Fruit supplier Fyffes has warned consumers that they can expect to pay higher prices for bananas in the near future.
Tropical food firm Fyffes has reported that higher fruit costs, the strength of the US dollar and the hike in fuel prices will mean necessary increases in selling prices for its produce in key markets.
With retailers and manufacturers using pricing intelligence in pricing decisions, the news of the Fyffes price increase will make for interesting decisions around competitor price monitoring.
The announcement came as the Dublin-based company reported a 30 per cent rise in profits to €22.4 million for the first half of 2012. Revenue rose by a fifth to €550.1 million for the six-month period. As conditions remain firm in its key European markets, Fyffes has increased its estimates for full-year earnings by at least €3 million.
“The group continues to pursue necessary increases in all markets to offset the impact of adverse exchange rate movements and the higher cost of fuel and fruit,” said the company. It added that it continued to focus on its cost base and the efficiency of its operations during 2012. The firm revealed it had achieved savings from changes to its shipping logistics pision. The bananas are sourced in tropical countries such as Colombia, Costa Rica and Guatemala.
© Profitero 2012
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