Commission européenne, B-1049 Bruxelles / Europese Commissie, B-1049 Brussel - Belgium. Telephone: (32-2) 299 11 11.Office: L130 7/81. Telephone: direct line (32-2) 296.55.98. Fax: (32-2) 295.37.09.mail: felice.romano@ec.europa.eu

EUROPEAN COMMISSIONDIRECTORATE-GENERAL FOR AGRICULTURE AND RURAL DEVELOPMENT

Directorate C. Economics of agricultural markets (and CMO)C.2. Olive oil, Horticultural products

Brussels, 10 March 2010FR (2010)

Bananas - Market report 2009

1. Summary

In 2009 overall banana imports into the E.U. decreased by 6.9%: MFN imports declinedby 9.6% and ACP imports grew by 4.3%, respectively, in comparison with 2008.

Wholesale prices for all the origins (MFN, EU and ACP) have been slightly higher than in 2008 (+1%, +4% and +2%, respectively): these levels are very close to those of 2005, when they set record historical high prices.

Aldi's price, which is considered the benchmark price by the industry, in 2009 was 4% higher than in 2008: however, in 2009 this price was at extremely stable level in the second part of the year, compared to previous periods.

On 15 December 2009 the Geneva Agreement on Trade in Bananas was initialled. This deal provides for the cut of the EU import duty down to € 114 tonne in 2017/ 2019: this might benefit producers and consumers, but this is not guaranteed.

On 22 February and 2 March Chiquita International and Fresh Del Monte, two of theleading global producers and distributors in the banana business, reported financial and operating results for the fourth quarter and the whole year of 2009. Both companies have reported positive financial results in the banana sector, although at slightly lower level related to the previous year: Chiquita operating income was $171 million (compared to $184 million in 2008, decreasing by 7.3%); Del Monte gross profit was $108.7 million(compared to $117.7 million in 2008, declining by 7.6%).

These less favourable financial results were mostly due to relatively high fruit costs and lower profitability in the company's banana business segment in the European market and a weak Euro.

Dole has not yet reported 2009 financial results, which are expected for 2 April 2010.

On 5 March 2009, Fyffes has announced for 2009 an adjusted Earning Before Interest and Tax of € 20.7 million, compared to € 15.3 million in 2008, their best results since 2005.

2

2. Banana market during the fourth quarter of 2009.

In the fourth quarter of 2009, overall volumes of bananas imported into the E.U. were 1 154 519 tonnes (see table 3), compared to 1 201 349 tonnes in the same period in 2008, which represents a decrease of 3.9%.

MFN countries exports into the E.U. declined by 4.7% in comparison with the same period of 2008 (from 942 352 to 898 282 tonnes), and imports from ACP countries were1.1% lower, decreasing from 258 997 to 256 237 tonnes, (see table 3).

During the fourth quarter of 2009, banana imports in the United States decreased by 2.6%in relation to the same period in 2008, declining from 970 364 to 945 296 tonnes.

3. Banana market during the year 2009.

3.1. Volumes

Throughout the years 2006 to 2008, since the liberalization of the European Union banana market, E.U. imports have been trending upwards, setting a new record year after year. In 2009, for the first time, imports into the E.U. were lower than the previous years.

In 2009, the adverse impact of the financial crisis on the world economy in terms of output and employment affected severely the global demand: according to WTO initial data, world trade global demand contracted in 2009, in volume terms, by around 12%.

Banana trade did not escape to this negative world economic trend. However, the downturn for banana exports was less abrupt than for other products, notwithstanding the fact that,further to the global recession, in 2009 the banana economic sector was also affected by specific troubles: bad weather and social unrest.

Hence, due to severe storms causing major flooding in Costa Rica in February 2009 and heavy rains in Honduras and Panama, as well as two weeks strike of workers in Colombia in May, the overall availability of bananas was drastically cut notably during the first semester of 2009.

Heavy rainfall and flooding in February 2009 destroyed further thousands of hectares of bananas in Costa Rica, E.U. second major banana supplier (further to the flooding of November 2008).

3

3.1.1. MFN imports

Cumulative bananas imports from MFN countries in 2009 in the E.U. were down compared to the same period of 2007 and 2008, and slightly higher than 2006 (see chart here below).

Cumulative imports MFN countries 2003-2009

0

500.000

1.000.000

1.500.000

2.000.000

2.500.000

3.000.000

3.500.000

4.000.000

4.500.000

Janu

ary

Februa

ryMarc

hApri

lMay

June Ju

ly

Augus

t

Septem

ber

Octobe

r

Novem

ber

Decem

ber

Tonn

es

2003200420052006200720082009

Source: Eurostat

Due to the unfavourable weather conditions above mentioned, in 2009 overall volumes of bananas imported into the E.U. were 4 512 412 tonnes (see table 1), compared to 4 848 975tonnes in 2008, which represents a decrease of 6.9%. Most of this decline is attributed to a much smaller banana crop in Costa Rica and Panama.

During the year 2009, volumes of bananas imported from the MFN countries fell by 9.6% in comparison with 2008 (from 3 930 663 to 3 554 405 tonnes).

3.1.2. ACP imports

In 2009 banana imports from ACP countries were 4.3% higher than 2008 (from 918 312 to958 007 tonnes), which is ACP best ever export outcome!

This positive ACP result in 2009 was mostly due to good weather conditions, with no hurricanes affecting Caribbean banana producing countries, notably in the last six months of the year (see chart here below).

4

Cumulative imports ACP countries 2003-2009

0

200.000

400.000

600.000

800.000

1.000.000

1.200.000

Janu

ary

Februa

ryMarc

hApri

lMay

June Ju

ly

Augus

t

Septem

ber

Octobe

r

Novem

ber

Decem

ber

Tonn

es

2003200420052006200720082009

Source: Eurostat

The upward trend has concerned particularly two ACP origins, Ivory Coast and Dominican Republic, which have increased their banana exports respectively by 5.8% and 33.8%.

3.1.2. U.S. imports

During the year 2009, banana imports in the USA decreased by 10% compared to 2008,from 3 977 914 to 3 579 968 tonnes, (see table 2).

In U.S. too reduced banana supplies in major MFN producing countries like Costa Rica, Panama and Honduras, have affected the overall MFN quantities of fruit available. According to a report " Fruit and tree nuts outlook" from the USDA, United States Department of Agriculture: "Adverse weather conditions during 2009 in banana producing countries in Central America drove down supplies available for shipping to the United States, resulting in 10% lower imports and, amazingly, lower prices. Imports from Costa Rica, once the major supplier, were at a 20 year low. Shipments were also down from Guatemala, now the number one supplier and from Colombia and Honduras. Banana retail price in October, at 59.8 cents per pound, was the lowest since March 2008 and may return to a more average price by early 2010".

3.2. Prices

As a number of banana-producing countries experienced production setbacks due to unfavourable weather conditions, particularly during the first part of the year, the resulting lower supplies imported in 2009 has led to slightly higher prices compared to 2008.

5

Furthermore, global banana prices were already bolstered by a strong increase of costs of the inputs used in order to grow bananas in the producing countries, as well as from the emergence of new source of demand for this fruit from consuming countries like Russia, which is now the main destination for Ecuadorian bananas, and Middle east countries.

The extreme high prices reached during the first four months of 2009 rallied to 1.30 €/Kg.in mid-March, which is the highest level since at least 2004: this price strength occurred during a period of relatively low fruit availability in the main producing countries due to severe weather conditions.

3.2.1. MFN yellow wholesale price

As a consequence of these different factors, Wholesale prices of yellow MFN bananashave increased during the year 2009, compared to 2008, by approximately 1% (see chart here below).

1. Wholesale prices of yellow dollar- bananas in the EU273-week average in MEMBER STATES

0,20

0,40

0,60

0,80

1,00

1,20

1,40

1 6 11 16 21 26 31 36 41 46 51 Week

EUR/kg

200420052006200720082009

Source: Member states

Afterwards, in the second and third quarters wholesale prices have declined to a more average seasonally level, from the very high level of 1.30 €/Kg. in mid-March to an unusual low of 0.92 €/Kg. in the end of November.

3.2.2. Aldi's price

Aldi's price, which is fixed weekly and is considered by the industry as a reference price on which basis others prices are determined, during the period has been much more stable than previous years.

Following a record high of 1.01 €/Kg. in mid March, due to a certain shortage of fruit for the reasons above mentioned, this price declined to a more seasonally level of 0.67 €/Kg. during the month of August, remaining at this level for the rest of the year.

6

Nevertheless, during the year 2009 as a whole, Aldi's price was 4% higher compared to2008, and 12% higher compared to 2007(see chart here below).

ALDI PRICES 2004-2009

0,00

0,20

0,40

0,60

0,80

1,00

1,20

S1 S3 S5 S7 S9S11 S13 S15 S17 S19 S21 S23 S25 S27 S29 S31 S33 S35 S37 S39 S41 S43 S45 S47 S49 S51

Week

Euro

/Kg

2004

2005

2006

2007

2008

2009

Source: CIRAD

3.2.3. EU yellow wholesale price

EC wholesale price remained higher than the previous year, particularly in February, March, October and November 2009, due to.

Hence, in the end of March 2009 the EC wholesale banana price hit a peak of 1.22 €/Kg., which is the highest level for this period of the year since 2004.

During the summer period, due to a strong crop, EC wholesale price hit a low of 0.68€/Kg., followed by a new surge in the fourth quarter to 1.19 €/Kg., which is the new peak for this period of the year.

EC wholesale has been extremely volatile in 2009, with changes upwards and downwards of a magnitude never reached before, due to a marked high instability in the offer of the fruit all year long.

Wholesale prices of yellow EU bananas during 2009 have been 4% higher compared to 2008 (see chart here below).

7

3. Wholesale prices of yellow EC- bananas in the EU273-week average in MEMBER STATES

0,20

0,40

0,60

0,80

1,00

1,20

1,40

1 6 11 16 21 26 31 36 41 46 51 Week

EUR/kg

2004

2005

2006

2007

2008

2009

Source: member State

3.2.4. ACP yellow wholesale price

During the year 2009 ACP wholesale yellow bananas prices were 2% higher compared to2008, notably due to very high prices in the first quarter of the year, because of a relatively short supply of both MFN and ACP bananas (see chart here below).

2. Wholesale prices of yellow ACP- bananas in the EU273-week average in MEMBER STATES

0,20

0,40

0,60

0,80

1,00

1,20

1,40

1 6 11 16 21 26 31 36 41 46 51 Week

EUR/kg

2004200520062007200820092010

Source: member States

Strong fluctuations in the banana supplies and prices created an additional strain to the market. The major part of the ACP yellow wholesale price increase occurred in the period from mid-February to mid-April, with a record high of 1.21 €/Kg. in the end of February.

8

Afterwards, from mid-July onwards ACP yellow wholesale price declined to a point closer to the average for the period, stabilizing in the second half of the year, in a range between 0.79 €/Kg. to 0.90 €/Kg, which is normal for this time of the year.

4. Chiquita earning conference call, 23 February 2010.

Chiquita reported that in 2009 banana segment operating income decreased by 7.3%compared to the same period of last year (from $ 184.2 million in 2008 to $ 171 million in 2009). This was primarily due to higher banana pricing, notably in Europe and North America market, partially offset by:

• Unfavourable Euro/dollar exchange rate,

• Overall supply and demand balance from MFN sources, which was relatively tight.

• Higher banana production costs and higher industry costs for purchased fruit.

Chiquita's bananas worldwide net sales in 2009 increased by 1% up to $ 2 082 million, compared to $ 2 060 million in 2008.

Mr. Aguirre, Chairman and Chief Executive Officer of Chiquita International declared:

"We doubled our profitability in 2009 despite the difficult recessionary environment by focusing on cost control and pricing discipline".

During the year 2009 Chiquita has reported that its average banana price grew by 5.2% on a local currency basis on the European market1 (although they decreased by 0.4% in US $ basis). Volume of bananas sold on the European market2 was 9.6% lower than 2008.

On the North American market, Chiquita prices and volume were, respectively, 3.8% and 1.8% higher on that market in relation to 2008.

5. Dole Food earning conference call, 2 April 2010.

Dole Food Company, the world's largest producer and seller of fresh fruits and vegetables, announced on 22 October 2009 an Initial Public Offering of 41% of the capital stock, coming back to the stock market after six years in private hands.

Furthermore, Dole announced that the company intends to hold a conference concerning its complete 2009 results on April 2, 2010.

Therefore, their 2009 financial results are not yet known.

1 EU-27 plus Switzerland, Norway and Iceland.

2 EU-27 plus Switzerland, Norway and Iceland.

9

6. Fresh Del Monte earning conference call, 2 March 2010.

Fresh Del Monte has reported that in 2009 gross profit for the banana segment was $ 108.7 million compared to $ 117.7 million for the same period last year, which represent a decrease of 7.6%.

Sales of bananas in 2009 were $ 1 510.9 million, compared to $ 1 420 million in the previous year (+ 6.4%).

Mr. Abu Ghazaleh, Chairman and Chief Executive Officer of Fresh Del Monte Produce declared:

"We delivered a solid fourth quarter, particularly in the face of a prolonged economic slowdown which affected profitability in our Europe and Asia banana business".

7. Fyffes, Stock Exchange Announcement, 5 March 2010.

Irish fruit distributor Fyffes announced to the Stock Exchange on 5 March 2010 an adjustedEBIT (Earning Before Interest and tax) of € 20.7 million for 2009, whereas in 2008 it was € 15.3 million, which represent an increase of 33%. This is the company's best result since the change in the E.U. banana import regime in 2006.

8. MFN imports

8.1. Ecuador

Ecuador is by far the largest exporter of bananas in the world and E.U. major supplier. By contrast, on USA market Ecuador is only the second major supply after Guatemala.

Notwithstanding the global economic crisis, 2009 was another very good year for the banana industry in Ecuador.

According to the Ecuadorean Central Bank, during the year 2009 banana exportsworldwide have increased by 6.6% in comparison with 2008, from 5 132 784 to 5 473 093 tonnes, following the good results of 2008 and 2007, when for the first time the ceiling of 5 million tonnes was reached.

More impressive, during this period the value of banana exports worldwide grew by 14%compared with the same period of 2008: the average price of the bananas rose from 307 $/ton in 2008 to 350 $/ton in 2009.

This excellent result was also due to the increasing volumes of bananas exported during the first quarter 2009, when Ecuador banana exports to the E.U. where at their highest level ever for three consecutive months (see chart here below).

10

Monthly Imports from Ecuador

0

40.000

80.000

120.000

160.000

1 2 3 4 5 6 7 8 9 10 11 12

January - December

Tonn

es

200420052006200720082009

Source/ Eurostat

Exports to the EU have been 3.8% lower than 2008: from 1 328 033 tonnes (which was the best ever result for Ecuador) to 1 278 041 tonnes, which is Ecuador second best ever (see

table1).

In the same period, Ecuadorean bananas exported to USA were 955 677 tonnes, compared to 830 268 tonnes in 2008 (+15%) (see table 2).

Furthermore, according to the Ecuadorean Central Bank, since 2005 Ecuadorian overall banana exports worldwide grew in quantity terms by 18%, increasing from 4 653 878 tonnes in 2005 to 5 473 093 tonnes in 2009.

More remarkable, according to the same source, during the same period the value of Ecuadorian bananas worldwide surged by 84%, increasing from US $ 1 041 million to US $ 1 919 million, due to a strong increase of producing prices.

On 1st January 2009 the new banana reference price was fixed at $ 5.05 per box by the Minister of Agriculture in Ecuador, following the previous increases on 8 April 2008 and 31 July 2007 when it went up from $ 3.25 to $ 3.75 and, afterwards, to $4.80 per box. This represents a remarkable increase of 55% in less than two years.

In addition, on 2nd of July the Minister of Agriculture announced a new increase of the official price which is now $ 5.40 per box (5.05 as minimum price plus a bonus of $ 0.35).

8.2. Costa Rica

According to Procomer, the Costa Rican export promotion organisation, in 2009 the value of banana exports decreased by 19% worldwide compared to the same period of 2008, due

11

to a fall of banana exports only partially offset by an increase of the local referential price. Moreover, exports of pineapples for the first time exceeded foreign earnings of Costa Rica agricultural traditional product, bananas.

Heavily geared towards the export market, the smaller banana crop in Costa Rica curtailed export availability, providing so more opportunities for countries like Ecuador and Colombia which stepped in to fill the supply gap, especially in both countries' top export market: the European Union and United States.

Banana supplies from Costa Rita were very low during all the period. Rains and flooding in November 2008 and February 2009 limited banana production in Costa Rica, which did not recover,(see chart here below).

Monthly Imports from Costa Rica

0

30.000

60.000

90.000

120.000

1 2 3 4 5 6 7 8 9 10 11 12

January - December

Tonn

es

200420052006200720082009

In 2009, banana imports into the E.U. from Costa Rica, now E.U. third major supplier, fell significantly. The decrease of exports to the EU has been of 15.7%, only 752 890 tonnes compared to 893 395 tonnes in 2008 (see table 1).

In the same period, bananas exported from Costa Rica to USA fell even more, 544 435tonnes, compared to 874 424 tonnes in 2008 (-38%), (see table 2).

Hence, in 2009 Costa Rica lost by far the place as the second major supplier on the USA banana market, after Guatemala to Ecuador.

Costa Rican government from 1st January 2008 increased the minimum price for the banana box paid by traders to the independent producers from US $ 5.85 to US $ 6.45.

Moreover, since 1st January 2009 Costa Rica Government has established this price at US $ 7.59, instead of US $ 6.45, which represents an outstanding increase of 29.7% in one year.

12

It is worthwhile to remind that during the years 2007 and 2006 the value of bananas exports had already increased by 11% and 28 %, respectively, compared to previous years.

8.3. Colombia

Colombia is the country which has most profited of the increased banana market access on the E.U. market in recent years.

After the recovery following a certain shortage of bananas in May and June of 2009, due to banana plantation workers strike, Colombia banana exports to the E.U. have hit a threeconsecutive months of best ever exports, in the fourth quarter of 2009, (see chart here below).

Monthly Imports from Colombia

0

35.000

70.000

105.000

140.000

1 2 3 4 5 6 7 8 9 10 11 12

January - December

Tonn

es

200420052006200720082009

In 2009, banana exports from Colombia into the EU were 1 205 988 tonnes, compared to 1 278 133 tonnes in 2008 (-5.6%) (see table 1).

Furthermore, for the first time ever, in 2009 Colombia has been E.U. major supplier in sixmonths of the year (from July to December), overtaking Ecuador which has become second major supplier in these months.

In the same period, bananas exported from Colombia to USA were 421 466 tonnes, compared to 450 757 tonnes in 2008, which represents a decrease of 6.5% (see table 2).

By contrast, according to DANE ( Departamento Administrativo Nacional de Estadistica), in 2009 banana exports worldwide increased by 16% compared to 2008, from 1 690 347 tonnes to 1 959 290 tonnes.

13

Anyway, these figures seem unlikely taken into account:

• industry reports,

• the two weeks workers strike in May,

• data on banana imports in Colombia two main export markets, E.U. and USA, where during the period the imports of bananas from this origin were lower than in 2008, (see tables 1 and 2 in annex).

Banana exports in Colombia in 2009 were still in an upward trend at their highest level ever. Moreover, in May 2009 approximately 17 000 banana plantation workers joined a strike for nearly two weeks. The protest paralyzed around 5 000 tonnes of banana exports a day, according to farm union.

In 2009 Colombia FOB prices of bananas increased by 10% related to 2008, growing from US $ 360 to US $ 397 per tonne, further to a 11.4 % growth in 2008 compared to 2007,when they rose from US $323 to US $ 360 per tonne.

8.4. Panama

Banana production is still going through a difficult time in Panama, and 2009 was the latest evidence.

Panama banana exports into the EU in 2009 have decreased by 37.7%, declining from 294 588 tonnes in 2008 to 183 455 tonnes in 2009 (see table 1), due notably to local major social problems in the Cooperative of Multiple Services of Puerto Armuelles (Coosemupar), the main independent banana producer in Panama. Hence, banana imports from Panama have been at their low level since 2004(see chart here below).

Monthly Imports from Panama

10.000

20.000

30.000

40.000

50.000

1 2 3 4 5 6 7 8 9 10 11 12

January - December

Tonn

es

200420052006200720082009

Source: Eurostat

14

Panama banana exports into the USA during the same period fell by 33% compared to 2008, from 8 046 tonnes to 5 380 tonnes (see table 2).

The future of the Cooperative of Multiple Services of Puerto Armuelles (Coosemupar), the main independent banana producer in Panama, has been extremely uncertain since September 2008, when Coosemupar announced the loss of 90% of its banana production due to Black Sigatoga disease.

The plague was the result of a lack of adequate control and preventive measures and the use of inappropriate fumigating cycles.

In the end of April 2009, the Government of Panama and the multinational Del Monte reached an agreement on which basis the company was awarded a lease for nearly 3 000hectares of the banana plantations of Coosemupar, for a period of 25 years.

Afterwards, following a strike of Coosemupar workers against this agreement, in the beginning of May Del Monte has withdrawn its offer, leaving the future of Panama's largest banana producer and exporter once again extremely uncertain.

8.5. Honduras

According to the Honduras Central Bank, in 2009 banana exports worldwide decreased by 14% compared to 2008, from 549 702 to 472 532 tonnes.

Honduras banana exports into the EU declined during the period by 64%, from 23 954tonnes in 2008 to 8 523 tonnes in 2009(see table 1).

Honduras banana exports into the USA during 2009 fell by 23% compared to 2008, from 505 578 tonnes to 390 456 tonnes (see table 2).

8.6. New players in the E.U. banana market: Guatemala, Brazil, and Peru

8.6.1. Guatemala

Guatemala banana exports to the E.U. in 2009 have decreased by 74% compared to 2008, from 14 275 tonnes to 3 672 tonnes (see table 1).

During the same period, Guatemala exports to the USA, declined by 6.5%, from 1 188 724 tonnes in 2008 to 1 111 812 tonnes in 2009, being by far the first banana major supplier on the USA market (see table 2).

According to the Guatemala Central Bank, during the year 2009 banana exports have increased by 24% worldwide in comparison with 2008, from 1 296 722 tonnes to 1 613 907 tonnes in 2009. This seems to be unlikely, bearing in minds data above mentioned.

In value terms, Guatemala worldwide banana exports in 2009 were US $ 481 million, compared to US $315 million the previous year, growing by 53%, due notably to higher prices.

15

8.6.2. Brazil and Peru

In 2009 Brazil and Peru shipments of bananas into the EU have had different trends, compared to the same period of 2008: Brazil exports decreased by 3.7% (from 58 154 to 56 002), while Peru increased by 14% (from 38 451 to 43 926), (see table 1).

Peru exports of bananas to the USA declined by 13% during this period, from 22 511 to 19 677 tonnes in 2009.

Brazil is not a supplier of bananas of the USA market.

In recent years Peru has become one of the major organic banana exporters.

9. ACP exports

During the year 2009 overall exports of ACP bananas into the E.U. expanded by 4.3%compared to the same period 2008, growing from 918 312 to 958 007 tonnes (see table 1).

Compared to the same period of the previous year, ACP countries shipments of bananas into the EU in 2009 have increased from:

Dominican Republic (+33.8%), Ivory Coast (+5.8%), Windward Islands (+33%), (see

table 1).

By contrast, exports to the E.U. fell from Cameroon (10.7%), Belize (2.9%), Suriname(12.5%), and Ghana (20.6%).

Jamaica did not export bananas since 2007(see table 1).

The very good ACP outcome, which is the best result ever for this group of countries, has kept an upward trend notably during the last seven months of the year (in which five months out of seven were best ever), (see chart here below).

16

Monthly Imports from ACP zone (all countries)

30.000

45.000

60.000

75.000

90.000

105.000

1 2 3 4 5 6 7 8 9 10 11 12

January - December

Tonn

es

200420052006200720082009

Source: Eurostat

This very positive trend was notably due to some Caribbean countries recovery from hurricanes damages of the previous year, although imports from Dominica look not plausible, (see table 1).

Anyway, according to a representative of the Association of banana Growers of the Dominican Republic, the Caribbean Island had in 2009 a record banana production which generated export revenues of more than US $ 100 million.

ACP countries do not use to export bananas to USA: in 2009 they exported only 1 047tonnes from Dominican Republic.

10. Main news on bananas during 2009.

10.1 Geneva Agreement on Trade in Bananas

The European Commission initialled an agreement on bananas with Latin American Most Favoured Nation (MFN) on 15 December 2009. This deal has brought to an end to the longstanding banana dispute, which soured E.U. external trade relations for many years; The United States also agreed to settle their open dispute on bananas with the E.U..

According to this agreement, the E.U. will:

• Cut the MFN import tariff on bananas in eight steps, from the current rate of € 176/tonne to € 114 tonne in 2017 at the earliest (or 2019 at the latest).

• Make the biggest cut first, by 28 €/tonne to €148/tonne, once all parties sign the deal.

17

In return, MFN countries and U.S. will settle the legal disputes still pending against the E.U. at WTO and not demand further cuts in the framework of the Doha Round talks on global trade, once it resumes.

When all parties will sign the agreement, the E.U. will make the first cut to € 148/tonne: this will apply retroactively from 15 December 2009, the date when all parties initialled the agreement.

Starting on 1 January 2011, the tariff will fall again at the start of each year for seven years, in annual instalments (€143, €136, €132, €127, €122, €117, €114).

The E.U. will freeze its cuts for up to two years if Doha Modalities3 are not established by the end of 2013.

Then from 2016 at the latest, the E.U. will continue cutting its tariff each year, as agreed -whatever happens in the Doha Round- until reaches €114/tonne on 1 January 2019 at the latest.

10.2 BAM, Banana Accompanying Measures for ACP countries.

Following the Geneva Agreement on Trade in Bananas, in order to support African, Caribbean and Pacific (ACP) countries that have supplied significant volumes of bananas to the EU market over the past ten years, in their adaptation to increased competition, the Commission will propose to the EU's legislative and budgetary authorities a specific development programme amounting to a maximum of €200 million.

Further to €190 million which are expected to be available from 2010-2013, the Commission has expressed willingness to examine together with the budgetary authority the possibility of topping up this amount by €10 million in case the corresponding credits should become available in the course of the annual budget procedures.

This deal offers to ACP countries two important outcomes:

• Predictability, the EU guarantees it will not cut its bananas tariff any further in the framework of the Doha Round;

• Time to adapt, because ACP countries will have several years to adjust to stiffer competition from Latin America countries exporting bananas.

3 Doha Modalities means that a consensus has been reached in the Trade Negotiations Committee to proceed to scheduling in Agriculture and Non-Agricultural Market Access negotiations.

18

11. Further news on bananas.

11.1 Canary Islands bananas removed from the market.

During the summer period bananas prices were at very low level. According to Asprocan (Asociación Organizaciones Productores de Plátano de Canarias), 12 400 tonnes of bananas were removed from the market in order to avoid market saturation and further fall of prices: producers were compensated at 15 cents per Kg.

11.2 U.K. banana price war.

According to the press, a supermarket banana price war started last September in United Kingdom. In mid October Asda/Wal-Mart fired its latest salvo of this war, reducing the fruit's price to 38 pence a kilo, its sixth cut in sixth weeks.

Competitor supermarket chain Tesco brought it down even more, to 35 pence a kilo, the lowest price in U.K. in 14 years.

These companies declared that the cost of reducing the retail price were taken by their own margins and not pass it on up the supply chain (reducing the price paid to their suppliers and, ultimately, to producers).

Nevertheless, according to the U.K. press, several civil society organisations described this price war a "race to the bottom" done at the expenses of banana producers, particularly those from the Windward Islands.

11.3. E.U. Commission announce sending Statements of objections to alleged participants in banana cartel in Southern Europe.

The European Commission stated that in December 2009 it sent a Statement of Objections under EU antitrust rules to a number of companies active in the import and marketing of bananas, concerning their alleged participation in a cartel in violation of the rules on restrictive business practices (Article 101 of the Treaty).

This is a formal step in Commission antitrust investigations in which the Commission informs the parties concerned in writing of the objections raised against them.

The parties concerned can reply in writing and request an oral hearing to present their comments on the case.

According to the press, Chiquita confirmed it had received a notice from the European Commission regarding an investigation on possible violations of competition law.

By contrast, Dole and Fresh Del Monte declared that no entities of these groups were concerned by this case.

19

11.4. ACP new market developments on bananas.

In March 2008 Chiquita announced a strategic association in Angola and Mozambique for the export of bananas to the E.U., respectively, with Matanuska Moçambique and Escom.

Chiquita expected to provide 20% to 30% of the company's volume in the E.U. from these sources, upon project completion. Chiquita planned to start the exports in the end of 2010.

On 11 March 2009 Matanuska , which produces bananas in 3 000 hectares in the Mozambican district of Monapo, announced that in October it will start to export weekly approximately 2 000 tonnes of bananas.

On 30 April 2009 Angola's agricultural Minister announced that the government planned to invest $ 1 billion in 2009 in the banana sector in the southern province of Benguela, in a partnership between Escom and Chiquita.

Nevertheless, on 23 September Escom announced the suspension of this banana production project in Angola.

According to the press, in April 2009 the Cameroon Development Corporation will start developing a 1 750 hectare banana plantation in the Boa plain, in Cameroon, aiming at a 60% increase of the company's banana production.

Last but not least, Compagnie Fruitière in February 2009 announced that they will start an extension of 1 130 hectares of their banana plantation in Ivory Coast.

12. Conclusions.

Banana imports into the E.U. have followed an upward trend between 2006 and 2008, since the market was deregulated in the EU in January 2006, with a surge of 23.5%.

Due to the increased market access in those years, imports into the E.U. rose sharply fromboth main sources of banana imports, MFN and ACP:

• From MFN countries imports grew from 3 161 104 tonnes in 2005 to 3 930 663 tonnes in 2008 (an increase of 24%), accounting for 81% of total import volume in the E.U., compared to 80% in 2005.

• From ACP origins, banana imports increased from 763 618 in 2005 to 918 312tonnes in 2008 (an increase of 20%), which represents an almost stable market share, about 19%.

However, in 2009 this upward trend stopped, due to:

• Severe weather conditions, which badly affected Central America producing countries, notably Costa Rica

• Adverse impact of the world financial crisis on global economy

• Higher fruit costs

20

• Relatively weak Euro.

Mr. Aguirre, Chairman and Chief Executive Officer of Chiquita International, in the conference call on 23 February 2010, had declared:

"We doubled our profitability in 2009 despite the difficult recessionary environment by focusing on cost control and pricing discipline".

Mr. Abu Ghazaleh, Chairman and Chief Executive Officer of Fresh Del Monte Produce, in their conference call on 2 March 2010, had declared:

"In 2009 we delivered a solid fourth quarter, particularly in the face of a prolonged economic slowdown which affected profitability in our Europe and Asia banana business".

Geneva Agreement on Trade in Bananas

Most of commentators predict that the Geneva Agreement on Trade in Bananas is likely toreduce prices for consumers, raise prices for producers, increase competition in the banana market and strengthen the strong position of low cost Latin American exporter's countries.

According to these commentators, as a consequence of the reduction of E.U. import duty, the price for bananas from Latin America countries could drop by as much as 12% and E.U. consumers will see the price of their bananas fall as result of this decision.

By contrast, it is highly likely that Chiquita, Dole, Del Monte and Fyffes may end as those which will benefit from this deal.

Duty is not paid by producer's countries but by E.U. importers and, ultimately, by E.U. consumers: therefore, E.U. importers could decide to keep import duty reduction for themor share it with retailers, for example.

Consumers and producers can benefit only if the big four major exporters/importers companies start to compete for new market share (as happened in 2006 when they took the cost of slashing the prices from their own margins and do not pas it up the supply chain).

It is worthwhile to remind that bananas exporters (mostly the four companies above mentioned) pay the same price to producers irrespective of the final destination of the fruit: E.U., U.S., Russia or Middle East countries.

In the case of lack of competition, producers and consumers might not benefit of the effects of this agreement.

21

LIST OF TABLES AND CHARTS

TABLES

Table 1 Evolution of bananas imports into the E.U., Eurostat data

Table 2 Evolution of bananas imports into U.S.A., USDA data

Table 3 Evolution of bananas imports into the E.U., 4th quarter, Eurostat data

Table 4 Banana supply in the E.U., Eurostat data

CHARTS:

CHART 1 Imports from MFN countries, Eurostat

CHART 2 Imports from Cameroon, Eurostat

CHART 3 Imports from Ivory Coast, Eurostat

CHART 4 Imports from Dominican Republic, Eurostat

CHART 5 Imports from Belize, Eurostat

CHART 6 Imports from Suriname, Eurostat

22

TABLE 1: Evolution of bananas imports into the E.U., Eurostat data

2004 2005 2006 2007 2008 2009 Av.2004/2006 Av.2006/2008 Var.2009/2008 Var.09/av.06-08 Var.09/av.04-06

Mexico 7.730 5.314 1.112 220 1.660 21.874 4.718 997 1217,5% 2093,3% 363,6%Guatemala 2.153 3.010 30.713 18.703 14.275 3.672 11.959 21.230 -74,3% -82,7% -69,3%Honduras 21.193 23.091 21.768 30.390 23.954 8.523 22.017 25.371 -64,4% -66,4% -61,3%Nicaragua 3 7 0 0 3Costa Rica 856.407 634.511 834.063 970.669 893.395 752.890 774.994 899.376 -15,7% -16,3% -2,9%Panama 370.834 281.639 312.978 353.991 294.588 183.455 321.817 320.519 -37,7% -42,8% -43,0%Colombia 766.501 882.395 951.376 1.153.912 1.278.133 1.205.988 866.757 1.127.807 -5,6% 6,9% 39,1%Venezuela 22.381 17.092 14.575 9.900 0 0 18.016 8.158Ecuador 1.120.762 1.239.220 1.199.367 1.183.466 1.328.033 1.278.041 1.186.450 1.236.955 -3,8% 3,3% 7,7%Peru 9.590 11.490 22.703 33.531 38.451 43.926 14.594 31.561 14,2% 39,2% 201,0%Brazil 51.984 63.337 95.595 85.865 58.154 56.002 70.305 79.871 -3,7% -29,9% -20,3%Bolivia 17 0 6 6Sri Lanka 4 6 5 7 7 25 5 6 252,1% 292,7% 417,2%Thailand 0 0 2 4 6 9 1 4 50,0% 126,9% 12,5TOTAL 3.229.538 3.161.104 3.484.273 3.840.661 3.930.663 3.554.405 3.291.638 3.751.866 -9,6% -5,3% 8,0%

2004 2005 2006 2007 2008 2009 Av.2004/2006 Av.2006/2008 Var.2009/2008 Var.09/av.06-08 Var.09/av.04-06

Cameroon 261.232 252.912 252.702 222.292 279.530 249.614 255.615 251.508 -10,7% -0,8% -2,3%Ivory Coast 210.760 183.752 221.791 190.068 216.583 229.195 205.434 209.481 5,8% 9,4% 11,6%Dominican Rep. 101.337 144.683 176.757 206.164 170.396 227.984 140.926 184.439 33,8% 23,6% 61,8%Belize 80.292 74.189 73.207 61.175 82.146 79.799 75.896 72.176 -2,9% 10,6% 5,1%Surinam 19.447 35.258 45.146 54.342 65.812 57.615 33.284 55.100 -12,5% 4,6% 73,1%St.Lucia 42.872 28.243 36.726 30.456 38.512 33.238 35.947 35.231 -13,7% -5,7% -7,5%St-Vincent 23.962 15.893 17.239 13.792 8.975 7.511 19.031 13.335 -16,3% -43,7% -60,5%Dominica 12.167 12.814 13.298 7.291 10.281 36.451 12.760 10.290 254,5% 254,2% 185,7%Jamaica 28.660 11.654 31.863 18.371 40 0 24.059 16.758Ghana 1.788 4.207 22.404 33.404 45.951 36.486 9.467 33.920 -20,6% 7,6% 285,4%Rwanda 39 57 59 59 31 20 52 50 -35,5% -59,7% -61,3%Uganda 17 23 29 46 55 57 23 43 3,6% 31,5% 147,8%Burundi 0 0 0 11 33 37TOTAL 782.924 763.618 891.133 837.353 918.312 958.007 812.559 882.266 4,3% 8,6% 17,9%

Total MFN+ACP 4.012.462 3.924.722 4.375.406 4.678.013 4.848.975 4.512.412 4.104.197 4.634.132 -6,9% -2,6% 9,9%Source: Comext2 k0521907,txt Extracted: 24/02/2010, provis ional data.DataSet: EU27 SINCE 1999 CN (SIMULATED)

23

TABLE 2

February 16, 2010UNITED STATES DEPARTMENT OF AGRICULTURE

FOREIGN AGRICULTURAL SERVICEFAS AGRICULTURAL IMPORT AGGREGATIONS AND HS-10 DIGIT IMPORT COMMODITIES

AREA/COUNTRIES OF ORIGIN JANUARY - DECEMBER | JANUARY - DECEMBERAND COMMODITIES IMPORTED QUANTITIES | COMPARISONSCONSUMPTION IMPORTS 2004 2005 2006 2007 2008 | 2008 2009 %CHNG

COLOMBIA BANANAS, FRESH 0803002020 MT 464,592.4 513,748.3 473,825.6 377,231.8 450,757.3 | 450,757.3 421,465.7 -6COSTA RICA BANANAS, FRESH 0803002020 MT 865,297.9 822,730.5 927,360.6 1,036,897.2 874,424.0 | 874,424.0 544,435.1 -38DOMINICAN REPUBLIC BANANAS, FRESH 0803002020 MT 5,200.5 4,436.9 6,213.4 1,720.2 111.7 | 111.7 1,047.5 838ECUADOR BANANAS, FRESH 0803002020 MT 918,926.3 904,306.3 994,335.2 929,174.6 830,268.3 | 830,268.3 955,677.4 15GUATEMALA BANANAS, FRESH 0803002020 MT 1,020,764.9 1,029,280.0 912,902.1 1,093,390.7 1,188,724.0 | 1,188,724.0 1,111,812.3 -6HONDURAS BANANAS, FRESH 0803002020 MT 507,914.3 453,011.2 422,904.7 482,732.0 505,578. | 505,578. 390,456.3 -23JAMAICA BANANAS, FRESH 0803002020 MT 0.0 0.0 0.0 0.0 21.0 | 21.0 0 --MEXICO BANANAS, FRESH 0803002020 MT 33,585.6 33,795.6 38,573.0 31,507.9 66,330.3 | 66,330.3 105,086.4 58NICARAGUA BANANAS, FRESH 0803002020 MT 41,502.2 38,066.6 30,465.0 32,788.2 31,142.4 | 31,142.4 24,911.2 -20PERU BANANAS, FRESH 0803002020 MT 12,384.0 22,344.8 25,055.5 17,847.7 22,510.6 | 22,510.6 19,677.4 -13PANAMA BANANAS, FRESH 0803002020 MT 611.9 2,019.0 7,515.5 501.9 8,045.9 | 8,045.9 5,379.7 -33PHILIPPINES BANANAS, FRESH 0803002020 MT 38.8 0.0 0.0 0.0 0.0 | 0.0 0.0 --VENEZUELA BANANAS, FRESH 0803002020 MT 2,007.5 670.1 316.5 0.0 0.0 | 0.0 0.0 --LEEWARD-WINDWARD ISL(*) BANANAS, FRESH 0803002020 MT 0.0 0.0 0.0 8.2 0.0 | 0.0 0.0 --

|TOTAL MT 3,872,826.4 3,824,409.3 3,839,466.9 4,003,800.4 3,977,913.9 | 3,977,913.9 3,579,968.3 -10

Data Source: Department of Commerce, U.S. Census Bureau, Foreign Trade StatisticsNote: All zeroes for a data item may show that statistics exist in the other import type. Consumption or General.

(*) denotes a country that is a summarization of its component countries.

24

TABLE 3Evolution bananas imports fourth quarter 2008/2009

2008-10 2008-11 2008-12 Cum.4th.Qt. 2009-10 2009-11 2009-12 Cum.4th.Qt. Var.4th.Qt.2.008 2.009 2008-2009

Mexico 368 850 268 1.486 3.625 3.044 2.241 8.910 499,6%Guatemala 1.906 851 939 3.696 664 414 129 1.207 -67,3%Honduras 3.128 1.664 1.396 6.188 765 627 515 1.907 -69,2%Nicaragua 0 0 0 0 0 0 0 0Costa Rica 83.530 76.347 58.811 218.688 60.615 72.612 60.231 193.458 -11,5%Panama 23.490 36.079 20.968 80.537 13.090 17.976 18.374 49.440 -38,6%Colombia 122.055 104.340 103.714 330.109 130.119 105.202 104.133 339.454 2,8%Venezuela 0 0 0 0 0 0 0 0Ecuador 101.301 86.694 93.241 281.236 92.911 88.803 100.429 282.143 0,3%Peru 3.012 2.493 2.627 8.132 3.556 3.438 3.233 10.227 25,8%Brazil 4.251 3.682 4.328 12.261 3.995 3.913 3.605 11.513 -6,1%Philippines 0 14 0 14 0 20 0 20 42,9%Sri Lanka 1 0 1 2 0 1 1 2 0,0%Thailand 1 1 1 3 0 0 1 1 -66,7%Total 343.043 313.015 286.294 942.352 309.340 296.050 292.892 898.282 -4,7%

2008-10 2008-11 2008-12 Cum.4th.Qt. 2009-10 2009-11 2009-12 Cum.4th.Qt. Var.4th.Qt.2.008 2.009 2008-2009

Cameroon 31.173 26.069 24.433 81.675 23.111 18.599 19.375 61.085 -25,2%Ivory Coast 24.528 19.535 17.230 61.293 23.190 22.991 21.720 67.901 10,8%Dominican R, 17.503 15.238 13.918 46.659 18.198 21.246 19.889 59.333 27,2%Belize 8.726 6.999 6.279 22.004 7.607 6.967 7.195 21.769 -1,1%Surinam 5.879 7.507 7.563 20.949 4.373 5.248 7.158 16.779 -19,9%St Lucia 3.464 3.413 4.014 10.891 2.559 3.472 2.937 8.968 -17,7%St Vincent 468 552 747 1.767 517 690 712 1.919 8,6%Dominica 858 697 1.935 3.490 3.240 3.090 346 6.676 91,3%Jamaica 0 0 0 0 0 0 0 0Ghana 3.758 3.072 3.412 10.242 4.444 4.372 2.957 11.773 14,9%Rwanda 0 4 3 7 3 0 1 4 -42,9%Burundi 6 2 0 8 7 4 4 15 87,5%Uganda 4 4 4 12 5 5 5 15 25,0%Total 96.367 83.092 79.538 258.997 87.254 86.684 82.299 256.237 -1,1%Total MFN+ACP 439.410 396.107 365.832 1.201.349 396.594 382.734 375.191 1.154.519 -3,9%

25

BANANA SUPPLY IN THE EUNC 08030019 EUR-27. Tonnes

ORIGIN 2003 2004 2005 2006 2007 2008 2009EU 765.416 758.206 648.375 641.559 554.734 567.560 608.048

Greece 2.670 2.868 2.932 2.948 2.943 2.657 2.589Spain 400.941 418.407 344.977 348.184 361.355 371.262 352.032

France 329.223 305.270 280.474 268.585 167.298 171.574 235.811Martinique 243.706 246.199 226.243 220.775 129.293 124.923 180.195

Guadeloupe 85.517 59.071 54.231 47.810 38.005 46.651 55.616Chypre* 11.200 10.500 5.827 6.525 5.950 4.226 3.155Portugal 21.382 21.161 14165 15.317 17.188 17.841 14.461

ACP Countries 798.313 782.556 763.662 891.192 837.425 918.226 958.007

Cameroon 298.493 261.232 252.912 252.702 222.292 279.530 249.614Ivory-Coast 207.420 210.760 183.752 221.791 190.068 216.583 229.195Domin. Rep. 111.948 101.337 144.683 176.757 206.164 170.396 227.984

Belize 73.806 80.292 74.189 73.207 61.175 82.146 79.799Jamaïca 41.775 28.660 11.654 31.863 18.371 40 0St Lucia 32.520 42.872 28.243 36.726 30.456 38.512 33.238

St Vincent 20.911 23.962 15.893 17.239 13.792 8.975 7.511Dominica 10.494 12.167 12.814 13.298 7.291 10.281 36.451

Ghana 946 1.788 4.207 22.404 33.404 45.951 36.486Suriname 0 19.447 35.258 45.146 54.342 65.812 57.615Rwanda 0 39 57 59 59 31 20Burundi 0 0 0 0 11 33 37Uganda 0 17 23 29 46 55 57

DOLLAR ZONE 3.232.285 3.229.539 3.161.105 3.484.257 3.840.661 3.930.663 3.554.405Ecuador 1.148.753 1.120.762 1.239.220 1.199.367 1.183.466 1.328.033 1.278.041

Costa Rica 802.040 856.407 634.511 834.063 970.669 893.395 752.890Colombia 799.237 766.501 882.395 951.376 1.153.912 1.278.133 1.205.988Panama 381.454 370.834 281.639 312.978 353.991 294.588 183.455

Brazil 49.962 51.984 63.337 95.595 85.865 58.154 56.002Venezuela 11.808 22.381 17.092 14.575 9.900 0 0Honduras 25.232 21.193 23.091 21.768 30.390 23.954 8.523

Peru 5.706 9.590 11.490 22.703 33.531 38.451 43.926Guatemala 6.879 2.153 3.010 30.713 18.703 14.275 3.672

Mexico 1.171 7.730 5.314 1.112 220 1.660 21.874Nicaragua 43 0 0 0 3 7 0Sri Lanka 0 4 6 5 7 7 25Thailand 0 0 0 2 4 6 9

ACP + DOLLAR 4.030.598 4.012.095 3.924.767 4.375.449 4.678.086 4.848.889 4.512.412ACP + DOLLAR + EU 4.796.014 4.770.301 4.573.142 5.017.008 5.232.820 5.416.449 5.120.460

Source: MS Communications (EU) / For EU production in 2009. Source: Eurostat EU-27: provisional data extracted on 24/02/2010 / Comext (ACP & DOLLAR Z.)

26

Imports from MFN zone (all countries)

150.000

200.000

250.000

300.000

350.000

400.000

1 2 3 4 5 6 7 8 9 10 11 12

January - December

Tonn

es

200420052006200720082009

Monthly Imports from Cameroon

0

10.000

20.000

30.000

40.000

1 2 3 4 5 6 7 8 9 10 11 12

January - December

Tonn

es

200420052006200720082009

27

Monthly Imports from Ivory Coast

0

10.000

20.000

30.000

1 2 3 4 5 6 7 8 9 10 11 12

January - December

Tonn

es

200420052006200720082009

Monthly Imports from Dominican Republic

0

10.000

20.000

30.000

1 2 3 4 5 6 7 8 9 10 11 12

January - December

Tonn

es

200420052006200720082009

28

Monthly Imports from Belize

0

3.000

6.000

9.000

12.000

1 2 3 4 5 6 7 8 9 10 11 12

January - December

Tonn

es

200420052006200720082009

Monthly Imports from Suriname

0

2.000

4.000

6.000

8.000

10.000

1 2 3 4 5 6 7 8 9 10 11 12

January-December

Tonn

es

200420052006200720082009