Saturday, March 15, 2014

Banana Opportunity — P.M.

2 comments:

Anonymous said...

Dr. Anthony does appear to have it all wrong. He is all over the map with a strange focus on the wrong issues.

The merged company has a new name and thus can be expected to function under different operating conditions as this relates to that part that was formerly Fyffes. The acquired part of the company will now have to toe the line regarding policy, objectives and the strategies of the purchasing "parent" company. The actual manager selected could provide some clues regarding intended and future company policy and strategy.

Quite clearly, there is no hyphen in the new name; it should be expected then that the new company will operate as a single unit, and not as separate autonomous business entities. No word forth came on that.

The most critical question to ask then is: Which former contractual arrangements with Winfresh -- if at all any -- would now survive under this new dispensation or after this M&A?

Next: If the old (supposedly contractual) agreements are not being honoured, will ChiquitaFyffes now ask its "new" supplier (Winfresh) for lower-priced fruit, in alignment with prices obtainable from Latin American suppliers, or find itself being shut out, or excluded from ChiqitaFyffes' supply chain? Being proactive, this is a reasonable question for domestic producers to ask.

Again: How long, can any existing contract be expected to last, or when, for any existing contract, is the termination date?

Further: No consideration was given to the issue of whether the Caribbean market is large enough to absorb our productive farm outputs. Will we have another round of domestic higher-cost producers exiting cultivation and the market?

No argument was presented on whether or not, the higher price obtainable in the Caribbean for the domestic produce, multiplied by the quantity sold would, or could compensate for, or offset any loss after this M&A. This to me is yet another important issue that escaped attention. We should be very clear on this matter going forward.

In the final analysis, it would have been a lot more comforting, if one could be assured that the Minister of Finance had caucused with Winfresh's "C-suite" before making those, up to now, unconvincing and unsubstantiated claims of halcyon days ahead for domestic banana cultivation and the industry.

It still very disheartening to note, that Saint Lucian farmers, after the debacle with the WTO, are sitting on their hands and exercising little leadership, but are waiting for a miracle, all hell-bent on remaining a no-value-added primary producers of banana fruit.

Anonymous said...

There are so many 'yet to dos'!...this clearly shows that these guys are not proactive 'leaders'.