Del Monte to open plant in Dubai Del Monte, the world's biggest fruit producer, will open its Dubai plant by December 2006. Del Monte, one of the world�s largest producers of fruits and vegetables, is set to open a production plant in Dubai as part of a plan to achieve significant growth targets in the Middle East in the next few years. The factory, which is being built on a 29,000 sq m plot of land in Dubai�s new fruit and vegetable market in Al Awir, will produce fresh-cut fruit, vegetable salads and fresh juices. The plant is expected to be ready by December 2006. Del Monte, which has marketed products in the Middle East since 1979, is currently working to drive sales and develop its brand presence in anticipation of production at the plant, according to Youssef Zakharia, Del Monte�s vice president for MENA. The new plant also forms part of a strategy to tap a growing market for added value fruit and vegetable products, such as fresh ready-to-eat pineapple and fruit salads. �We�re bringing in a lot of new added value products that didn�t exist before so we believe growth is going to be tremendous,� Zakharia said. �Very soon we�re going to launch a campaign for the brand image of Del Monte and I�m positive that with that we�re going to expand our presence and visibility all over the Middle East and North Africa.� Del Monte also has plans to open plants in Jordan and Algeria. These will differ from the Dubai plant by producing canned goods. The Jordan plant will serve the Levant region, while the Algerian factory will supply countries including Tunisia, Morocco and Libya. Tuesday, 9 May, 2006 http://www.itp.net/business/news/details.php?id=20621&category=
Not certain that I like this news. Of course the company has to plan for the future, but is now the time to be plowing money into the area with the uncertainy and rising borrowing costs?
With CQB I think that you could see a return to strong profitablility earlier due to the shorter growing period for bananas. FE vs FDPs expansion into processed foods have both been problematic.
Cut in dividend was obviously the last straw for many. We will see. I like this stock at this price but am in no rush to jump in with both feet till I see more numbers. Some trends are starting to look very positve. Take care my friend.