WIBDECO

 

IRDCs                                    PRESS RELEASE                                                                              
                                                                                             21,February 2002

 The process of receiving bananas at Inland Reception and Distribution Centres (IRDCs) has begun. Three Centres, one each at Odsan, La Caye and Port Vieux Fort, had been constructed by the Government of St. Lucia with funds provided by the European Union.

The Windward Islands Bananas Exporting and Development Company (WIBDECO) says the Company began receiving fruit at the La Caye IRDC last week and this week banana operations would be moved out of Castries completely with reception of fruit at the second center located in Odsan.


Dr. Errol Reid, WIBDECO's Director of Operations said what this means is that most farmers would have shorter distances to travel to sell their fruit, which should save them money. Secondly, farmers would now operate in a more relaxed environment unlike having to queue along the public road when delivering their bananas at the Castries port.


Dr. Reid said the IRDCs have better surroundings and areas for parking, so things would move a lot faster than at Castries port, resulting in a quicker turn around time for farmers.

He spoke of the streamlining of the IDRC operations with the installation of modern equipment and noted that the buildings had been constructed so that the fruit would move at a quicker pace resulting, ultimately, in lower handling cost from the farm to the vessel taking the bananas to the market in Europe.


Under the new arrangement, all bananas produced in St. Lucia will be loaded and shipped from the Vieux Fort Port. Dr. Reid said WIBDECO had taken steps to ensure that fruit arriving at Vieux Fort are well controlled so that no bottlenecks were created.


He noted some of the drawbacks to the Castries port operation, recalling that on reception days there were long lines of vehicles with bananas causing congestion, and farmers remaining on the line for several hours resulting in inefficient utilization of their time.

Dr. Reid said that moving to one port had paid off in the sense that the overall cost of transporting bananas from farm to reception station, receiving and loading bananas in St. Lucia would be brought down. "Handling bananas at two ports carries overheads which would be reduced significantly", he said.  It also took care of the vessel having to travel to two ports.


He noted that the move to single port loading in St. Lucia was a new learning experience for WIBDECO and the banana companies. While the company had planned for the foreseeable problems, there were a few “hiccups” in the first two weeks which slowed the rate of loading and prompted WIBDECO to hold back some fruit in refrigerated containers for shipment the following week, so as to facilitate the timely departure of the vessel to the next port of call. However, the experience paid off and the latest reception and loading of all bananas were achieved well within the time expected with no significant problems. Dr. Reid noted that the need to hold fruit back for shipment the following week in no way affected the price paid to the banana companies and therefore should have no impact on prices to banana farmers.


Said the WIBDECO official: "When the entire system is functioning fully we
anticipate a lower cost in the operations than we have had in the past. WIBDECO has calculated that there would be a direct saving of over $ 770,000 per year and potentially, another $940,000 per year saving to farmers due to reduced transport charges from farm to reception centres. Furthermore, the consolidation of loading at one port will reduce the time spent collecting bananas in the Windward Islands and allow the addition of another port of call in the Dominican Republic. This will mean better use of the ship’s capacity resulting in some 1.4 cents/lb savings in freight charges, or some $ 1.5 million per year.” “He noted that the savings resulting from the cost reduction will be passed on to the banana companies and ultimately should reach the banana farmers”.  

(ends)

PRESS RELEASE

NEW SHIPPING ARRANGEMENTS FROM JANUARY 11, 2002

The Windward Islands Banana Development and Exporting Company, WIBDECO wishes to announce that there will be major changes to the shipping schedule resulting in new banana reception arrangements throughout the Windward Islands. The new shipping schedule which will become effective from January 11, 2002 has been bought about as a result of the significantly reduced production levels in the sub region which have forced WIBDECO to undertake joint shipping arrangements with Fyffes which purchases fruit from other Caribbean Banana Producers.

The objective of this measure is to minimize any increase in freight charges to the industry and avoid a reduction in the proportion of the price paid to growers. Based on arrangements with Geest at the commencement of 2001, WIBDECO pays a rate of 2.62 per box of bananas transported to the UK for that year but this freight rate became uneconomical to Geest since actual production levels fell significantly short forecasted levels resulting in the inefficient use of contracted shipping space. As a result it was necessary for WIBDECO to enter negotiations with Geest and its business partner Fyffes to arrive at reasonable freight rates for Windward Islands Bananas. At the end of those negotiations it was concluded that the most practicable means of maintaining reasonable and cost effective freight rates was to enter a joint shipping arrangement with Fyffes resulting in the use of an additional vessel and adjustments to reception period in the islands.

Each week with effect with January 11, 2002 the vessel will call into port in St Vincent every Saturday, Grenada on Sundays, Vieux Fort, St Lucia on Tuesdays and Roseau Dominica every Wednesday. Under the new arrangements there will be no loading at Port Castries and as such all of St Lucia's fruit will be loaded at Port Vieux Fort.

Banana reception will be adjusted as follows;

St. Vincent - Fridays and Saturdays commencing January 11, 2002.
Grenada - Friday, with effect from January 11, 2002.
St.  Lucia - Mondays and Tuesdays effective January 14, 2002.
Dominica - Wednesdays commencing January 15, 2002.

WIBDECO does not expect that these arrangements will bring about any major inconvenience to farmers and other and looks forward to the understanding and cooperation of all farmers and other persons involved in the industry.

WIBDECO

December 21, 2001
 

 

Press Release

WIBDECO IS ALARMED BY REPORTS.

WIBDECO has heard in the broadcast media, reports of an offer by Libya to purchase bananas from the Windward Islands. The Company has not been contacted, formally or informally, by any local or regional body on the matter and is therefore not in a position confirm whether or not such an offer had been made. 

However, diversion of significant of quantities of bananas from our traditional market in the UK will be devastating to WIBDECO’s ability to continue marketing Windward Islands bananas both in the immediate and long term. Banana production in the Islands is at an historic low at this time and this is posing a tremendous challenge to WIBDECO to hold onto our current market share; we have been able to do so only through the partnership and understanding we had built with our customers over the years. 

Some of our customers and associates in the UK market have heard and read of these reports in the UK Press and have been expressing their concerns to WIBDECO; indeed, from comments received so far it is clear this could do untold damage to the marketing of Windward Islands bananas in the UK. These reports have cast a shadow over the marketing of Windward Islands bananas in the UK and our customers are naturally concerned about their continued access to these fruit. It is not hard to believe they are now considering their options. 

Also, WIBDECO has invested substantial financial resources in the marketing of Windward Islands bananas, including over ₤ 20M ($ 80M) in the joint purchasing of Geest Bananas with Fyffes Ltd, and other significant costs in establishing itself as an UK importer of bananas. These investments will be substantially or completely devalued if the marketing of Windward Islands banana in the UK is terminated. 

WIBDECO is particularly alarmed by the reports’ adverse impact on its customers and associates and has been working to address their queries and concerns. 

ENDS 

WIBDECO, September 11, 2001

Press Release

The Windward Islands Banana Development & Exporting Company (WIBDECO) view with utter disbelief the statement issued by the Saint Lucia Banana Corporation (SLBC) on the proposed bonus payment to banana growers of the Windward Islands.

The facts of the matter, which are very well known to the management of SLBC, are:

  1. WIBDECO and Fyffes, through their joint-venture, have agreed to make a bonus payment to banana growers, in the sum of £1.0 million, based on their 1999 output, to assist them in improving production and quality.
  1. All banana growers who sold bananas in 1999 will qualify for payment, regardless of which company they sold to.
  1. The payment is intended for the banana growers and not for the local banana companies, but it was recognised that, from a practical point of view, the payment would have to be made through those companies.
  1. Each of the local companies was required to provide production information for each of its growers so that the amount payable to each one could be calculated and the payment made to the companies on behalf of those growers.
  1. All the local banana associations and companies of the Windward Islands, with the exception of SLBC, have complied with this requirement and are awaiting the payment on behalf of their growers.
  1. SLBC's opposition has nothing to do with what is claimed in their statement. Indeed, a note of 17 March 2000, from WIBDECO, addressed to the General Manager of SLBC stated unambiguously,

    "Payment will be made to the respective companies, against a list of growers and the amount to be paid to each. The companies shall receive the amounts on behalf of the growers listed."

  1. This fact was conspicuously absent from the statement by SLBC. Instead, the SLBC statement said,

    "… due to the corporation's refusal to abide by the dictates of WIBDECO, farmers selling to the SLBC will not receive any portion of this payment".

  1. Contrary to that statement, at least £388,000 (EC$1.67 million) is earmarked for payment to SLBC on behalf of the growers who sold to that corporation in 1999.
  1. It is ludicrous for SLBC to assert that the payment constitutes "unfair business and trade practices" or that it is "anti-competitive", because the payments are to be made:
  1. to all banana growers, without exception, on an equitable basis;
  2. on historical production, when SLBC was also selling to WIBDECO; and
  3. through the local companies, including SLBC.
  1. SLBC has accepted all the conditions of payment, except that it does not want the payment to be made against the list of growers with their individual entitlements.

SLBC's genuine opposition is to have to receive the payment on behalf the growers. Its hidden, but real, intention is to retain the payment and to deprive the growers of what is justifiably theirs.

WIBDECO operates a policy of non-discrimination in looking after the interests of the banana growers, whatever the local company through which they trade.

If SLBC were sincerely interested in the welfare of the growers, it would act with promptness to ensure that there was no delay in its own growers receiving this well-deserved bonus. Its refusal to provide the necessary information, to allow the individual growers' entitlements to be calculated, will not delay the payment to the other companies or, indeed, to growers who, on their own, can supply the necessary information.

Castries, Saint Lucia. 10 April 2000

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