In order to get around the European Union's banana tariffs, which favour former colonies, Chiquita Brands International Inc. had made agreements with ESCOM in Angola and Mozambique's Matanuska Africa Limited to export bananas from those countries to its European markets.

The move will negatively impact the Latin American countries from which the company gets much of its fruit. ESCOM's subsidiary, the Agricultural Development Co. of Angola, will invest US$60 million to begin banana production in the country's Benguela province. ESCOM is a unit of Grupo Espirito Santo, a Portuguese company with interests in the financial, real estate and agribusiness sectors.

"We believe that starting banana production in Angola and Mozambique is an important strategic step that will be very cost-competitive regardless of the eventual outcome of the challenges to the EU tariff import regime," said Fernando Aguirre, chairman and CEO.

The company added that it is not providing capital for the projects but will support the development of banana production with resources like training, logistics, marketing and distribution. It expects to begin exporting to Europe in 2010.