Dole CEO confident market can absorb price adjustments

Dole CEO confident market can absorb price adjustments

Dole CEO confident market can absorb price adjustments

Dole Plc’s CEO Rory Byrne that the firm has been successful in getting price adjustments through, but said that the market is in a period of adjustment as consumers are reacting to having less buying power.

Byrne told analysts on the company’s Q1 results call that it has been able to adjust both short term pricing as well as annual pricing contracts, even though it is still feeling inflationary pressures from the market, although there is not a strategic shift in demand.

“There's a complex process underway at the moment. In terms of elasticity, no material changes in demand due to neither up nor down; the consumers are pretty much adapting to the new prices out there,” Bryne said.

Dole had its challenges during the quarter due to a recall of its salads which cut into its results, as well as a decrease in the sales volume of fresh fruit. But company management said that its diversified business strategy, and specifically its commercial cargo business has been thriving in the current environment.

“As global logistics have become increasingly challenging over the last 24 months, this business has provided help in offsetting some of the significant increased costs we have ensured in the third-party shipping market,” Byrne said.

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