Trading by Fyffes remains within expectations, chairman Carl McCann told yesterday's annual general meeting, despite a previous warning that 2006 earnings could be affected by higher tariffs and other costs.

The company has said that an EU decision to increase import tariffs on bananas could increase duty costs by almost €40 million per year in Fyffes's tropical fruit division.

Higher fruit, shipping, fuel costs and "less favourable exchange rates" could also increase costs by €15 million, according to the company.

Mr McCann told shareholders that Fyffes saw "strong results" in 2005.

Despite last month's warning that highlighted the potential impact of new tariffs and fuel costs, Mr McCann said that trading in the first two months of the year remained in line with expectations.