Fresh Del Monte Produce (NYSE: FDP) CEO Mohammad Abu-Ghazaleh says banana prices will have to rise after years staying still despite inflation and higher production costs.

In a conference call for its first quarter results this week, the executive said the current state of banana selling prices could not be sustained.

"When I said we have to increase prices, I meant for North America in particular because the other markets are not contractual, and we gain on the spot actually; when the market is high we make our money, and when markets are soft we can still survive," he said.

"But in North America since everything is contracted we have very little room to enjoy high markets during the shortages and still have to supply our customers even though we face so many issues.

"Like we said we have incurred tremendous costs during that quarter just to secure volumes to satisfy our customers and their contracts, which, in my opinion, you know, it is unfair because we have incurred tens of millions of dollars to be able to meet our contractual demand, and that has a cost, and I believe that this cost should be reflected in the price."

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