For more than 11 years, Coquimba "had been selling its bananas fruit to Chiquita. Our financial nightmare began in January 2015, after the purchase by these Brazilian companies, as the new management of Chiquita began to lower purchase prices a lot. Additionally, they didn't give us an option to negotiate, which caused us to have big losses and other producers to stop selling their bananas to Chiquita," stated Jose Donoso Ubilla Gasteazoro, the president and representative of Coquimba.
According to Ubilla Gasteazoro, "the situation is so worrying that we filed an arbitration claim with the American Arbitration Association due to a breach of contract based on lack of payment and vices in the contractual consent to banana producers. We have decided to resort to the AAA to solve the conflict because it's what the contract we signed with Chiquita establishes."
According to the contract, every November, buyers and sellers meet to negotiate the prices of the following year, as well as the terms and conditions of the fruit's delivery. However, according to the producers, "in the last years prices have been decreased aggressively without giving us the option to negotiate. In addition the volumes purchased have also decreased, which has led to losses."
In addition, according to the information submitted, the multinational Chiquita would have contracted a seventy thousand six hundred ninety-one dollars and twenty-three cents debt with Coquimba, SA, which has not been paid for more than a year. "Coquimba SA has performed different actions to be paid what it is owed, including the hiring of a collection office that made different efforts, but the only answer it has received was a letter where Chiquita points out that Coquimba SA owes them $772,352 dollars for undelivered fruit, which is totally false," Ubilla Gasteazoro stated.
Chiquita International also owes US $93,755 to Agrícola El Cardón, SA, an amount that doesn't include derivatives of contractual violations, including interests, damages, and emerging damages.
Regarding Coquimba's case, Ubilla Gasteazoro said "we've already exhausted the administrative channel for the claim. This non-payment has had a very negative impact on our company, endangering our ability to pay workers and collaborators. The only option we have is to resort to the American Arbitration Association to solve our problem, as that's what the contract establishes." Ubilla Gasteazoro knows that this legal battle will be a David against Goliath battle.
Chiquita
We asked Chiquita for a comment on this process. However, they haven't issued any response so far. The global director of fruit sourcing of Chiquita, answered that they were aware that Coquimba had rescinded its contract and that they are selling fruit to other companies. He says that if Coquimba has any residual issues, he is sure that they will contact Chiquita through the usual business and legal channels.