Chiquita has harvested its first bananas since reactivating operations in Panama, where the company had closed activities in mid-2015. At the time of the closure, 6,500 workers were laid off, and the company reported losses of US$75 million following a labour strike linked to social security reforms.
According to Chiquita Panama spokesperson Alexander Gabarrete, the current harvest is destined for the domestic market and was reported from one of the company's packing facilities in the western province of Bocas del Toro. The fruit is being packed at the El Empalme facility, which currently employs between 20 and 30 workers.
© Chiquita
"This serves two purposes: first, to carry out our first harvest, focused on the domestic market, and second, to observe the performance of the packing plants based on the maintenance and repair work that has been carried out," Gabarrete said. He added that the facilities had been closed for several months prior to the restart.
Panamanian authorities have indicated that banana exports are expected to begin in February. Before the labour action that took place between April and June last year, bananas were Panama's leading export product.
Previously, Chiquita operated around 5,000 hectares of banana plantations in Bocas del Toro under a concession model. Operations were suspended after the company's union, Sitraibana, initiated a strike that lasted about two months in protest against social security reforms that were already in effect.
Following negotiations with the government of President José Raúl Mulino, the company returned under a sharecropping model. Under this structure, Chiquita leases land to farmers without transferring ownership. The growers produce the bananas, which the company commits to purchasing and regulating according to its standards, as outlined in official information.
More than 1,600 workers have been hired as part of the reactivation process. This represents more than half of the 3,000 workers required in the first phase, which focuses on cleaning and maintaining the plantations. A second phase foresees an additional 2,000 jobs related to logistics and fruit production.
It has been estimated that Chiquita will invest US$30 million to restart production on 5,000 hectares of banana land under the new operating model, followed by export activity.
Source: Newsroom Panama
