Chiquita Tests Production as It Restarts Operations in Panama

2026-03-20

Chiquita has resumed limited banana production in Panama as part of a phased reactivation after shutting down operations in mid-2025 due to heavy losses and a union strike that led to 5,500 layoffs.

Since November, production has remained low and focused on the local market, allowing the company to test fruit quality and evaluate upgraded packing facilities. No export timeline has been confirmed, though the goal is to meet international standards.

Operations are restarting in Bocas del Toro under a new sharecropping model, where five companies manage labor while Chiquita provides technical support and marketing. This approach has enabled the hiring of over 1,800 workers so far, with plans to expand as activity increases in a region heavily dependent on banana production. The company aims to restore around 5,000 hectares of cultivation and has committed over $30 million in investments, including facility upgrades, agricultural supplies, and equipment such as a fumigation aircraft.

Bananas remain Panama’s leading export, accounting for 17.5% of foreign sales in early 2025. The reactivation is expected to gradually revive economic activity in the region, which was significantly impacted by job losses affecting up to 20,000 people.