Del Monte, Panama sign contract on banana production

Del Monte has entered a 20-year contract with Panama to produce bananas in the Baru district in the province of Chiriqui.

Juan Carlos Varela, the president of Panama, recently approved the deal, according to a news release May 25 from the office of the president. The initial investment by Del Monte will be $100 million.

“The area’s long history of banana cultivation and the unparalleled expertise of our production teams in Latin America gives us the confidence that this new operation will soon be an example of modern banana farming,” said Dennis Christou, vice president of marketing for Del Monte.

“The amount invested will depend on the specific on-the-ground needs for the introduction of modern banana agricultural practices necessary for the production of premium quality Del Monte bananas,” Christou said.

The business Del Monte will bring to the region is expected to create 3,000 jobs directly and more than 12,000 indirectly, according to the release. Christou said the total number of jobs created and when those will begin depends on when project reaches full production capacity.

The contract between Panama and Banapiña Panamá S.A., a subsidiary of Del Monte, is for 20 years with an option to extend.

The project will be carried out in stages of 800 hectares (about 2,000 acres) per year, and it is estimated that yield will be 2,725 boxes per hectare per year, according to a news release from the National Assembly of Panama, which approved the contract in late April.

Del Monte declined to confirm those numbers, but Christou expressed optimism about the potential of the region.

“We are confident that, with the expertise of our banana production management teams, this operation will quickly become a model of agricultural efficiency providing outstanding yields,” he said.

It is too early to give a precise date for when Del Monte will ship its first crop from the region, Christou said.