Chiquita Reaches Banana
Deal with Panama
Producers
Chiquita Brands
International Inc. has
reached a deal with
Panamanian farmers after
a protracted dispute
that will ensure banana
supply until 2008.
The agriculture ministry
said Panama's main
banana producing
cooperative, Coosemupar,
had agreed to sell
Chiquita a 19.2 kg box
for $6.50, a one dollar
increase on the current
contract.
Chiquita sold Puerto
Armuelles Fruit Co to
Coosemupar in 2003 and
since then has had
tempestuous relations
with the cooperative.
The bananas Chiquita
buys from Panama account
for about 5 percent of
its total in Latin
America.
Coosemupar had suspended
deliveries to the
company during the
negotiations and in
November gave away about
20,000 bananas in Panama
City in protest against
the price Chiquita was
offering.
Panama produced 440,000
tonnes of bananas in
2006, according to
United Nations figures.
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