Chiquita Banana Ceases Operations in Panama

Chiquita Banana Shuts Down in Parts of South America — What Really Happened?

June 2025 – Bocas del Toro, Panama — After decades of dominance in the global banana trade, Chiquita Brands has abruptly pulled the plug on much of its operations in Panama, laying off thousands of workers and closing major plantations. The move shocked locals and left analysts scrambling to understand why one of the biggest names in fruit would walk away from a key region in the banana belt.

The reasons, it turns out, are layered — and not just about money.

Strikes, Spoiled Fruit, and Millions Lost

It all began with a labor strike in late April, as workers demanded long-promised pension reforms. Protests escalated, roadways were blocked, and operations ground to a halt. Bananas rotted in warehouses or never made it to market. Chiquita says it lost at least $75 million, with over 900,000 boxes of fruit damaged or destroyed. By early June, the company had enough — shutting down two plantations, moving admin teams to Costa Rica, and firing over 5,000 workers.

Legal Baggage and Bad Press

But the strike wasn’t the only weight dragging Chiquita down. The company was recently hit with a U.S. court ruling ordering it to pay nearly $40 million to families of Colombian victims killed by a right-wing militia the company once financed. That verdict, which reignited decades-old scandals, raised serious concerns about Chiquita’s conduct in Latin America.

Legal experts believe more lawsuits may follow — especially around past use of toxic pesticides, some of which have been banned due to health and environmental risks. With governments and advocacy groups paying closer attention, the pressure is mounting.

Global Costs and Changing Climates

Running a banana empire isn’t as cheap as it used to be. Between rising labor costs, fuel prices, stricter regulations, and climate shifts affecting crops, profit margins are shrinking. Diseases like fusarium wilt are threatening banana plants across the tropics, requiring new investment and innovation — something Chiquita may no longer find worth the risk in certain regions.

Too Big, Too Greedy?

Critics argue that Chiquita’s departure is the latest example of corporate greed gone wrong. For years, the company enjoyed near-monopoly power in parts of Latin America, often accused of exploiting workers and local governments. When things finally got tough — whether through protest, lawsuits, or changing market dynamics — it chose to leave instead of reform.

Others believe it’s simply a strategic retreat: regroup, cut losses, and focus on more stable regions like Costa Rica and Ecuador.

What’s Next?

For Panama, the sudden exit is devastating. Entire communities in Bocas del Toro relied on the banana economy. Local officials are now scrambling to replace jobs and attract investment.

For Chiquita, it’s a moment of reckoning. The company says it might return in the future — but trust has been broken, and competitors are already moving in to fill the gap.

And for the banana-loving public? Expect higher prices at the store and fewer options for now. The banana wars are far from over — they’re just moving to a new phase.