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After mass layoffs at banana giant Chiquita’s Panama operation this summer threatened the popular fruit’s supply chains — with some experts even saying Canadians could see price increases — work is set to resume at the plant in Bocas del Toro.
Chiquita has agreed to restart operations, Panama’s government and the company said on Friday.
Swiss-based Chiquita plans to invest $30 million US to launch production again in the western province of Bocas del Toro, aiming to be operational by February 2026, according to a statement from Panama President Jose Raul Mulino, who travelled to Brazil to meet with the company.
“I will always stand for investment, production, and decent work for our people,” Mulino said in a statement posted on X.
“Now is the time to look forward and reorganize the country for the benefit of Panamanian families.”
Chiquita said it plans to create 3,000 jobs in the first phase of re-opening for cleanup and agricultural recovery, and add 2,000 workers for a second phase of harvesting and packaging.
Labour dispute could have meant higher prices: industry experts
In May, Chiquita fired more than 6,000 people in Panama after banana workers went on strike as part of nationwide protests over pension reform.
The labour dispute could have potentially meant fewer bananas and higher prices at the grocery store. Experts previously told CBC News it highlights the fragility of the global supply chain and how international events can affect what is available at your local stores.
Chiquita is one of the brands leading the global banana industry, and its bananas are sold in 47 countries, including Canada, according to its most recent sustainability report. Canada maintains a steady import supply of the popular and generally affordable fruit, according to Statistics Canada.
That said, the monthly average retail prices from Statistics Canada showed essentially no change in the price of bananas from May to June (Statscan doesn’t yet have data for July and August).