In Bocas del Toro Panama, Chiquita will Implement a Partnership Model
Sharecropping is a contract in which a landowner allows another party to exploit the land in exchange for a proportional share of the profits.
The Minister of Commerce and Industry, Julio Moltó, announced this Thursday that the company Chiquita Brands will reactivate its operations on the banana farms of Bocas del Toro under a sharecropping model. According to Moltó, the sharecropping model will allow Chiquita to transfer management of the farms to local producer associations, who will be responsible for their operations. The company will oversee the agricultural work and directly purchase all production, ensuring that it meets its quality standards.
The minister emphasized that this form of outsourcing is legal under Panamanian law. Sharecropping is a contract in which a landowner allows another party to exploit the land in exchange for a proportional share of the profits. This agreement was prompted by President José Raúl Mulino’s recent visit to Brazil, where a memorandum of understanding was signed facilitating Chiquita Brands’ return to the country. This agreement will recover approximately 5,000 jobs lost following the closure caused by an illegal strike. The total investment will be approximately $300 million.
