Fresh Del Monte Produce will close four banana farms in Costa Rica’s Atlantic Region, affecting approximately 1,200 hectares of production and more than 850 workers in one of our country’s most important agricultural exports. The company said the decision was driven by deteriorating business conditions for banana production in Costa Rica, led by the sharp appreciation of the colón against the dollar.
The exchange rate has moved from around ₡700 per dollar in recent years to close to ₡450, cutting the local-currency value of export revenue while many costs, including wages, services, and local inputs, remain in colones. “This is an extremely difficult time for our teams and for the communities we have been a part of for many years. More than 850 people are affected, and we recognize the real human impact this represents,” said Jorge Peláez, senior vice president of Fresh Del Monte for Colombia, Brazil, Ecuador, and Central America.
The closure adds to a growing debate over Costa Rica’s strong currency and its effect on exporters, especially companies that sell in dollars but operate with local costs. For agricultural producers, the problem is direct: each dollar earned abroad now converts into fewer colones at home, while production costs have continued to rise.
Fresh Del Monte also pointed to higher pressure from plant diseases, including Black Sigatoka, as well as preventive measures tied to the threat of Fusarium TR4. Fuel, logistics, agricultural materials, and disease-control costs have added more pressure to an industry already operating on thin margins.
The company said this is not a problem of demand or productivity, but a structural shift in operating conditions. In practical terms, farms that were profitable a few years ago are now losing money under the current exchange rate and cost structure.
The announcement comes as Fresh Del Monte reported weaker first-quarter results for fiscal 2026. Net sales fell to $1.044 billion, down 4.9% from the same period in 2025. Net income attributable to the company dropped to $10 million, compared with $31.1 million a year earlier. The company cited several pressures, including asset impairment charges, supply chain disruptions in the Strait of Hormuz, and the unfavorable impact of a stronger Costa Rican colón.
In the banana market, Fresh Del Monte reported first-quarter net sales of $357.1 million, down from $363.8 million in the same period last year. The company said banana sales were affected by lower volumes in Asia and North America, partly offset by higher unit prices across its regions. Banana gross margin remained tight at 4.6%.
The cuts also land in a area that remains central to Costa Rica’s rural economy. Bananas generated about $1.11 billion in exports in 2025, making them our country’s second-largest agricultural export after pineapple, which brought in about $1.4 billion. For the Atlantic Region, the impact will be felt beyond the farm gates. Banana plantations support direct jobs, suppliers, transport services, and local commerce in communities where agricultural employment remains a key source of income.
Fresh Del Monte’s decision is likely to increase pressure on Costa Rican policymakers from exporters who argue that the strong colón is making parts of the agricultural sector harder to sustain. For workers and communities tied to the four farms, the immediate concern is more basic: hundreds of families now face the loss of steady employment in one of Costa Rica’s historic banana-growing regions.
