Banana Sourcing Fresh Del Monte and THACO AGRI Forge Strategic Partnership
Fresh Del Monte Produce Inc. (NYSE: FDP), one of the world’s most prominent vertically integrated producers and distributors of fresh fruits and vegetables, has announced a major new strategic sourcing partnership with THACO AGRI, the agricultural division of Vietnam’s THACO Group. This collaboration represents a milestone for both companies as they work to strengthen long-term supply stability, expand agricultural innovation, and meet growing global demand for bananas and other tropical fruits.
The agreement was formalized during a signing ceremony held at the THACO Group headquarters in Ho Chi Minh City, Vietnam. Executives from both companies underscored the significance of the partnership, which is positioned as a multiyear commitment to broadening Fresh Del Monte’s global sourcing footprint—particularly throughout Southeast Asia, a region increasingly viewed as vital to the future of tropical fruit production.
Under the newly signed agreement, Fresh Del Monte will source bananas directly from THACO AGRI’s expansive farming operations across Vietnam and Cambodia. This long-term arrangement is expected to play a pivotal role in strengthening Fresh Del Monte’s ability to secure consistent, high-quality supply volumes amid global production challenges facing the banana industry. Additionally, THACO AGRI has committed to developing dedicated pineapple cultivation areas to meet Fresh Del Monte’s growing requirements for this key product line. These pineapple operations will be rolled out through a phased and structured development plan, ensuring that production quality, scale, and environmental considerations remain central throughout implementation.
Mohammad Abu-Ghazaleh, Chairman and CEO of Fresh Del Monte, emphasized the strategic value of the alliance. “Partnering with THACO AGRI is an important step in strengthening our sourcing capabilities in Southeast Asia,” he said. “Their scale and integrated-circular operations align with our long-term strategy to build a more resilient and diversified supply network.” Abu-Ghazaleh’s remarks reflect Fresh Del Monte’s broader objective of mitigating supply-chain risks associated with weather disruptions, disease pressures, and increased production costs in traditional banana-growing regions.
The global banana industry has been grappling with multiple challenges in recent years, including climate-driven yield volatility, logistical bottlenecks, and the spread of diseases such as Fusarium TR4. These disruptions have placed pressure on producers and multinational distributors alike, prompting companies to seek new supply partners in emerging growing regions with favorable climate, land availability, and production expertise. The Fresh Del Monte–THACO AGRI partnership directly supports this objective by creating a diversified sourcing structure less vulnerable to traditional geographic risks.
THACO AGRI’s contribution to this partnership is anchored in its sizable agricultural platform, which spans more than 85,000 hectares across Vietnam, Cambodia, and Laos. The company has built its reputation on a large-scale integrated-circular production model that combines fruit cultivation and livestock farming to promote sustainability, reduce waste, and improve farm efficiency. This model supports soil health, optimizes nutrient cycles, and lowers environmental impact—approaches increasingly favored by global agricultural buyers seeking sustainably grown products.
THACO AGRI’s vision is ambitious: the company aims “to become the leading agricultural corporation in ASEAN by 2027.” The partnership with Fresh Del Monte serves as a major step toward achieving this goal by integrating THACO AGRI into global supply chains and enabling the company to scale its export-oriented operations. Access to global markets through Fresh Del Monte—one of the most recognized fruit brands worldwide—will allow THACO AGRI to accelerate its growth strategy across Southeast Asia and beyond.
But the collaboration extends well beyond fruit sourcing. THACO INDUSTRIES, the mechanical engineering arm of THACO Group, is also poised to contribute to the partnership through mechanization, equipment development, and automation solutions tailored for modern agriculture. Leveraging THACO INDUSTRIES’ expertise, both companies will explore opportunities to integrate advanced machinery and mechanized systems across banana and pineapple cultivation sites. This includes technologies for land preparation, planting, harvesting, and post-harvest processing—all critical components for improving output consistency, labor efficiency, and product quality.
This integration aligns with broader industry shifts toward agricultural automation, especially as labor shortages, rising costs, and sustainability goals push producers toward more technology-enabled operations. THACO INDUSTRIES’ involvement could help Fresh Del Monte advance its long-term strategy to embed greater mechanization across its global supplier network, ultimately contributing to more resilient and productive supply chains.
From THACO’s perspective, the partnership marks a significant milestone in expanding its agribusiness capabilities. Tran Ba Duong, Chairman of THACO Group, expressed confidence in the value of the collaboration. “We highly appreciate our new partnership with Fresh Del Monte,” he said. “This partnership is an important step for THACO AGRI’s agricultural operations, and we look forward to building a stable, long-term collaboration that supports both organizations.” His comments reflect THACO AGRI’s commitment to developing globally competitive agricultural operations built on sustainability, technology innovation, and international cooperation.
The partnership also aligns with Fresh Del Monte’s corporate priorities, which include expanding its presence in emerging production regions and strengthening long-term sourcing stability. With increasing global demand for bananas—a staple fruit in households worldwide—Fresh Del Monte continues to diversify away from over-reliance on traditional producing countries in Latin America. Southeast Asia’s suitable climate, growing expertise, and government support for modern agriculture make it an attractive region for long-term investment.
Furthermore, the collaboration underscores both companies’ shared emphasis on responsible growth. Sustainable agricultural practices, supply-chain resilience, and investment in mechanization are central to the long-term viability of global fruit production. As environmental pressures and industry-wide challenges escalate, partnerships like this one offer a blueprint for how multinational companies and regional producers can work together to meet future food demand through diversified and modernized agricultural systems.
By combining Fresh Del Monte’s global distribution reach with THACO AGRI’s scale and innovative farming model, the two organizations aim to create a more stable supply environment—one capable of supporting long-term industry growth. Their collaboration is expected to not only increase the availability of high-quality bananas and pineapples but also set a new benchmark for strategic partnerships across the tropical fruit sector.
As Fresh Del Monte continues to expand its footprint in Southeast Asia, and as THACO AGRI pursues its goal of becoming a leading regional agricultural powerhouse, this strategic partnership serves as a forward-looking and mutually beneficial alliance grounded in shared values, long-term planning, and a commitment to modern, sustainable agriculture.
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