US fruit giant Fresh Del Monte inks 10-year banana supply deal with Vietnam’s THACO

The agreement was finalized at a ceremony on Wednesday in Ho Chi Minh City, where THACO is headquartered.

Under the deal, Fresh Del Monte, a global leader in the production, distribution, and sale of fresh and pre-cut fruit and vegetables, will purchase bananas from THACO AGRI, THACO’s agricultural arm, for a decade.

Purchases will begin with 71,500 metric tons in 2026, equivalent to about 3,575 containers, or roughly 12 containers per day.

Fresh Del Monte’s long-term target is to raise annual purchases to 240,000 metric tons, around 40 containers daily, which will require THACO AGRI to dedicate approximately 4,000 hectares to banana cultivation.

Both sides agreed on a strict performance mechanism.

If THACO delivers less than 90 percent of the committed volume or fails to meet quality standards, it will pay a penalty of US$1 per 13kg box.

Fresh Del Monte is subject to the same penalty if it fails to purchase the agreed volume.

Speaking at the signing ceremony, Tran Ba Duong, chairman of THACO, said Fresh Del Monte executives first visited THACO AGRI’s banana farms in 2023 for on-site assessments.

In 2024, he held further discussions with the group’s chairman on cultivation practices and quality control.

In August 2025, Fresh Del Monte began purchasing five trial containers per week to evaluate consistency, appearance, and overall quality.

Duong said the company later confirmed that THACO AGRI’s bananas met stability standards that many long-established producers have struggled to achieve.

He added that the 10-year deal reflects Fresh Del Monte’s confidence in THACO’s industrial scale production model and strict quality standards.

He stated that modern agriculture should focus on producing large volumes of fresh fruit with consistent, high quality, stressing that “only what cannot be sold fresh should go into processing.”

Mohammed Abbas, executive vice-president of Fresh Del Monte, said agricultural investment requires flexibility and strong adaptability to factors such as land conditions, climate, water resources, and labor productivity.

He noted that Vietnam possesses these advantages and is emerging as a potential fresh fruit supply hub in Asia.

Abbas added that while the Philippines once dominated global pineapple and banana exports, Vietnam and Cambodia are now well positioned to become major suppliers for Asian and Middle Eastern markets.

He highlighted that Fresh Del Monte was particularly impressed by THACO AGRI’s large-scale farming operations, modern management mindset, and the dedication of its young engineering workforce.

THACO AGRI’s bananas are being positioned in the premium segment and have already been well received in the Japanese market, Abbas added.

Founded in 1989, Fresh Del Monte now owns 40,000 hectares of banana plantations around the world and operates a distribution network spanning more than 80 countries.