Banana production in Panama facts for kids
Banana production in Panama has been a very important part of the country's economy for a long time. It started becoming a big deal around the early 1900s.
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Bananas and Panama's Economy
Bananas used to be Panama's main export. In 1985, they made up 23 percent of all exports, bringing in about US$78 million.
At that time, a company called Chiriquí Land Company produced most of Panama's bananas. This company was part of a bigger company called United Brands (which used to be United Fruit Company). They grew 70 percent of the bananas. Other Panamanian farmers grew 25 percent, and a government company called Corporación Bananera del Atlántico grew 5 percent.
The amount of bananas Panama produced was highest in 1978. After that, it slowly went down in the 1980s. Some people thought United Brands might not grow more bananas in Panama. This was because it was cheaper to grow them in countries like Costa Rica and Ecuador.
History of Bananas in Panama
The story of banana growing in Panama is closely linked to United Brands. This company has been in Panama since 1899. They built important things like railroads, port facilities, and storage areas. These were all needed to process and ship bananas.
Fighting Banana Diseases
In the 1930s, a serious plant disease greatly reduced banana production. Later, in the 1950s, another disease caused by a fungus started killing banana crops. To solve this problem, Panamanian farmers switched to growing Cavendish bananas. This type of banana was not affected by the disease.
The "Banana War"
In the early 1970s, something called a "banana war" happened. This was a disagreement between countries that grew bananas and United Brands. They argued about how much tax should be placed on bananas that were exported. Panama even threatened to take over United Brands' farms.
Eventually, in 1976, they reached an agreement. A tax was put on banana exports. That year, this tax brought the Panamanian government about US$10 million. This was almost 4 percent of all the government's money.
Also, United Brands sold all the land it owned in Panama to the government. This was about 43,000 hectares (which is like 106,000 acres). The company was paid with tax credits. The government then leased back over 15,000 hectares (about 37,000 acres) to United Brands. This land was used for growing and exporting bananas. The extra land went to new banana companies started by the government.
Recent Developments
More recently, on June 1, 2017, a company called Del Monte started a 20-year agreement with Panama. They plan to grow bananas in the Barú district, which is in the Chiriqui area. Panama's President, Juan Carlos Varela, approved this deal.
