Fresh Del Monte to lay off 850 workers in Costa Rica with closure of four banana farms 

Global produce giant Fresh Del Monte is closing four banana farms in Costa Rica, comprising nearly 3,000 acres and equivalent to three percent of the company’s operation in the Central American country. 

According to a statement issued by the firm and distributed by local media, the strengthening of the local currency against the US dollar has risen production costs, tightening margins for Fresh Del Monte.

About 850 workers, representing 5.3 percent of the country's banana labor force, will be laid off following the closure, according to Radio France Internationale.

The farms are located in the province of Limón, in Costa Rica’s Atlantic region.

Tighter margins are forcing a slimmer operation for Fresh Del Monte

In the press release, Jorge Peláez, Senior Vice President of Fresh Del Monte for Colombia, Brazil, Ecuador, and Central America, explained that the weakening of the US dollar is the main driver behind the shrinkage of the company’s operations in Costa Rica.

"For export producers, the impact is direct: income is generated in dollars, while most costs are assumed in colones. As the local currency strengthens, each dollar generated translates into fewer colones, at a time when production costs continue to rise," he said.

According to EFE, the value of the US currency has fallen steadily since 2022. In April 2026, the dollar closed at $456.95 colones, a 34.5 percent drop from 2022. However, this difference has reached 450 colones on occasion.

In 2026, the US dollar opened at 501.42 colones and has so far accumulated a drop of nearly nine percent.

"This is an extremely difficult time for our teams and for the communities of which we have been a part for many years," Peláez said.

The statement emphasizes that with prices fixed in dollars and a limited capacity to adjust them, "the combination of these pressures has significantly increased production costs, generating a cumulative effect on margins that is increasingly difficult to absorb".

In addition to the exchange rate, the company also cited other drivers of its decision, including the spread of Black Sigatoka and the increase in agricultural input prices, a situation that has worsened as a result of the conflict in the Middle East.

*All images courtesy of Fresh Del Monte via LinkedIn.

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