Fresh Del Monte Produce Inc. (NYSE: FDP) entered into a long‑term sourcing agreement with THACO Agri, the agricultural arm of Vietnam’s THACO Group, on November 26, 2025. The deal secures banana supplies from THACO’s operations in Vietnam, Cambodia, and Laos and establishes dedicated pineapple cultivation areas to meet FDP’s growing demand for high‑margin, value‑added products.
The partnership is driven by rising global production challenges, notably the spread of Fusarium wilt (TR4) and Black Sigatoka that have eroded yields in traditional banana‑producing regions. By anchoring supply in Southeast Asia, FDP aims to diversify its risk profile, reduce exposure to disease‑hit areas, and stabilize input costs. The agreement also aligns with FDP’s broader strategy to shift toward higher‑margin categories, as pineapple is a key driver of its value‑added portfolio.
FDP’s Q3 2025 results provide context for the partnership’s significance. The company reported adjusted earnings per share of $0.69, beating analyst expectations of $0.50 by $0.19, a 38% beat. Revenue was $1.02 billion, slightly below the consensus estimate of $1.04 billion, reflecting a modest 1.5% decline from the prior quarter. The fresh and value‑added products segment saw margin expansion to 11.2%, while the banana segment’s gross margin contracted to 1.3%, underscoring the need for a more resilient supply base.
THACO Agri manages over 85,000 hectares across Vietnam, Cambodia, and Laos, operating an integrated‑circular and organic production model. The company’s banana and pineapple output is already exported to key markets in the United States, Europe, and Japan, and the partnership will expand that footprint. The scale of THACO’s operations provides FDP with a reliable volume base and the flexibility to adjust production in response to market demand and disease pressures.
Management emphasized the strategic fit of the deal. FDP Chairman and CEO Mohammad Abu‑Ghazaleh said the partnership “strengthens our sourcing capabilities in Southeast Asia and aligns with our long‑term strategy to build a more resilient and diversified supply network.” THACO Chairman Tran Ba Duong echoed the sentiment, noting the collaboration “is an important step for THACO AGRI’s agricultural operations.” The agreement signals FDP’s continued focus on operational efficiency, cost control, and portfolio optimization in a challenging commodity environment.
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