CRISIS OVERVIEW: CHIQUITA BRANDS

Chiquita International Brands remains a major player in the profitable agribusiness industry in both South and Central America as the region progresses through the 2010s. Originating as the occasionally shady and certainly powerful United Fruit Company, Chiquita has maintained a strong hold in the so-called “banana republics” of Guatemala, Costa Rica and Ecuador even after the corporation’s tranformatic name change in 1984. As the region gets more volatile with the Venezuelan crisis and Bolsonaro’s rocky regime, the future for Chiquita is uncertain yet packed with opportunity. Throughout the weekend delegates will have to use their powers to both benefit the Chiquita brand and whatever else they see fit to their own agenda.

COMPANY OVERVIEW

Understanding Chiquita’s historical influence in South and Central America is key to understanding their current power in the region. The United Fruit Company’s involvement in the Guatemalan coup in the 1950s, their monopolistic swallowing of 23 smaller banana companies in the late 20th century and Chiquita’s relationship with paramilitary groups in Colombia and Costa Rica all show the might of United Fruit’s reign over the banana industry. Furthermore, the famous United Fruit nickname “El Pulpo” (“the octopus”) is indicative of their power, influence and ubiquitous relevance in the region.

The power of El Pulpo has not slowed down in the 21st century. Chiquita remains a top member of the world’s 4 top banana companies --Dole, Del Monte, Chiquita and Fyffes, and bananas are the top export of both Guatemala and Costa Rica. Thus, Chiquita’s influence in Central American economies cannot be understated, and their role in Central American crime and politics is large.

Delegates representing individual states as ambassadors and general board members must decide how they want to either expand Chiquita’s role in Latin American governments or reduce their influence, as this will be crucial to tackling crises on a state-wide level. Do you want to work with the political parties and leaders in power as El Pulpo has historically done? Or will you stand with your farmers and workers as they rise up and demand change across Latin America? These decisions will be crucial, and they will be made throughout the course of this crisis committee.

In 2001, 3,000 AK-47 assault rifles and 5 million rounds of ammunition passed through ports that Chiquita owned in colombia territory originally meant for the right-wing Colombian paramilitary and drug trafficking United Self-Defense Forces of Colombia (Autodefensas) group. Additionally in 2018, the banana corporation was accused of sending material support to FARC, the radical rebel group turned political party in Colombia. Families of six U.S citizens who held the company liable for the FARC’s killing of six Americans settled with Chiquita in court. Delegates should take note of these instances of corruption, and consider how they want to either use this power to their advantage or rid the company of its’ shady roots. Many of them will have built-up relationships with prominent government leaders and diplomats with sway to change national policy, and should take this power seriously.

As the leading banana distributor of bananas in the United States, Chiquita’s power in the stock market and finance is large. Delegates must consider the 2014 complete acquisition of Chiquita by Cutrale-Safra for a $611 million price tag, which is an international network of companies in agribusiness, industry, real estate and more.

As Latin America moves to address ongoing crises, Chiquita remains an intriguing player in the geopolitical realm. With an uprising in Chile, fires in the Amazon, a crisis in Venezuela and protests across Central America, Chiquita’s business decisions made in the next few months could determine their future success as a company for the next few decades.

A deep knowledge of individual portfolio powers will be key to success, and collaboration will be necessary to halt any upcoming issues or mend any current ones in Chiquita’s structure. REFERENCES

Chiquita accused of funding Colombia terrorists. (2011, May 31). Retrieved from https://www.cbsnews.com/news/chiquita-accused-of-funding-colombia-terrorists/.

Cutrale Group, & Safra Group. (2018, June 28). The Cutrale-Safra Groups Complete Acquisition of Chiquita. Retrieved from https://www.prnewswire.com/news-releases/the-cutrale-safra-groups-complete-acquisition-of-chiqui ta-300016760.html.

OECD (2019), OECD.Stat, (Bananas and Plantains). Accessed on 4 November, 2019