Del Monte Taps Vietnamese Giant to Fortify Global Fruit Supply

HO CHI MINH CITY, Vietnam – November 26, 2025 – In a move that signals a significant strategic shift in the global produce landscape, Fresh Del Monte Produce Inc. has entered into a major long-term partnership with THACO Agri, the agricultural arm of Vietnamese conglomerate THACO Group. The agreement, centered on sourcing vast quantities of bananas and pineapples from Southeast Asia, is more than a simple supply deal; it is a calculated response to the mounting pressures of disease, climate change, and supply chain fragility that threaten one of the world's most popular fruits.

Announced today at the THACO Group headquarters, the partnership grants Fresh Del Monte access to THACO Agri’s sprawling, technologically advanced farming operations in Vietnam and Cambodia. While initially focused on bananas, the deal includes a phased roadmap for THACO Agri to develop dedicated pineapple cultivation areas to meet Del Monte's future demand. This collaboration aims to bolster Del Monte's global sourcing footprint and deepen its presence in the rapidly growing Asian market.

“Partnering with THACO AGRI is an important step in strengthening our sourcing capabilities in Southeast Asia,” said Mohammad Abu-Ghazaleh, Fresh Del Monte’s Chairman and CEO, in a statement. “Their scale and integrated-circular operations align with our long-term strategy to build a more resilient and diversified supply network.”

A Strategic Hedge Against a Brewing Storm

To understand the gravity of this partnership, one must look at the precarious state of the global banana industry. For years, experts have warned of a perfect storm of threats, and this deal is a clear attempt by Fresh Del Monte to navigate it. The most existential of these threats is Fusarium Wilt Tropical Race 4 (TR4), or Panama Disease, an incurable soil-borne fungus that is lethal to the Cavendish banana, the variety that accounts for nearly all global banana exports.

TR4 has been devastating plantations across Asia, the Middle East, and Africa for decades. Its recent arrival in Latin America—the heart of global banana production—with confirmed outbreaks in Colombia, Peru, and most recently Ecuador in September 2025, has sent shockwaves through the industry. The fungus can survive in soil for decades, rendering entire farms useless and forcing costly biosecurity measures that drive up production costs even in unaffected areas. Fresh Del Monte’s move to diversify its sourcing portfolio into Vietnam and Cambodia is a direct hedge against the catastrophic potential of TR4’s spread in its traditional Latin American strongholds.

Beyond disease, climate change poses an “enormous threat” to banana cultivation. Rising temperatures, unpredictable rainfall, and an increase in extreme weather events like hurricanes and droughts are reducing yields and degrading fruit quality. Studies project that vast swathes of current banana-growing regions could become unsuitable by 2080. Compounding these environmental challenges are soaring costs for fertilizer, fuel, and shipping, which squeeze already thin profit margins for producers. By partnering with a large, integrated, and geographically distinct producer, Fresh Del Monte is building a critical buffer against this multi-faceted volatility.

Vietnam's THACO Agri: An Integrated Agricultural Colossus

At the heart of this partnership is THACO Agri, a relatively young but colossal player with ambitions to become the leading agricultural corporation in the ASEAN region by 2027. A subsidiary of the diversified THACO Group—which started in automotive and now spans mechanical engineering, logistics, and construction—THACO Agri operates on a scale that is difficult to comprehend. It manages over 85,000 hectares of agricultural land across Vietnam, Cambodia, and Laos.

What sets THACO Agri apart is its “integrated-circular agriculture based on organic principles.” This is not simply large-scale farming; it is a closed-loop ecosystem. The company cultivates massive monocultures of bananas and pineapples alongside other fruits, but it also integrates extensive livestock farming, including cattle and pigs. In this model, waste becomes a resource: by-products from fruit cultivation are used as animal feed, and manure from the livestock is processed into organic fertilizer for the crops. This system is designed to maximize efficiency, minimize waste, and reduce reliance on external chemical fertilizers.

“This partnership is an important step for THACO AGRI’s agricultural operations, and we look forward to building a stable, long-term collaboration that supports both organizations,” stated Tran Ba Duong, THACO’s Chairman. For THACO Agri, the deal is a powerful validation of its model and a gateway to the global market, leveraging a partnership with one of the world's most recognized fruit brands to fuel its aggressive expansion plans, which include growing its banana cultivation to 20,000 hectares.

The Engine of Growth: Mechanization and Technology

A crucial, and perhaps transformative, element of the agreement is the involvement of THACO INDUSTRIES, the group’s mechanical engineering sub-holding. The partnership explicitly includes collaboration on mechanization and automation solutions to enhance agricultural productivity. THACO INDUSTRIES already serves as the in-house engine for THACO Agri, designing and manufacturing a comprehensive range of agricultural equipment for every stage of production—from soil tillage and irrigation systems to specialized harvesters and automated post-harvest processing lines.

On THACO Agri’s farms, this integration is already visible. Mechanization is applied from land preparation to harvesting and packing, where ABB robotic arms are used to improve efficiency. This synergy between heavy industry and agriculture allows for a level of control and efficiency that few agricultural operations can match. By replacing manual labor with machinery, the company has enhanced productivity, reduced costs, and shortened crop cycles. This focus on technology provides a powerful tool to combat labor shortages and drive the operational excellence needed to compete on a global scale.

Reshaping Southeast Asia's Agricultural Landscape

This partnership does not exist in a vacuum. It aligns perfectly with Vietnam's emergence as a major force in global agriculture. In 2024, Vietnam became China's top supplier of bananas, and its total banana export turnover is nearing $400 million annually, making it the world's ninth-largest exporter. This deal with Fresh Del Monte will only accelerate that trajectory, providing a stable, high-volume channel to Western markets.

The global market for tropical fruits is projected to reach $6.3 billion by 2029, with the Asia-Pacific region expected to be the fastest-growing market. By establishing a major sourcing hub in Vietnam and Cambodia, Fresh Del Monte is positioning itself at the center of this growth. For THACO Agri, it solidifies its path toward becoming an ASEAN agricultural champion, demonstrating that its model of integrated, circular, and technologically advanced farming can meet the rigorous standards of a global leader like Fresh Del Monte.

The collaboration between Fresh Del Monte and THACO Agri is a forward-looking venture born from present-day crises. It represents a confluence of strategic risk management, sustainable innovation, and the shifting economic geography of global food production. As the world grapples with how to feed a growing population in an increasingly unstable environment, this partnership may offer a blueprint for the future of large-scale, resilient, and technologically-driven agriculture.