Del Monte Corporation posted $1.10 billion in net sales for Q3 2026, up 7.2% year-over-year, but its banana segment told a different story: $313.3 million in net sales and a gross loss of $2.7 million. Lower shipment volumes, increased competition, supply constraints in the Middle East, higher ocean freight costs, and El Niño-related Black Sigatoka prevention costs in Costa Rica (approximately $6.1 million) all weighed on the segment. The company is also continuing to close four banana farms in Costa Rica as part of a restructuring.
The banana loss is significant given Del Monte's scale and signals that cost pressures across the global banana supply chain are real and acute. This follows recently covered warnings from Chiquita about lower banana sales in 2027, suggesting the entire industry is under margin pressure heading into next year. The fresh produce and value-added segment also faced headwinds from lower avocado and fresh-cut fruit volumes.
Category managers and buyers sourcing bananas for the holidays should monitor supply reliability from major shippers, as ongoing farm closures and El Niño weather disruptions could tighten availability and push prices higher into early 2027.