United Fruit Company Lecture Notes

Overview

• Formed: March 30, 1899, from a merger of Boston Fruit Company and Minor C. Keith's enterprises.
• Defunct: June 30, 1970 (as United Fruit Company), August 1984 (as United Brands).
• Successor: Chiquita Brands International.
• Main Products: Bananas (primary), also pineapples, grapefruits, and other fruits.
• Area Served: United States, Europe, Canada.

Corporate History

Early Years

• Founders: Henry Meiggs (contract to build a railroad in Costa Rica) and Minor C. Keith.
• Railroad Completion: 1890, facilitated banana transportation.
• Banana Trade: Became lucrative for Keith.

United Fruit (1899-1970)

• Merger: With Boston Fruit Company in 1899.
• Controlled: Large territories and transportation networks in Central America, Caribbean coast of Colombia, West Indies.
• Monopoly: Dominated banana trade in regions called "banana republics" such as Costa Rica, Honduras, and Guatemala.
• Criticism: Accused of exploitative neocolonialism.
• Labor Disputes: Faced major strikes in Colombia (1928) and Great Banana Strike in Costa Rica (1934).

United Brands (1970-1984)

• Merger: With AMK in 1970.
• Crisis: Hurricane Fifi in 1974, financial struggles led to "Bananagate" scandal involving bribery.

Chiquita Brands International

• Transition: Became Chiquita Brands International in 1984 under Carl Lindner, Jr.

Reputation

• Known for bribing government officials.
• Criticized by various Latin American writers and political entities.

History in Latin America

Guatemala

• Coup d'état 1954: Overthrew President Jacobo Árbenz with influence from United Fruit.

Cuba

• Operations: Controlled land and influenced local governance until expropriation in 1959.

Infrastructure in Costa Rica

• Impact: Significant investment in infrastructure, improving living standards.

Colombia

• Banana Massacre 1928: Strike led to massacre of workers, highlighted US intervention.

Honduras

• State Capture: Involved in political and economic maneuvers to control resources.
• Social Welfare: Provided employee benefits but faced labor challenges.

Environmental Effects

• Degradation: Significant impact on biodiversity due to plantation practices.

The Great White Fleet

• Shipping Fleet: Carried bananas and passengers, pivotal in establishing Caribbean tourism.

Aiding and Abetting a Terrorist Organization

• Chiquita Brands: Pleaded guilty to paying a terrorist organization in Colombia.

Key Takeaways

• United Fruit Company was a major player in the banana trade with extensive influence in Latin America.
• Its practices have been criticized for fostering neocolonialism and exploiting local resources and labor.
• The company's legacy continues as Chiquita Brands International.