Venezuela and Zao to establish banana processing company

The Venezuelan government has signed a joint venture agreement with Russian business Zao Bonanza International to establish a banana processing company.

The new company will be funded with $100m of capital, 51% of which Venezuelan Food (Cval) will invest and the rest will be contributed by Zao.

The new venture will be a mixed company for the production, processing, exportation and trade of bananas, with its base in Venezuela and branches in and outside the country.

Venezuelan president Hugo Chavez said the business will be spread over 2,000ha in an area south of Lake Maracaibo, Venezuela.

The business agreement comes as part of Venezuela’s strategy to diversify away from dependence on oil revenues.