🌍✅3.2.1.2 Global Systems Food Comodity CASE STUDY - Fair Trade : Bananas Flashcards
Which countries are the biggest banana importers?
EU 29%
USA 27%
Some exporters only export small fractions of production as price at borders is higher than international price
Which countries are the main consumers of banana?
Filipinos 60kg/ year
Rural areas (e.g Cameroon) - bananas provide up to 25% calorie intake/ day = 100bn bananas consumed each year
How do bananas contribute to food security?
Export revenues from banana covered 40% of Costa Rica’s food import bill (2014) - Sig in LIC
Which 5 large international companies operating in banana production and free trade?
They engage in: production, purchase, transport and marketing
Chiquita
Fresh Del Morte
Dole
Duffest
Noboa
What disease threatens banana production?
TR4 a wild fungus massively affecting production in Africa
How does TR4 affect bananas?
TR4 is a pathogen that attacks the roots of the plants and blocks vascular systems. Fungus first discovered 1990 China now widely spread even to Australia
Do bananas diseases threaten food security in developing countries?
Disease predominantly affects the Cavendish variety which affects internationally + local consumptions
No means of eradication = serious threat
What other challenges does the banana sector face?
-Rising production costs
- High levels of competition ageing international trade
- Pressure on worker wages
How will climate change affect production?
- Floods droughts, temperature inc, new pests and inc spread of disease = DECLINE of productivity
Fairtrade have developed fair trade strategy focusing on mitigation and adaptation - Organic bananas producers were hit by “red nest” pests triggered by climate change in 2013 which affected approx 40%
Fair trade implemented project to help farmers find solution to outback e,g inc biodiversity, local plants which repel insects
What are the wider impacts of Fair Banana Trade?
-91% of the workers in Columbia said their household assets have inc by avg of 64% since their plantation become fairtrade certified
- 78% of workers interviewed in Ecuador said their health + nutrition have improved in the last 3 years
What countries are the biggest producers of bananas?
India - 29m tonnes/ years (2010-2015)
China - 11m tonnes per year
Phillipenes - 9m tonnes per year
What is the estimated harvested area globally?
5.5 million hectares of land
What is the average yield of bananas ?
- The avg yield is 40-50 tonnes per HA
- 14 tonnes / HA (1993) to 21 tonnes / HA (2015)
Larger producers (phillipines + India) 60 tonnes / HA - Smaller countries on,y 30 tonnes / HA
What are the main drivers of global banana production?
Inc pop of 8bn therefore the inc consumption requirement in developed countries
How has production expanded?
- Improved productivity due to increased application of pesticides and fertilisers
- Between 2000-2015 India near,y 2x their harvested area
How much revenue does the global banana industry generate in dollars?
8bn/ hear
HOWEVER on,y 15% traded to international market the rest consumed locally becoming main element in diets e.g China
Which country has the biggest banana industry in terms of GDP?
Ecuador 🇪🇨
Which countries are the biggest banana exporters? (2010-2016)
Ecuador - 33%
Phillipenes - 14%
Columbia - 11%
What are the 2 types of farmers who farm bananas?
Carribean
TNCs - Latin America (Chiquita)
What are the characteristics of Caribbean farmers? (5)
- Small plants
- Independent
- More expensive
- Natural farming
- 50% rely on banana exports for basic needs
What are the characteristics of TNC Latin American farmers? (5)
- farms owned by TNC
- employ workers (cheap labour)
- deforest trees - soil erosion
- chemicals used - harm workers and their children (e.g respiratory)
- local water source contaminated
What were the 7 stages of the banana wars?
1) UK trade with Caribbean due to colonial history
2) EU trade with cheaper TNC latin American
3) UK & EU enter free market - UK ‘should’ trade with TNC as cheaper (7% from Caribbean 75% from TNC)
4) TNC & US complained to WTO as seen as unfair to still trade with Caribbean due to their low cost
5) US placed tariffs on Scottish whiskey & EU wine - to balance
6) WTO said “trade in free market on economic terms not social/environmental”
7) US won so UK only trade from TNC - UK reduced tariffs on US bananas (£60 less per tonne)
What were the consequences of the banana wars on Caribbean farmers and globalisation? (4)
- lost trade to UK
- used to export 76,000 tonnes
- loss of land and bananas - debt
- 30% of farmers turned to growing weed as high value - ILLEGAL
What was the result of the US’s governmental intervention? (3)
bad trade despite trade agreement
TNC large influence on smaller farmers
lead to consequences for Carribean
What are the pros of fair trade bananas? (5)
- higher wage for famers in free market
- better working conditions
- no discrimination
- less child labour
- helps small businesses to be competitive internationally
What are the cons of fair trade bananas?
- high fees
- less production choice
- big buyers not attracted as more expensive
- no drive to be more efficient as guaranteed to be paid
What country has the biggest banana industry in terms of sales?
Ecuador - nearly $3 million, accounted for 33% of total exports
