🌍✅3.2.1.2 Global Systems Food Comodity CASE STUDY - Fair Trade : Bananas

Question 1

Which countries are the biggest banana importers?

Answer 1

EU 29%
USA 27%
Some exporters only export small fractions of production as price at borders is higher than international price

Question 2

Which countries are the main consumers of banana?

Answer 2

Filipinos 60kg/ year
Rural areas (e.g Cameroon) - bananas provide up to 25% calorie intake/ day = 100bn bananas consumed each year

Question 3

How do bananas contribute to food security?

Answer 3

Export revenues from banana covered 40% of Costa Rica’s food import bill (2014) - Sig in LIC

Question 4

Which 5 large international companies operating in banana production and free trade?

Answer 4

They engage in: production, purchase, transport and marketing
Chiquita
Fresh Del Morte
Dole
Duffest
Noboa

Question 5

What disease threatens banana production?

Answer 5

TR4 a wild fungus massively affecting production in Africa

Question 6

How does TR4 affect bananas?

Answer 6

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

Question 7

Do bananas diseases threaten food security in developing countries?

Answer 7

Disease predominantly affects the Cavendish variety which affects internationally + local consumptions
No means of eradication = serious threat

Question 8

What other challenges does the banana sector face?

Answer 8

-Rising production costs
- High levels of competition ageing international trade
- Pressure on worker wages

Question 9

How will climate change affect production?

Answer 9

• 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

Question 10

What are the wider impacts of Fair Banana Trade?

Answer 10

-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

Question 11

What countries are the biggest producers of bananas?

Answer 11

India - 29m tonnes/ years (2010-2015)
China - 11m tonnes per year
Phillipenes - 9m tonnes per year

Question 12

What is the estimated harvested area globally?

Answer 12

5.5 million hectares of land

Question 13

What is the average yield of bananas ?

Answer 13

• 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

Question 14

What are the main drivers of global banana production?

Answer 14

Inc pop of 8bn therefore the inc consumption requirement in developed countries

Question 15

How has production expanded?

Answer 15

• Improved productivity due to increased application of pesticides and fertilisers
• Between 2000-2015 India near,y 2x their harvested area

Question 16

How much revenue does the global banana industry generate in dollars?

Answer 16

8bn/ hear
HOWEVER on,y 15% traded to international market the rest consumed locally becoming main element in diets e.g China

Question 17

Which country has the biggest banana industry in terms of GDP?

Answer 17

Ecuador 🇪🇨

Question 18

Which countries are the biggest banana exporters? (2010-2016)

Answer 18

Ecuador - 33%
Phillipenes - 14%
Columbia - 11%

Question 19

What are the 2 types of farmers who farm bananas?

Answer 19

Carribean
TNCs - Latin America (Chiquita)

Question 20

What are the characteristics of Caribbean farmers? (5)

Answer 20

• Small plants
• Independent
• More expensive
• Natural farming
• 50% rely on banana exports for basic needs

Question 21

What are the characteristics of TNC Latin American farmers? (5)

Answer 21

• 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

Question 22

What were the 7 stages of the banana wars?

Answer 22

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)

Question 23

What were the consequences of the banana wars on Caribbean farmers and globalisation? (4)

Answer 23

• 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

Question 24

What was the result of the US’s governmental intervention? (3)

Answer 24

bad trade despite trade agreement

TNC large influence on smaller farmers

lead to consequences for Carribean

Question 25

What are the pros of fair trade bananas? (5)

Answer 25

• higher wage for famers in free market
• better working conditions
• no discrimination
• less child labour
• helps small businesses to be competitive internationally

Question 26

What are the cons of fair trade bananas?

Answer 26

• high fees
• less production choice
• big buyers not attracted as more expensive
• no drive to be more efficient as guaranteed to be paid

Question 27

What country has the biggest banana industry in terms of sales?

Answer 27

Ecuador - nearly $3 million, accounted for 33% of total exports