Banana Trade Flashcards
Banana industry facts
-The banana is the most popular fruit in the world, shoppers spend over $10bn annually
-For many developing nations the industry is important- bananas are the 4th most important crop in ensuring food security in the developing world
What was the banana industry’s export value in 2018?
$13.6bn
How many bananas a year are consumed in the UK?
5bn
What is the impact of the ‘race to the bottom’ on the banana industry?
-As in most food and manufactured goods markets, there is a ‘race to the bottom’ in the banana industry, with prices slashed on average by 41% between 2002 and 2018 in UK supermarkets.
-This has led to a rush by producers to outsource their plantations for the lowest cost possible
-This has led to massive worker exploitation, child labour and union suppression in countries such as Ecuador.
-There, half the workers exceed 14 hour days and are paid an average of $3.50 a day, less than the minimum wage.
Working conditions in Ecuador
-Half the workers exceed 14 hour days and are paid an average of $3.50 a day, less than minimum wage
Fair trade
-Fairtrade is an alternative to fully free trade and increases the plantation workers pay by 10% from 4% to 14% on the average banana
-They now make up 25% UK banana and coffee trade and support local farmers as well as a communal fund to improve working and living conditions
-The scheme amounted to over $30 million in 2018
Main aim of fair trade v free trade
-Fair trade: aims to empower marginalised people and improve the quality of their lives (bottom up community approach)
Free trade: a strategy to increase countries economic growth (top down government approach)
What are the benefits of fair trade?
-Focuses on the world shifting towards being more socially and environmentally sustainable for many periphery nations, this slowly beginning to counter inequalities within the system.
Who are the biggest banana exporters?
On average, more than 90 percent of bananas for export originate from Central and South America, and the Philippines.
Who are the largest banana importers?
-The EU, USA, china, Russia and Japan
Impacts of global warming on the banana industry
-The effects of global warming are resulting in a higher occurrence of droughts, floods, hurricanes and other natural disasters which render the production of bananas increasingly difficult uncertain and costly, posing threats to global suppliers and livelihoods of farmers and plantation workers
Brazilian Banana import decline
-Brazilian banana exports experienced a decline in both volume and revenue in 2023. Total volume exported was 56.2 thousand tonnes, a 48% decrease compared to 2022
-The earnings were US $56.2 million making a 50% decline (due to climate change and El Niño)
Why is the Brazilian banana industry experiencing decline?
-The economic downturn in Argentina diminished its purchasing power and delayed payment deadlines, discouraging Brazilian exporters (this shows issues with interdependence and reliance on other countries as there is a knock on effect)
-In future, the political instability of Mercosur is expected to continue impacting exports, along with the El Niño phenomenon, causing rainfall in the south, the primary exporting region.
Aim of fair trade
To make income sustainable, for farming families and use some of the additional money to support community facilities like schools, wells towns and cities
