Bananas

Question 1

Why are bananas important?

Answer 1

• Staple food for 4000 million people
• 1/5 most traded agricultural commodity
• in 2013, 16.5 million tonnes exported

Question 2

Where are bananas produced?

Answer 2

• Hot, rainy lowlands in tropical regions
• India, Brazil, and much of Africa
• India largest global producer and exports to The Middle east and
  other parts of Asia.

Question 3

What are the issues with banana production?

Answer 3

• Many treated throughout the production cycle with chemicals
• Fertilizers applied to increase yield
• With exception of cotton, the banana industry has the largest
  agrochemical input into the environment
• Deforestation for plantations
• Waste - for every 1 tonne of bananas produced there are 2 tonnes of
  waste
• Monoculture - At least 97% of internationally traded bananas come
  from one single variety, the Cavendish

Question 4

What are the issues with banana trade?

Answer 4

• Production controlled by TNCs
• Developing nations export a low-value product making little money
• 90% of the price paid for a banana by consumer stays in the HICs and does not reach the producers, most staying with retailers.
• On average, workers only earn between 4 – 9% of the total value of bananas, whilst retailers keep are able to earn up to 40% of the price paid by consumers. In some countries
  retailers keep even more.

Question 5

What is a race to the bottom?

Answer 5

A race to the bottom refers to
competition between nations,
or companies, where product quality or rational economic decisions are sacrificed in order to gain a competitive
advantage or reduction in product manufacturing costs.

Question 6

How is there a race to the bottom in the banana industry?

Answer 6

• A ‘race to the bottom’ in the banana industry has been fuelled by the low prices paid by supermarkets and the cost cutting actions taken by fruit companies as they relocate in
  search of cheaper labour and weaker legislation in exporting regions.
• This has also led to unfair trading practices being imposed on workers in the banana sector.
• Plantation labour is increasingly casual with many workers on temporary contracts or hired on a daily basis. In several countries, membership of independent trade unions has
  fallen as a direct result.
• Plantation conditions are harsh, for example, male and female workers can often work for up to 14 hours a day
  without overtime in unbearable heat, for up to 6 days a week. Many workers fail to earn a ‘living wage’ to cover
  their basic needs such as housing, food, clothing and education.

Question 7

What are examples of good bananas?

Answer 7

• Produced with fairtrade - supports small independent producers who are paid a decent price for their bananas. It also certifies some larger plantations where trade unions and collective bargaining rights are encouraged.
• Organic - the banana uses more
  agrochemicals per hectare than any other crop in the world. Buying Organic ensures that exposure to toxic chemicals for people is avoided and ecosystems are better protected.

Question 8

How are bananas traded across the world? (trading routes)

Answer 8

• biggest producers are LICs and NEEs who export goods to higher income countries
• USA is one of the largest consumers with minimal production
• Europe only produce a very small amount in southern Italy and Portugal, however are one of the largest global consumers
• many of the bananas exported to the EU come from South America
• Middle East and Africa are very large producers