Bananas Case Study Flashcards
Why are bananas significant in global trade?
Bananas are a staple food for 500 million people, generating $15 billion per year in revenue, and are the 5th most traded agricultural commodity.
Where are bananas primarily produced, and why?
Bananas are mainly produced in India, China, Indonesia, and Brazil due to hot, rainy tropical climates suitable for monoculture plantations.
Which regions dominate banana exports?
Central America and the Caribbean dominate exports, exporting 2-3 times their domestic consumption.
How do transnational corporations (TNCs) control the banana trade?
TNCs like Chiquita, Dole, and Del Monte own plantations, control production, and use vertical integration for transport and ripening, leading to economies of scale.
Who benefits the most from banana sales in a UK supermarket?
Retailers take 41% of the price, TNCs take 29%, while plantation workers receive only 5-9% of the value.
What are the economic challenges in the banana trade?
There is a ‘race to the bottom’ for cheap labor, weak regulations, and power shifting towards retailers, leading to price suppression and supplier dependency.
What are the key social concerns in banana production?
Workers face low pay, long shifts, and poor working conditions due to cost-cutting by major corporations.
What are the environmental consequences of large-scale banana production?
Deforestation, soil degradation, biodiversity loss, and high agrochemical use, leading to pollution and water contamination.
How does Fair Trade help banana farmers?
Fair Trade ensures stable pricing, supports sustainable farming, and benefits small-scale farmers with better market access.
What is a major threat to banana crops?
The Cavendish banana, which makes up 99% of global trade, is vulnerable to new diseases due to its lack of genetic diversity.
