El Guabo Fairtrade

Question 1

What is this case study about?

Answer 1

The El Guabo Association of Small Banana Producers was formed in 1997 in South West Ecuador and is one of the largest producers of Fairtrade bananas.

Question 2

How much does The El Guabo Association of Small Banana Producers export each week?

Answer 2

Around 30,000 boxes to the USA and Europe.

Question 3

How has Fairtrade benefitted them?

Answer 3

Before the 339 family farms sold bananas at a price too low to cover basic costs but now under Fairtrade they can sell at a higher price to help support the local communities.

Question 4

Economic Benefits (4)

Answer 4

Stabilised income and improved standard of living.

Guaranteed fair wage and long-term supply contracts.

Producers are able to raise additional capital for reinvestment.

Migrant labourers are helped, e.g. assistance to buy their own land.

Question 5

Social Benefits (6)

Answer 5

Health care benefits to families of cooperatives, e.g. free use of El Guabo Clinic.

Provision of education and medical supplies.

Affiliation with a social security system, e.g. payment of retirement benefits.

Support for the poorest groups.

Improved education provision.

Marginalised groups helped to find employment.