World Trade in Bananas Flashcards
Where do bananas rank in terms of their importance as a food product in developing countries?
They are the 4th most important food product within least developed countries
For how many people are bananas a staple food?
Around 400 million people
How many calories are in 100g of banana?
50
How much of an adults daily potassium requirement does one banana provide?
More than the daily amount
Where do bananas rank in terms of being the most traded agricultural commodity?
They are the 5th most traded agricultural food commodity
How many tonnes of bananas were exported in 2013?
16.5 million tonnes
Where were the bananas mainly exported from?
Latin America and the Caribbean
In what type of climate are bananas grown?
In hot, rainy lowlands of tropical regions
What happens to many of the bananas in India, Brazil and much of Africa?
They are consumed domestically
Which country is the largest producer of bananas globally?
India
Where does India export its bananas to?
The Middle East and other parts of Asia
Where does the Philippines export its bananas to?
Japan and other parts of East Asia
How do banana growers prevent disease?
They treat the bananas with chemicals throughout the production cycle
How many kg of chemicals are applied in commercial banana plantations by TNCs every year?
30kg of active ingredients per hectare per year
What type of chemicals are used to prevent disease in bananas?
Fungicides, insecticides and herbicides
What other chemicals are applied to bananas?
Fertilisers and the bananas are washed with disinfectant
How do bananas rank in terms of agrochemical input into the environment?
The banana industry has the secondn largest agrochemical input into the environment
What are the environmental impacts of banana plantations?
Deforestation
Waste
Soil fertility
Loss of biodiversity
Why is there a problem with biodiversity as a result of banana plantations?
Pollutants run into water courses
How much waste is produced from growing bananas?
For every one tonne of bananas there are two tonnes of waste
Why is there a problem with soil fertility as a result of banana plantations?
Contaminants get into the soil
Which two groups of producers dominate the banana trade?
The ACP group
The ‘dollar producers’
What is the ACP group?
Africa, Caribbean and Pacific
Who are the ‘dollar producers’?
Central American republics (mainly Ecuador and Columbia) controlled by US TNCs
What is the pattern of banana trade?
From LICs to HICs
What percentage of exported Bananas are from the Caribbean and Latin America?
80%
What percentage of the banana export market does Asia have?
17%
Who are the largest importers?
The EU and the USA
What percentage of exported bananas are consumed by the USA?
27%
What percentage of exported bananas are consumed by the EU?
27%
What percentage of the price paid by the end consumer stays in the richer countries and never reaches the producer?
90%
Who has the most risks from producing this fruit?
The producer
Who takes the largest slice of profits?
Retailers
Which four TNCs dominated 80% of the banana trade in the past?
Chiquita, Dole and Del Monte from the USA
Fyffes from Ireland
Who is the other important banana producer?
Noboa
Where is Noboa based?
Ecuador
How are these banana TNCs integrated?
Vertically up the chain
What is a benefit of vertical integration?
Significant economies of scale
On what type of plantations are most bananas grown?
Monoculture plantations
Which area is starting to have more monoculture plantations?
Africa
Where are there lots of small-scale family banana farms?
Caribbean
Up until when did the big five companies control 60% of the marker?
2002
How much of the market share do the big five companies now have?
45%
How have the big five companies changed their production line?
They now use supply contract with medium and large scale producers instead of taking direct ownership of plantations
Why do suppliers have little option but to accept conditions such as low prices and delayed payments?
They risk being taken off the supplier list as retailers are now increasingly dominating the supply chain
How long was the banana trade dispute?
20 years
When did the banana trade dispute start?
1992
When was the Geneva Banana Agreement?
2009
When did the Geneva Banana Agreement come into force?
2012
Why did the dispute start?
In 1975, EU countries signed an agreement with former European colonies known as the Lome Convention
Who was the Lome Convention made with?
71 African, Caribbean and Pacific countries
What happened to the 71 ACP countries in the Lome Convention?
They got special and differential treatment with preferential tariff-free quotas to supply EU markets
What was the aim of the Lome Convention?
To help the former European countries to develop independently without having to use overseas aid
What was the effect of the Lome Convention?
To protect mainly smaller, family-run farms in the Caribbean and Africa from competition with the large Latin American producers that produced cheaper bananas on mechanised plantations
At the time of the Lome Convention, what percentage of the EU market was supplied by Latin America?
75%
At the time of the Lome Convention, what percentage of the EU market was supplied by Caribbean suppliers?
7%
When did TNCs file a complaint to the WTO that the EU practice was unfair trade?
1992
What did the WTO rule as a result of the TNC complaint and when?
In 1997, the WTO ruled against the EU and Lome Convention and stated that the EU had to cease the discrimination
Why was the dispute not resolved after the 1997 WTO ruling?
The EU proposals did not satisfy larger producers
How did the USA retaliate?
It imposed WTO approved sanctions on a range of EU products
Why did the USA retaliate?
It was under pressure from TNCs
Who was the compromise reached by in the Geneva Banana Agreement?
The EU and 11 Latin American countries
What was the result of the Geneva Banana Agreement?
The EU agreed to gradually reduce tariffs on Latin American bananas
Of the Caribbean countries, which ones are now able to successfully compete with larger producers?
Dominican Republic
Belize
The Windward Isles
Why are many large companies relocating their plantations?
Due to low prices paid to suppliers by supermarkets
Where are many large companies relocating their plantations?
To West Africa
Why are many large companies relocating their plantations to West Africa?
There is weaker legislation and labour costs are lower
What is meant by ‘a race to the bottom’?
In terms of social and economic standards this is where countries compete by cutting labour costs
What type of contract do plantation employees have?
It is normally sub-contract labour so work is becoming increasingly casual
What are the working conditions like for plantation workers?
Long shifts in unbearable heat
What do many plantation workers fail to do?
Earn enough to cover their basic needs
What has there been a steady growth in?
‘Sustainable’ bananas
What do sustainable bananas include?
Organic and fair trade bananas
