World Trade in Bananas Case Study

Question 1

Where are most bananas grown?

Answer 1

On large monoculture plantations in Latin America and Africa.

Question 2

What is different about banana production in the Caribbean?

Answer 2

Production is controlled less by TNCs but more by small and medium scale farmers.

Question 3

Where are the main banana exports to?

Answer 3

The EU and USA.

Question 4

What percentage of the shelf price stays in the richer country?

Answer 4

Around 85%

Question 5

What percentage of the shelf price do the primary workers earn on average?

Answer 5

5-9%

Question 6

What percentage of the shelf price do the retailers earn on average?

Answer 6

36-43%

Question 7

In 2018, how many bananas were exported by Latin America and the Caribbean?

Answer 7

17 million tonnes.

Question 8

What percentage of global banana exports market share does Asia have?

Answer 8

Around 17%

Question 9

What are the leading countries for banana exports?

Answer 9

Ecuador, Costa Rica, Colombia.

Question 10

Between 2002 and 2017, what did the percentage of banana exports market share over the top 5 companies fall to?

Answer 10

70% in 2002 to less than 45% in 2017.

Question 11

What are the four main TNCs which dominate banana trade?

Answer 11

Chiquita, Dole, Del Monte (USA based) and Fyffes (Irish)

Question 12

How do the four main TNCs dominate banana trade?

Answer 12

By contracting out plantations to other producers or owning them outright.
They have thier own sea transport companies and ripening facilities and thier own distribution systems.

Question 13

Which kind of bananas have seen a steady growth in popularity?

Answer 13

‘sustainable’ bananas

Question 14

Why is the growth in demand for ‘sustainable’ bananas a good thing?

Answer 14

It helps small-scale producers in the Caribbean and parts of Africa, ensuring they get a fair pay.

Question 15

Which regions find a growing market for ethical consumers?

Answer 15

Richer, more developed countries.

Question 16

What compromise was established in Geneva in 2009?

Answer 16

The EU agreed to gradually reduce tariffs on Latin American bananas from 2012 onwards.

Question 17

What were the results of the Geneva Banana Agreement in 2009?

Answer 17

Tariffs on Latin American bananas to the EU came down from $176 to $75 per tonne between 2012 and 2018.

Question 18

How did the banana trade dispute begin in 1975?

Answer 18

As EU countries negotiated a trade agreement with 71 former colonies. This was the Lome Convention.

Question 19

What were the benefits of the Lome Convention?

Answer 19

The 71 Caribbean, African and Pacific countries were given special tratment with preferential tariff-free import quotas to supply EU markets.
The aim was to promote development of former EU colonies without aid.

Question 20

What was the backlash to the Lome Convention?

Answer 20

USA TNCs which controlled the Latin American bananas were supplying 75% of the EU market, whilst only 7% came from the Caribbean. In 1992 the TNCs filed a complaint to the WTO on unfair trade.