Case Study: Banana's Flashcards
(23 cards)
Why are bananas important globally as a food commodity?
- One of the world’s favourite fruits.
- 4th most important food in least developed countries
- Staple for ~400 million people
- 5th most traded agricultural commodity globally.
Where are bananas predominantly grown?
- Hot, rainy tropical lowlands.
- Average temperature around 27°C.
- Annual rainfall between 2000-2500mm.
What are the environmental issues in banana production?
- High chemical use: fungicides, insecticides, herbicides.
- Causes deforestation.
- Large waste production: 2 tonnes waste per 1 tonne bananas.
- Soil fertility loss due to contaminants.
- Loss of biodiversity, especially aquatic life affected by pollutants
Which regions produce bananas mostly for export?
- Latin America and the Caribbean, especially Ecuador and Colombia.
- Growing exports from Africa (Côte d’Ivoire, Cameroon).
- Asia’s Philippines is a significant exporter.
What country is the largest exporter?
Ecuador
Which regions consume the most imported bananas?
- EU & USA
- Each consumes about 27% of the world’s exported bananas.
How many KGs of bananas does a UK resident eat in a year?
10 kg
Value of banana exports in 2017
$12.4 bn
How much of the consumer banana price reaches producers vs retailers?
- About 10% reaches producers.
- Around 90% remains in richer northern countries.
- The largest share is taken by retailers.
Q: Name the four large TNCs dominating the banana trade.
- Chiquita
- Dole
- Del Monte
- Fyffes
How do TNCs control the banana supply chain?
- Own plantations, sea transport, ripening facilities, and distribution.
- Benefit from economies of scale.
- Profits repatriated mainly to the USA and Ireland.
How has the role of TNCs in banana production shifted recently?
- Shift from owning plantations to contracting medium/large producers.
- Grocery retailers in importing countries increasingly dominate supply chains.
- Suppliers face low prices, discounts, and delayed payments.
What was the main cause of the EU-ACP banana trade dispute?
- EU gave tariff-free quotas to former colonies (ACP countries).
- Latin American producers controlled by US TNCs were disadvantaged.
- WTO ruled against EU’s preferential treatment.
- Led to a long trade dispute and 2009 Geneva Banana Agreement.
What did the 2009 Geneva Banana Agreement do?
- EU agreed to gradually reduce tariffs on Latin American bananas.
- ACP producers remain concerned about competitiveness.
- Caribbean medium-scale plantations compete better (e.g., Dominican Republic).
- 80% of bananas entering the EU now come from Latin America.
What defines Fairtrade bananas?
- Certified to guarantee fair wages and trade terms.
- Include a development premium for local community reinvestment.
- Support small-scale producers and cooperatives.
When and where was the El Guabo Association of Small Banana Producers formed?
Formed in 1997 in southwest Ecuador.
What is the scale of El Guabo’s banana exports today?
- One of the world’s largest fairtrade banana producers
- Exports around 30,000 boxes a week to the USA and Europe.
How were the El Guabo farmers selling their bananas before Fairtrade?
Through intermediaries at prices too low to cover basic costs.
Name 5 economic benefits Fairtrade brought to El Guabo producers.
- Stabilised incomes
- Guaranteed fair wages
- Long-term contracts
- Direct access to new markets
- Ability to raise capital for reinvestment (e.g., washing tanks).
How does Fairtrade support migrant labourers in El Guabo?
Assisting them to buy their own land.
What 4 social benefits do El Guabo cooperative families receive?
- Health care benefits (free clinic use),
- Educational and medical supplies
- Social security affiliation
- Retirement benefits.
How does El Guabo help the poorest groups and marginalized individuals?
- Provides food baskets, improved education (e.g., special needs school)
- Employment opportunities for marginalized groups like HIV/AIDS sufferers.
What % of banana trade did the top 4 TNCs domiante?
80%
