Global Systems & Governance - Fairtrade of Bananas - World trade in one food commodity

Question 1

What is Fairtrade?

Answer 1

All producers along the chain are paid equally. A social movement whose goal is to help producers in developing countries achieve better trading conditions and since then has developed a more sustainable process.

Question 2

How many calories per 100g in a banana?

Answer 2

90cals

Question 3

What is the main goal of Fairtrade?

Answer 3

Provide structure and sustainable agricultural production, protect workers rights and distribute power in trade relations more equally between producers and buyers.

Question 4

What does Fairtrade focus on?

Answer 4

Tackle the industries injustices of conventional trade and ensure that their farmers have decent working conditions and prices for the crops they grow.

Question 5

Who primarily benefits from Fairtrade?

Answer 5

Disadvantaged workers and their farmers

Question 6

What are some main actions of Fairtrade?

Answer 6

• Ensuring that farmers and workers are paid a fair price
• Working to produce and support strong producer organisations
• Enabling decision making by farmers and workers on their business and community development

Question 7

Who is the key advocate organisations for Fairtrade?

Answer 7

World Fair Trade Organisation

Question 8

What percentage of the UK’s Fairtrade products are bananas?

Answer 8

Over 40%

Question 9

What is the water footprint of bananas?

Answer 9

50-75 inches of water per year

Question 10

Key info…

Answer 10

• Staple food for 500 million people in LICs
• Most internationally traded fruit
• Revenues of $15 billion per year
• 5th most traded agricultural commodity

Question 11

Industry…

Answer 11

• Top 4 producers: India, China, Indonesia, Brazil (also top 4 consumers)
• Regions that produce commercially for export concentrated in Latin America and Caribbean (17 million tonnes in 2018)
• Largest agrochemical input into environment - of all food products
• Cost the environment in terms of deforestation, soil fertility and loss of biodiversity

Question 12

Global banana trade…

Answer 12

• Most bananas for export are grown in monoculture plantations
• Largest importers are EU and USA
• 85% of the price paid by the end consumer never reaches the producer - workers receive 5-9% and retailers receive 36-43%

Question 13

What are some large TNCs that have control over the banana trade?

Answer 13

• Chiquita
• Dole
• Del Monte
• Fyffes

Question 14

Issues of the banana trade…

Answer 14

• Trade wars - trade disputes from 1992-2009, Geneva Banana Agreement reached in 2012, increased tariffs
• Race to the bottom - many larger companies are relocating their plantations, increasingly to West Africa
• Fairtrade and organic bananas - helps small scale producers and will partially counter the detrioration of conditions in banana production

Question 15

Disease…

Answer 15

Diseases can lie dormant in soil for decades and can prove resistant to fungicides so there os concern that it can take hold in different countries.