Banana Producers in Peru opt for sustainable development
by Peter Rhebergen
February 2006
They really go for it . In less than 3 years the number of members of APPBOSA doubled and the production of organic bananas increased considerably. The banana producers in the Samán region (Peru) undertake numerous activities for the strengthening of their farms, improvement of their living conditions and that of their community. “To realise this, Fairtrade is indispensable”.
They are surprised themselves on how fast it all went. The committee of 108 small banana producers that on January 2nd, 2003 founded the “Asociación de Pequeños Productores de Banano de Samán y Anexos (APPBOSA)”, has grown into an association of 216 members. On average every farmer owns a plantation of 1.5 hectares and this is what they have to live on since there are no other sources of income. This requires that they supply very high quality bananas and preferable for export, as this is most beneficial. “Especially before the start of APPBOSA life was not easy. We fully depended on Dole. Prior to 2003 we got US$ 2.05 per box of bananas. Now we have a two-year contract for US$ 3.- and, on top of this, a FLO premium of US$ 1,- per box sold on the Fairtrade market and this is a fast growing market”, according to Valentin Ruiz Delgado (43), President of APPBOSA. In 2004 it amounted to US$ 59,550, and in 2005 it concerns at least US$ 141,000.- of premium for the Fairtrade-bananas. “It is amazing to see how fast it grows and producers also see this. It is not only important to have a fixed price. The FLO premium allows our association to do a lot for the “socios” and for the community here in Samán and the surrounding area.”
Bad infrastructure
Samán is a small community (about 1,500 inhabitants) in the Marcavelica district (25,000 inhabitants) at about 45 kilometres of Piura in the North-East of Peru. The average temperature varies between 19°C to 37°C and the larger part of the year it is as dry as dust. Reason enough to ensure sufficient small irrigation channels for the plantations. The majority of the population is employed in agriculture, on the banana plantations. Half of the population is not connected to the power network. In Samán and surroundings the absence of running drinking water and sanitation represents a threat for public health and for the environment. Water supply is so limited that the population is forced to use water from the irrigation channel Miguel Checa, due to which there is water shortage for agriculture. Education is of poor quality due to lop-sided teaching, lack of educational materials and inadequate infrastructure and also health-care is having huge problems due to poor services and infrastructure. General phenomena of illness are respiratory infections, malnutrition, anaemia, diarrhea and malaria.
Mistrust
No wonder that, in view of the problems in the Samán region, the “socios” of APPBOSA opted to invest a substantial part of the Fairtrade premium in the improvement of their environment and community, apart from building up and strengthening their cooperative. “Especially in the early days of APPBOSA we have had serious problems to convince our members that together, as an organization, we can have a tangible impact on our community” relates Santos E. Atoche. “Because of the instable political climate here in Peru many farmers lost faith in the government. They were to sort it out for themselves most of the time anyway. Because of this they also mistrusted many civil organizations and we had to gain their trust. We have demonstrated that APPBOSA is not only important for ourselves, but that we also benefit from using a part of the Fairtrade premium in the local community. For our children’s development it is important that education improves and we all want safe drinking water and a good health-care centre”.
Use of the Fairtrade income
“Todo esto se Realiza Gracias a la Prima FLO” (“This is all realised through the FLO premium”), says the moving slogan on the new APPBOSA website (www.appbosa.com.pe). This indicates the importance of the Fairtrade income. Fairtrade certification meant reinforcement for APPBOSA and it allowed the organization the neccesary space to undertake actions for improvement of the position of small banana producers and the association. They succeeded to find a new banana exporter (Biocosta) in order not to depend on only one. Through the Fairtrade premium APPBOSA contributed considerably to the repair and maintenance of the (dirt) roads and not only the transport of bananas but also the supply of goods and gasoil to the farms (finca’s) could therefore improve. Because of the persistent drought, alternated by periods of heavy rainfall, the roads need a lot of maintenance and there is no money available for this. The extreme weather conditions and the poor vegetation also contribute to the serious erosion in the area. The region was heavily affected by the natural phenomenon El Niño: the small banana producers lost 50 hectares of agricultural land. The “socios” realised that the construction of irrigation channels right through the plantations was not only needed for irrigation in dry periods, but that they can also regulate drainage at heavy rainfall and consequently, in 2004, it was decided to co-finance the irrigation system. APPBOSA permanently takes charge of the cleaning and maintenance. The water pump, the construction of the pump house and a bridge were financed from Fairtrade income. Only the water has to be paid by the members themselves. There are advanced plans for irrigation of a new area of 30 hectares.
A change in thinking
Chairman Valentin Ruiz points out that Fairtrade certification for many producers represented a change in their way of thinking. “In order to be certified we had to comply with the FLO criteria and that implied more attention for the environment. We produce exclusively organic bananas and we do not use pesticides and in this area it is not easy to do without. Around 45% of our production cost is spent on maintaining soil fertility. APPBOSA now produces compost and all members use this. We spend a lot of time on education on farm management, environmentally friendly production techniques, quality improvement, how to comply with the Fairtrade criteria, what we can do to contribute to the regional development, to education, to health-care. Our members were simply not used to think about these issues, they did not see the purpose and lacked knowledge on how to improve their results and production methods sustainably. Through the Fairtrade income we can do a lot about this and our members are enthusiastic and motivated to participate. Attendance to our meetings is good, they benefit from the educational activities and they consider it to be important that APPBOSA contributes to social projects”.
Basilia Castillo Carlin (Secretary of APPBOSA) adds to this that also contributions to individual “socios” are given. She shows us the overviews that periodically appear in APPBOSA bulletins. “Besides the contributions for the health-care centre, the community house and the other community services, the cooperative created a funeral fund and a support fund for cases of illness (to pay for medicines) and chirurgical interventions . The members also receive a contribution for school books for their children. And we give something at Christmas and Mothers Day”.
Strength and weakness APPBOSA
Precondition for bringing the intentions to reality is a strong organization. Jim Ruiz, since half a year working as a contents staff member with APPBOSA, mentions a few strengths of APPBOSA: a wide support among members, unity, and a transparent administration. Education and training being offered, the existence of strategic alliances with other institutions and cooperatives. “Of course there are weaknesses as well. We do not have our own vehicles for the transport and export of the bananas. We do not have packing infrastructure. The members lack knowledge on markets and management. Our internal quality management system needs to be further developed. Our members do not yet have (individual) certification for organic bananas”. These are all issues on which APPBOSA organises a lot of capacity building.
Workshops
They reserved the day for it: around 50 socios are seated in the open community house of Samán and listen to the information given by the chairman of APPBOSA. The progress in the construction of the own APPBOSA building for offices and storage, state of affairs on compost production, finances, regional coordination in respect of measures against flooding. The activities of the youth club. Just to mention a few of the issues presented. But this is not the most important thing the members came for. Two workshops are the focus. In the morning session an external expert elaborates on the many aspects of (individual) organic certification. The attendants are very much interested and they understand the importance of the organic production of bananas. But they are entrepreneurs too. “Of course it is important for the environment and for the consumers’ and our own health. But what about the availability of natural pesticides? And this internal control system, the inspection and all this administration, what do they imply for our farms? Is this not very costly?” some of them wonder. “It needs to be paid out of the Fairtrade income. The FLO premium needs to go up, so that it becomes easier to meet the requirements for organic”.
The discussion shows that the socios want to have more information on the subject. There will be more meetings to follow. Meetings where members exchange experiences are also being organised. They listen to each other and this promotes the sense of solidarity and the unity in APPBOSA. Part of the organisation is also the “Grupo Juvenil Samán”. This group of youngsters was founded by APPBOSA in order to support the development and education of young people and their participation in social activities. The cooperative, together with the regional authorities, supports a project of this youth club to clean up the area from waste and, whenever possible, recycle it. It is a project that is applauded by the community. The youth also organizes meetings where sex education or information on the rights of younger persons is given, besides other cultural activities. Over 80% of the young people, member of “Grupo Juvenil Samán”, is part of the families of “socios”. It is evident that a presentation of the dance squad from the group at the APPBOSA meeting is very much appreciated.
Valentin Ruiz is a father of 3 sons of 16, 14 and 13 years old. “I consider it to be important that they know that they are part of it and that they also learn what it means to be responsible for their environment. Because of APPBOSA and the Fairtrade income they can be better educated and trained and they will need it once they grow up.
Being positive
The afternoon workshop is the last of a series of six sessions. The central theme is “The APPBOSA member’s profile”. Talking about a sense of unity…. The workshop is given by a consultancy agency. At the start of the session the organization psychologist tries to “loosen up” the participants. Some exercises to relax follow. None of the people present seems to have a problem with it. Arms are raised in the air and deep breaths are taken and they repeat after the trainer a kind of mantra. The message is clear: we are worthwhile! In small groups the members formulate key answers to what a socio needs to “know” , “be able to” and “strive for”. The conclusions are written on a board. Discussion again, what prevails, what characterizes the APPBOSA member? In any case: BEING POSITIVE! And besides this, it is expected from the members that they “participate actively” in APPBOSA.
In “The APPBOSA member’s profile” the key elements are “participation”, “speak up for oneself” and “being positive”.
The participants to the workshop receive a certificate and an “organic applause”! Indeed, APPBOSA is all about “Agricultura Orgánica para un mundo Sano” (organic agriculture for a healthy world) as stated in one of their information bulletins.

