Bananas
In the banana industry, production, profits, and power are highly concentrated. Just five corporations control around 85% of the world banana market.
Below you can find out about:
- Problems facing banana producers
- Benefits of Fairtrade for producers
- Fairtrade certified producers
- Selling Fairtrade bananas
- Buying Fairtrade bananas
Problems facing banana producers
It is estimated that only between 1-3% of total conventional banana sales return to the workers on large plantations.
Bananas are one of the most important foods for both consumption and trade. Almost 100 million metric tonnes of bananas are consumed every year. They are the fourth most important staple food in the world and the fifth most-traded agricultural commodity (after cereals, sugar, coffee and cocoa), generating billions of dollars.
In the banana industry, production, profits, and power are highly concentrated. Just five corporations control around 85% of the world banana market. Meanwhile, it is hard for small banana farmers and workers on banana plantations to earn a living, and they often work in difficult conditions.
It is estimated that only between 1-3% of total conventional banana revenue returns to the workers on large plantations. Between 7-10% of total revenue of bananas produced on small farms returns to the producers. Overall, an average of 4% of revenue returns to producing countries.
The cheapest production process possible
While large plantations are very efficient in producing cheap bananas ready for export to Northern markets, there are many problems that arise from this. The large corporations involved in banana production have historically had a lot of influence over Latin American governments in the countries where they had plantations.
Conditions allow for the cheapest production process possible, even when this violates labour rights or is environmentally destructive. For instance, in order to prevent the spread of disease on large plantations, huge quantities of pesticide and fungicide spray are used.
Chemical sprays
The typical banana plantation in Central America uses 30 kilograms of active pesticides per hectare annually, ten times more than intensive agriculture in industrialized countries. These chemical sprays have a very serious impact on the health of workers and people who live in the area, as well as for the surrounding wildlife.
In many plantations, work days can be very long, often between 12 to 14 hours with unpaid overtime.
Moreover, as a result of the steady decrease in banana prices over the past decades, the daily life of many plantation workers and small farmers in producer countries is deteriorating. In many plantations, work days can be very long, often between 12 to 14 hours with unpaid overtime. The majority of workers don’t have any work security or protection against the numerous lay-offs, and many employers only offer short contracts of 6 months or less.
Benefits of Fairtrade for producers
Bananas bearing the Fairtrade Certification Mark have been produced on small farmer organizations or in plantations that meet very high social and environmental standards. Farmers who produce Fairtrade certified bananas are guaranteed a Fairtrade minimum price to cover their costs of sustainable production and a Fairtrade Premium of US$ 1 per box of bananas to invest in social and economic projects in their communities.
The Fairtrade standards for banana production differ between small farmers' organizations and plantations. However the Fairtrade prices and Premium are set at the same level for both types of organization.
Fairtrade Minimum Price and Premium
- Producer organizations are guaranteed a Fairtrade price that covers the sustainable costs of production. The Fairtrade price for bananas is different for each region and is based on the costs of sustainable production.
- The Fairtrade price for organic bananas is higher than for conventional. Click here to see the full list of Fairtrade prices for bananas.
- A Fairtrade Premium of 1 US$ per box of bananas is paid to producer organizations.
Fairtrade Standards for small banana farmers:
- Profits must be equally distributed among the members of the cooperative or association.
- All members of the producer organization must have a voice in the decision-making process and in the group organization.
Fairtrade Standards for banana plantations:
- A Joint Body is formed and includes workers and management to decide on the use of the Premium.
- The Premium must not be used to cover ongoing operating expenses, but rather to improve living and working conditions.
- Forced labour and child labour of children of 15 years and under is prohibited. Work for children over 15 must not interfere with their education. They must not do work that could risk their health.
- Workers have the right to establish or join an independent union.
- Salaries must be equal to or higher than the regional average or than the minimum wage.
- Health and safety measures must be established in order to avoid work-related injuries.
To find out more about the Fairtrade standards for banana production download and read the full product standard.
Fairtrade certified producers
You can read a number of case-studies of Fairtrade banana producers on the Fairtrade Foundation website.
To find out which banana producer organizations are currently Fairtrade certified, you can check the database available on the FLO-CERT website.
Selling Fairtrade bananas
If you’re interested in selling Fairtrade bananas in your country, see our information about selling Fairtrade.
Buying Fairtrade bananas
If you want to find out what products are available in your country, visit the website of your national Fairtrade organization.
