by Peter Rhebergen

March 2005

Nowhere in Ecuador but South of Guayaquil can such wide and well tarred highways be found. This is the area where banana king Noboa's rules are law for banana farmers. This former candidate for presidency knows better than anyone how to manipulate the government to construct these "racing tracks" meant for fast transportation of his bananas. Yet, the small banana farmers of "El Guabo" do not allow themselves to be stopped by him from producing their "fair" bananas. The map in the office of the Asociación de Pequeños Productores Bananeros "EL GUABO" (APPBG) shows large areas of banana plantations. They belong to Ecuador's largest banana producers. In between them, like tiny moth-holes in a woollen blanket, are the plantations of small banana farmers. Hundreds of them. Luis Loja - chairman of the "El Guabo" co-operative - smiles in satisfaction over this patchwork quilt. "More and more of these spots are appearing. We are growing. More and more farmers are convinced of the Fairtrade concept and want to join. Many of those convert their banana production to organic. They realise not only that consumers are increasingly demanding "clean" bananas, but also that the use of pesticides and other chemicals is detrimental to their own health. Moreover, Fairtrade guarantees a minimum price.

This ensures a secure income. The owners of Dole bananas have to watch out that the spots between their plantations do not become very large. Luis Loja (42) is an enthusiastic and committed promoter of the fairtrade producers' interests. With his plantation of only one hectare he is no different from the other banana producers in "El Guabo". For almost two years now he has been the chairman. He stepped in after the inspiring leader Jorge Ramirez passed away. A crisis threatened "El Guabo": how could the continuity of the APPBG be guaranteed? After Luis' appointment followed that of the Dutch Lianne Zoeteweij (31) as a general manager. She and Luis Loja together are the pivot of "El Guabo", supported by Wilson Navarrete (secretary) and a team of 30 in the central office. Not only the export contracts, the logistics for transportation, the banana quality monitoring and the control of the FLO-criteria are organized from here. Also the co-ordination of the education and health-care programs, the capacity building of banana producers, educational activities on management skills and the execution of environmental and social programs take place here. The office, based in the capital El Oro of the province with the same name, is not so much the administrative centre of the association "El Guabo". It is most of all the headquarters of a successful enterprise of over 300 small banana farmers, in which more than 100 people earn a living.

THE "EL GUABO" CO-OPERATIVE

El Guabo" (APPBG) has a fairly short history. On 27 November 1997, 14 banana farmers, supported by Solidaridad (a Dutch NGO), founded a co-operative that was meant to function according the principles of Fairtrade. Until that date the farmers depended on sales to intermediary traders and the developments on the world market. Often the income was insufficient to cover the basic costs. This dependent position was definitely not a guarantee for healthy labour conditions and reasonable subsistence. The production of "clean" bananas was not on the agenda at all. In 1998 FLO certification was obtained and on 18 October 1998 the first 1056 boxes of "Max Havelaar-bananas" were shipped to "Coop. Suisse".

"It was not all that easy in the initial phase" Wilson Navarrete (40) says. "We did not have good logistics for the transport of bananas. Although direct export was much cheaper for us, we did not have any experience. And when in 2001 we obtained SKAL-certification for organic bananas, we even had to increase the quality criteria for the bananas and for the production. But we managed. Because of the success of "El Guabo", small banana farmers in El Oro, Guayas and Azuay noticed that the Fairtrade system could be in their interest, and they joined".

Also for Navarrete himself and his family "El Guabo" has been of great importance. For many years he used to be a plantation worker, without a secure income, social security, health-care or a contribution to the cost of school materials for his children. Presently he is one of the bigger "small independent banana producers". He is the owner of a 13 hectares plantation. Banana producers in "El Guabo" own on average 6 hectares, that produce approximately 150 boxes of 18 kilos of bananas weekly. "I was lucky to be able to buy my boss's plantation. That cost a huge amount of money. I still have a considerable debt and I am still paying off. This is possible because through Fairtrade I have a secure income. If that was not the case, I would have gone to Spain to find work, just like so many others do. My case is similar to the position of many more producers over here".

Just like the other members of the co-operative Navarete can make use of the services and facilities made available by the organisation because of the premium paid on each box of bananas. Anibal - board member responsible for "Social Affairs" - mentions some of the activities (in 2004):

Health-care: health insurance for the producers US$ 41,000.-. Also to employees of APPBG producers a compensation for medical costs was granted - a total of US$ 82,000.-. Furthermore preventive medical research was carried out and First Aid training was given.

Education: 444 children received school materials or a bonus of US$ 40. - for study costs. Activities for children/ childcare: US$ 2,500.-. Cost of living US$ 2,500.-. Food stuffs at value of US$ 10. - per employee are distributed monthly.

A substantial part of "El Guabo's" income is used for the improvement of production methods: irrigation, drainage, cable transport of bananas, and environmental protection measures.