Geography Banana Case Study

• What is the topic of the case study fact file by Luke Pearson?

  The topic is the world trade in at least one food commodity or one manufacturing product.
• Why is the banana industry considered a good case study for Global Systems & Governance?

  It features themes like unjust trade patterns, geopolitical conflicts, and Fairtrade vs. free trade.
• How much do shoppers spend on bananas globally each year?

  More than $10 billion.
• What percentage of the world's banana trade is accounted for by Fairtrade bananas?

  2%.
• What percentage of bananas sold in the UK are classified as Fairtrade?

  25%.
• Why are bananas considered important for food security in the developing world?

  They are the fourth most important crop for food security.
• What percentage of bananas and plantains are traded on the world market?

  15%.
• Which companies dominate the banana production and trade?

  Chiquita, Del Monte, Dole and Fyffes.
• What was the impact of supermarket price wars in the UK on banana prices between 2002 and 2018?

  Retail prices of bananas were slashed by up to 41%.
• What is the rank of bananas in terms of value among products sold in the UK?

  They are the third most valuable product.
• How much did Fairtrade certified producer groups receive in premiums from UK sales of Fairtrade bananas between 2000 and 2008?

  About $28 million.
• Which country produces and consumes the most bananas globally?

  India.

  
• Why does most banana distribution take place within India?

  Because of high levels of both production and consumption.
• Where are most banana producers located?

  In lower income nations within the tropics.
• What is the relationship between production and consumption patterns of bananas?

  Consumption patterns often mirror production patterns.
• What percentage of global banana trade does Ecuador handle?

  Nearly 1/3.

  
• What does the core-periphery model illustrate in the banana industry?

  Workers in LICs are paid less than 1/12 of the final cost of bananas.
• What are some of the labour issues faced by banana workers in Ecuador?

  Child labour, dangerous conditions, unfair wages, long hours and union suppression.
• What is the average daily wage for banana workers in Ecuador?

  $3.50.
• What is the role of the Agricultural Workers and Peasants’ Trade Union Association in Ecuador?

  To collect evidence on human rights violations and report them to the UN.
• Which four TNCs dominated the banana industry until a few years ago?

  Chiquita, Del Monte, Dole, and Fyffes.
• What has happened to the market share of the top four banana companies since the 1980s?

  It has decreased from at least 70% to a little over 40% by 2019.
• What does market diversification refer to in the banana industry?

  The process of smaller companies reducing the dominance of large TNCs.
• What are the aims of Fairtrade in the banana industry?

  • Support marginalized workers earning low pay in poor conditions.
  • Increase economic growth through friendly trade policies.
• What are the major actions taken by Fairtrade producers?

  • Meet Fairtrade quality standards.
  • Paid a Fairtrade Minimum Price.
  • Receive a Fairtrade Premium for community improvements.
• Who are the key advocates for Fairtrade?

  • Fairtrade International
  • WFTO (World Fair Trade Organisation)
  • NGOs
  • Some nations
• What are the criticisms of Fairtrade?

  • Potential for zero producer benefits due to oversupply.
  • Only covers 2% of bananas globally.
  • Prices of bananas have been slashed by discounters.
• What is direct trade in relation to the banana industry?

  It aims to cut out the middleman between retailers and workers, increasing their earnings.
• What are the challenges faced by the banana industry?

  • Labor-intensive and demanding work.
  • Threats from climate change and plant diseases.
  • Influence of large multinationals requiring significant infrastructure.
• How does Fairtrade empower banana farmers and workers?

  • By ensuring decent living wages.
  • By providing a communal fund for improvements.
  • By increasing consumer awareness and support.
• What is the impact of Fairtrade sales on producers in Ecuador?

  In 2018, Fairtrade sales amounted to over $30 million, with $6 million in Ecuador.
• How do the ecological footprints of supermarkets relate to their pricing strategies?

  Supermarkets with better ecological footprints are often considered more 'prestige' or 'expensive'.
• The bananas are grown on plantations, which are large-scale commercial farms.
• The climate in Ecuador's coastal region is ideal for banana cultivation, with consistent warmth and humidity.
• Bananas are a major cash crop for Ecuador, contributing significantly to the country's economy.
• How many people in Ecuador work in the banana trade?


  200,000
• What is the "Fairtrade minimum price"?


  A communal fund in order to improve conditions for workers
• What might be seen as a major negative of the globalisation of the banana trade?

  The demand for produce links to the 'race to the bottom' - decreasing worker wages and quality of life.
• How long do working days often reach for banana plantations in Ecuador?

  14 hours per day