20th August 2009, Banana Link

In early 2008, Chiquita announced two new joint ventures to produce and export bananas from Southern Africa: one in Angola, the other in Mozambique. The most advanced of the two projects is in Mozambique's Northern province of Nampula, from where the company this week announced that it will start exporting 50 containers a week to Europe and the Middle East in December 2009. 

Its local partner is Matanuska, a company involved in other plantation activities like tobacco, but with no experience in bananas. Chiquita has stated that it hopes these new African operations will be a model of responsible agribusiness development, whilst one of the investors, the Norwegian Fund for Developing Countries, states that it "works actively to promote social and environmental sustainability. Weight is given in all investments to respect for labour and human rights, while ensuring that the environment does not suffer any irremediable harm."

So far, although only 600 of the 3,000 hectares have been planted, over 900 local workers have been hired, with a target of employing up to 4,000 by 2012. In recent months, the National Union of Agricultural and Forestry Workers (SINTAF) has
succeeded in establishing new union branches at the plantation. Wages are very low compared to Latin America - at less than US $60 a month - but it is hoped that collective bargaining between the union and Matanuska will lead to progress towards
a real living wage in what is one of world's poorest countries. As Mozambique moves to enter the world banana market for the first time, attention will certainly be focused on whether Matanuska, Chiquita and the investors' good intentions are
implemented on the ground.

Sources: various trade press, www.norfund.no and 3F General Workers' Union, Denmark.