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Fair Trade

Fairtrade FoundationIn 1996 just 2,500 of the 10 million or so tonnes of bananas traded worldwide were being sold under fairer terms of trade. None of these were available in Britain, and no supermarkets stocked them. These 'alternative' bananas were only sold in small independent shops or through consumer cooperatives in Germany, Switzerland, Belgium and Japan.

Thanks to concerted action by consumers and an international alliance of trade unions, farmers' associations and non-governmental organisations, bananas carrying a 'fairtrade' guarantee on the label were also available in supermarkets in thirteen European countries by April 2002. Ten years after their launch, over 100,000 tonnes of the 14 million tonnes traded worldwide are produced and sold under fairer terms of trade: a forty-fold increase. By 2005, Fairtrade labelled bananas made up nearly 50 per cent of the Swiss banana market, whilst in the United Kingdom market share reached over 5 per cent in just 5 years.

Until 2002, Fairtrade labelled bananas were marketed to British consumers using the ‘Fairtrade Mark’ and in Sweden, under the ‘Rattvisemarkt’. In the rest of Europe, North America and Japan, there were national labels bearing the name of their different 'Max Havelaar' or 'Transfair' foundations. Since 2002 however, there is a single international Fairtrade mark used by almost all the national labelling initiatives. These labels guarantee that the bananas have been produced to certain standards and that the producer gets a fair price plus a premium for investing in making social and environmental improvements.

The body responsible for setting and monitoring these social and environmental standards is the Fairtrade Labelling Organisations International (FLO) and, since 2003, its certifying arm FLO CERT Ltd. FLO International brings together 20 national labelling initiatives in Europe, North America, Japan and Australia. FLO certifies producer organisations, both small farmers and plantations, and registers traders who want to market labelled bananas. The national labelling initiatives license companies who want to sell in the consumer countries. The cost of certification and monitoring is shared between the companies licensed to use the mark in consumer markets and producers. Certified producers are monitored regularly for the compliance of their working practices with the high social and environmental standards set by FLO.

The Fairtrade system incorporates the principle of 'cost internalisation' (i.e. including the cost of social rights and environmental protection in the price paid by the consumer). Under the FLO criteria, the producers are guaranteed a minimum price that is calculated to cover full production costs plus a reasonable margin to meet basic needs. A substantial premium is also paid which can be put towards social and environmental improvements.

In the case of small farmers' organisations, members decide democratically how to spend the premium in their community. In large FLO-certified plantations, the premium goes to benefit the workers who are encouraged to organise in independent trade unions.

Social criteria also include a range of other international labour standards and health and safety requirements. Organisations must also work to eliminate all forms of gender discrimination. Additionally, producers commit themselves to minimising chemical applications, protecting water, soil and wildlife, and reducing and/or composting waste.

By the end of 2005, Fairtrade fresh bananas, banana chips and puree were being exported from small farmers' associations or cooperatives and plantations in Ecuador, the Dominican Republic, Colombia, St Lucia, St Vincent, Dominica, Grenada, Ghana, Costa Rica, Peru and Brazil. All the organisations in the Dominican Republic and Peru, as well as some of those in Ecuador, produce certified organic bananas.

At the beginning of the 21st century, the international trade in bananas faced its deepest crisis in its 100 year old history. The visions, principles and practices of fair trade are needed more than ever as this multi-billion dollar industry goes through rapid and unprecedented changes. Acting together consumers and producers have challenged the industry to change to meet the demands of sustainable production and fair trade. Nobody in the banana industry today is unaware of this challenge, but much more remains to be done.

In the Windward Islands, Fairtrade labelling, thanks to the work of the Windward Islands Farmers’ Association WINFA and thanks to British consumers, has come to represent the main hope for survival of the banana industry in an increasingly liberalised European banana market. By the end of 2005, over half the four islands’ exports were certified Fairtrade, with some 40 community-based farmers’ groups involving nearly 3000 farms. Three in every ten farmers are women. The industry is looking to convert entirely to Fairtrade production over the coming months and years.

Further Reading

Unpeeling the Banana Trade Fairtrade Foundation, 2009. Written by Alistair Smith this report provides a comprehensive guide to how Fairtrade bananas have come to account for 1 in every 4 bananas sold in the UK...what this has been achieved through this success in banana exporting communitites and the challenges to come.

For Love or Money? Fairtrade business models in the UK Supermarket Sector, Sally Smith. Paper prepared for the 3rd Fair Trade International Symposium (2008)

Fairtrade Bananas - Looking Behind the Price Tag, Fairtrade Foundation 

European Trade Rules And The Threat To Fairtrade Bananas, The Fairtrade Foundation, April 2005

The Report, Conclusions And Background Documents, including Comparative Analysis of the Main Environmental and Social Certification Programmes in the Banana Sector, of the Ad Hoc Expert Meeting on Socially and Environmentally Responsible Banana Production and Trade held by the FAO in Rome on 22-24 March 2000. The meeting gathered experts from various environmental and social certification programmes, small banana growers, auditors and consultants.

Comparative Analysis of Conventional and Fair Trade Value Chains: the Colombian Banana Case, research paper by Forero Madero and Claudia Ximena, ISS, The Hague, December 2004.  
 
Market For Organic And Fair Trade Bananas, FAO, May 1999.
  
Volta River Estates Fair Trade Bananas,  case study by Mick Blowfield and Stephanie Gallet, NRET, England, 1998

Fair Trade In Europe 2005: Facts And Figures On Fair Trade In 25 Countries, published by FLO, IFAT, NEWS! and EFTA, funded by Heinrich Böll Foundation, Germany, 2006

Organic and Fair Trade Bananas and Environmental and Social Certification in the Banana Sector, paper for Inter-Governmental Group on Bananas and Tropical Fruits, FAO, Rome, August 2003

Just Bananas? Fair Trade Banana Production In The Dominican Republic, Aimée Shreck in International Journal of Sociology of Agriculture and Food, University of California, 2002

Comparative Analysis of the Main Environmental and Social Certification Programmes in the Banana Sector, paper for FAO Ad-Hoc Expert Meeting, Rome, December 2001

Available From Banana Link

Best Of The Bunch: Fairtrade Bananas From Producer To Consumer
This colourful 20 page A4 booklet is packed with up-to-date information about fair trade bananas. It looks at the history of fair trade, the situation in the Windward Islands, how Fairtrade works, what the benefits are for producers, and the future challenges for Fairtrade bananas. It is a celebration of what has been achieved so far and inspiration for further action. Contains something useful and interesting whether you are new to the subject or already have knowledge.
£2.00 Banana Link  info@bananalink.org.uk 2001

The FAIRTRADE Mark - what it means, how it works for producers and details of how to enable your local shop to supply Fairtrade bananas.

Fair Trade Banana Song CD
"Fairtrade bananas are the best of the bunch."  Song sheets also provided.  Available from Banana Link (£5 plus p&p)

Websites

Fair Trade in Norfolk

Fairtrade Labelling Organisations (FLO) International - standards, criteria, prices, quantities, Annual Report 2004-05, etc
 
Fairtrade Foundation (UK)

Agrofair - 50 per cent producer owned Fairtrade fruit importers 

NEWS! - Network Of European World Shops 

People And Planet - Banana Price Wars And Fair Trade

 

 
Urgent action

Guatemala: End the violence against
trade unions!

Bulletin
Banana Trade News Bulletin
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The new issue of Banana Trade News Bulletin provides a comprehensive guide to the latest developments in the international banana trade.
Current Campaign
Partner sites

  Charles Léopold Mayer Foundation for Human Progress 

Fondation pour le Progrès de l’Homme  

Alliance for a responsible, plural and united world
Allliance21  

Resource site for global citizenship

DPH

Solidar

Solidar

European Fair Trade Fair

Fair trade in Europe logo

 
 
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