Banana

Latin America, India and China together have the biggest share in the global banana production. Bananas are not only used as food. Their peels and fibers are also used for making carpets, blankets, and paper, among other things.

Did you know?

  • Why bananas are curved? Bananas grow in bunches that hang downwards all together but each individual banana grows upwards towards the direction of the sun therefore curving its shape.
  • Between 400 and 500 million people in the world rely on bananas as part of their food intake and also to create an income via local markets.

Most important export countries

  1. India
  2. China
  3. Brazil
  4. Philippines
  5. Ecuador

Most important production countries

  1. Ecuador
  2. Costa Rica
  3. Philippines
  4. Colombia
  5. Guatemala

Production chain

Bananas grow quickly on plantations which is beneficial for the 400 to 500 million people in Africa, Asia and South America who rely on bananas as part of their consumption and income. Bananas are picked (when they are still green), transported to the packing station, cut in smaller bunches, washed, labeled and packed in boxes for export. The banana bunches are shipped in refrigerated chambers to prevent the bananas from ripening. After ripening in the receiving country’s facilities, the production chain of the banana ends at the shop where consumers purchase them. Bananas are available all year round.

Problems

Most of the banana sector is controlled by five major companies. A number of these large banana companies have been accused of tax avoidance, misuse of transfer-pricing and making use of tax havens – often paying taxes only a little over 14% of profits in the past 5 years. Because many workers struggle with low wages, they find it nearly impossible to earn the minimum wage solely by working eight hours a day. The absence of labour rights and significant difficulties for workers to form labour unions are common problems in the banana sector. Workers who lose their jobs when joining a labour union are often refused work in other banana plantations. Plantations are usually not safe working environments and the use of chemicals (pesticides, herbicides, fungicides, insecticides) often affect the health of the workers. These chemicals adversely affect the environment since they pollute soil, water and the surrounding areas. Deforestation, lowering levels of biodiversity and soil fertility are also known to occur as consequences of banana plantation expansion.

Major Chain Issues

In the banana sector, Fairfood International has identified the following major chain issues:

Major chain Production stage
Abuse of Dominant Position Whole chain
Tax Avoidance Whole chain
Insufficient Income and Income Insecurity Production
Lack of Freedom of Association Production
Corruption Whole chain
Harmful Agricultural and Aquafarming Practices Production
Unhealthy and Unsafe Working Conditions Production

Solutions

The guide below shows certification schemes whose standards indicate a match with some or all of Fairfood’s researched major issues for this commodity. To learn more about the schemes, click on their logo.


Rainforest Alliance

EU Organic Labels

Naturland

Fairtrade

Global Gap

IMO Fair for Life

Production

Production

Production

Production

Production

Production
Customised sustainability initiatives
In addition to making use of standards and certification schemes, major issues in this commodity could also be addressed in a customised manner. The box below outlines a few examples of initiatives that deal with sustainability issues in this particular sector. Companies could join some of the platforms or roundtables mentioned below. These could serve as a stepping stone to increased sustainability. Other initiatives, in the form of corporate programmes and chain partnerships, could serve as inspiration for replication by other companies within the sector. To learn more about any of the initiatives, click on their logo.
Platform
World Banana Forum
In 2009, the World Banana Forum was established by various stakeholders with the goal of making banana production and trade more sustainable. Together they aim to establish an industry-wide consensus for best practices regarding workplace issues, gender equity, environmental concerns, sustainable production and economic questions. The Forum is hosted by the Food and Agriculture Organisation of the UN. Five working groups have been established to draw up a working plan to initiate projects and activities.