Fairtrade bananas

Fair trade bananas are bananas produced in partnership with an alternative trade organization which focuses on increasing the price paid to small banana growers and the wages of agricultural workers. This is not a commercial brand, but a marketing strategy. Fair trade is based on higher prices paid by consumers that allow an equitable distribution of gains from trade over the chain partners.

There are many of organizations involved in producing fair trade bananas; for example, an organization called Banafair began importing uncertified/unlabeled fair trade bananas into Germany in the mid-1980s (from 500 to 1 000 tonnes annually). In 1997 Fair Trade Labeling Organizations International (FLO) was established in Bonn, Germany to consolidate various labeling initiatives and establish worldwide standards for fair trade bananas. The first fair trade labelled bananas imported to Germany were by TransFair in April 1998.

Fair Trade Labeling Organizations International, (now renamed Fair Trade International), is a large importer whose bananas bear the International FairTrade Certification Mark. FLO-CERT is the international body that inspects the farms to ensure they meet the proper social and environmental according to Fair Trade international standards.

Five companies control about 80% of the conventional banana trade. This situation, plus the intervention of various governments, has kept the price paid to banana growers and wages to workers a small percentage of the supermarket price. Examples of this effect are the banana wars; the formation of the United Fruit Company (now Chiquita Brands Intl.); the Bananagate bribery scandal; military coups to establish and maintain banana republics. There is ongoing industry conflict with unions.

FLO has different standards for small banana farms and larger banana plantations. To be eligible to display a Fair Trade Certification Mark, small farmers must create a panel of both workers and management to determine the best use of the fair trade premiums. Revenues to banana farmers must be equally shared between the working members of the cooperative or association.

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