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European supermarkets & the cost of cheap bananas

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Wednesday, 11 November 2015

European supermarkets & the cost of cheap bananas

A new report by Banana Link and the Fair Trade Advocacy Office FTAO shows how increasing market power and Unfair Trading Practices (UTP) of European supermarkets affect smallholder banana farmers and plantation workers. The report, “Banana value chains in Europe and the consequences of Unfair Trading Practices” details the exposure to toxic agro-chemicals, low wages and precarious work situation of many workers and farmers involved in the banana supply chain. It notes that this case is emblematic of global injustices in agricultural supply chains e.g. while wholesale banana prices have dropped since 2001, by almost 25%, retailers have increased their share of banana value by 40%. The impact on banana workers lives are non-negligible, especially as cost of living continues to rise, by as much as 278% in the Dominican Republic. The European Commission recognises the prevalence of UTPs and will decide by the end of this year whether to propose stronger regulation on this issue.

Source: fair-trade-advocacy.org