Fairtrade Bananas

1 Fairtrade Bananas Paper Outline I.

Executive Summary

II.

Introduction

III.

Cheapest Production process

IV.

Benefits of Fairtrade

V.

Conclusion and recommendation

VI.

Reference List

VII.

Appendix

2 Executive Summary Fair trade is a hotly discussed topic in the contemporary business world. International trade has often exposed farmers especially from the developing economies to exploitation. They have lost billions of dollars to unsuspecting agents who are out to fleece them up to their last bucks.

Fairtrade banana came into being to help contain the menace and help them harness more from their produce. Fair trade is a movement that is markets oriented and seek to foster sustainable production by third world country producers. This movement is a crusader of better returns on exports made by suppliers from developing countries. They also agitate for improved standards in both the social and environmental spheres. Fair trade is keen to observe that unfair trade practices are condemned and fair platform is created between the developed and developing economies. The movement monitors the fairing of various products such as tea and coffee among others. This report seeks to discuss fair-trade bananas, unraveling its insights and advance recommendations.

Buy this excellently written paper or order a fresh one from ace-myhomework.com

3 Fairtrade Bananas Introduction Bananas are important farm output both in domestic consumption and in commercial purposes. According to the latest statistical figures, Hundred million tonnes of this valuable output are consumed yearly over the globe. From the aforementioned figure, 15 million metric tonnes are exported (Ramson 2006). Bananas have a history and are better placed in the global market as a relatively important commodity. Bananas are ranked among the celebrated stable foodstuff in the world, it comes forth. In addition, it is arguably among the drought resistant crop that generates a lot of revenue to exporting countries. It is ranked at position five after the obvious commercial goods i.e. “cereals and coffee”. Being a drought resistant crop, many countries have invested much in its production. This move has increased the level of competition in the banana industry. However, despite the concentration of the product, only individual supplies do 20% of banana sales, the other percentage is in the hands of five large corporations. These huge corporations dictate the pricing of bananas. Their decisions are often selfish therefore disadvantaging the small-scale suppliers.

Despite the good retail prices, the large corporations subject farmers and other suppliers to dismal prices for their commodities (Dankers & Liu 2003). This has left most farmers and their employees trapped in the vicious cycle of poverty. Their living standards are inhuman as they often struggle to make ends meet. The toil of the farmers and peasants is not fully rewarded. Intermediaries, brokers and big corporates smile all the way to the bank while the hard working farmers languish in abject poverty. The payment to farmers is divided between domestic consumption and other production costs. In addition, farmers have to split the small revenue fraction to its employees who also have dependents.

4 Cheapest Production Process Large plantations have an advantage over small-scale producers. They are better placed to enjoy the benefits of economies of scale. In addition, apart from being able to cut down costs by producing on large scale, they have the muscle to export their output direct to the market.

However, despite the aforementioned advantages, the system is structured poorly. Large plantations are rattling governments the wrong way as they fail to heed to labor rules (Lamb 2008). They often seek for shorter routes to cut down their costs to ensure production process is keep very cheap. They often do not care much about the health of their workers. For example, they use many chemicals that are otherwise poisonous and detrimental to the health of their employees. Apart from harming human life, the chemicals are a threat to the ecosystem. Sound systems are a necessity to contain the imminent problems caused by large-scale owners. The benefits accrued needs to be shared with the workers who sacrifice a lot for the revenues (Raynolds, Murray & Wilkinson 2007).

Benefits of Fairtrade FAIRTRADE mark of accreditation has enhanced the standards of producing bananas.

For example, bananas that bear the certification mark are those that have been produced in a serene environment i.e. an environment that upkeeps quality standard to both the ecosystems and the society. Fair trade is not discriminatory as it accepts banana producers i.e. both the small scale and the large-scale plantations. According to Fair Trade policies, banana plantation farmers are better placed to enjoy better prices for their commodities (Josling & Taylor 2001).

Although there is a difference in the quality standards between small-scale banana farmers and plantations, Fairtrade price, i.e. the minimum and the premium paid are kept at the same level.

This move ensures that no group complains of unfair discrimination. The minimum prices and

5 premiums are meant to cushion the banana producers from the changing prices of inputs. The move to postulate a minimum price has done well in keeping small-scale producers in business.

FairTrade bananas vary from one region to another. The variance is in line with the different production costs between regions. However, FairTrade price for organic bananas is quite high compared with those of genetically modified bananas (Myers 2004).

Fairtrade bananas standards are in all aspects fair. The movement that is keen to seeing zero exploitation of small-scale producers often distributes profits equally between its members.

In addition, the decision making of this body is all-inclusive. Despite all opinions being interrogated well before adoption, each member’s say is highly valued. According to the premiums, Fairtrade of bananas agitates for a forum where workers of a plantation and management compare notes and reach an amicable resolution (Barnett et al. 2011).

Conclusion and Recommendations Fairtrade bananas has revolutionized the way of doing business as far as worker and management relationships are concerned (Arias 2003). It has ensured the upkeep of banana quality at all levels. In addition, farmers with small or large plantations are able to cater for their production costs with much ease through the minimum set price. Moreover, the agreed premiums are meant to improve the working conditions in plantations that were otherwise deplorable.

However, a lot needs to be done to market this movement. Many farmers from the developing world lack basic information about the existence of such a trade body.

6 Reference list Arias, P., 2003. The world banana economy, 1985-2002. Rome: Food & Agriculture Org. Barnett, C., Cloke, P., Clarke, N. & Malpass, A. 2011. Globalizing responsibility: The political rationalities of ethical consumption. West Sussex, UK: John Wiley & Sons Ltd. Dankers, C., & Liu, P., 2003. Environmental and social standards, certification and labelling for cash crops. Rome: Food & Agriculture Org. Josling, T. E., & Taylor T. G., eds. 2001. Banana wars: The anatomy of a trade dispute. Oxon, UK: CABI Publishing.

Lamb, H., 2008. Fighting the banana wars and other fairtrade battles. UK: Random House.

Myers, G., 2004. Banana wars: the price of free trade: a Caribbean perspective. London, UK: Zed Books Ltd. Ramson, D., 2006. The no-nonsense guide to fair trade, new edition. Oxford, OX: New Internationalist Publications Ltd. Raynolds, L., Murray, D., & Wilkinson, J., 2007. Fair trade: The challenges of transforming globalization. Oxon, UK: Taylor & Francis.

7 Appendix FairTrade premiums

(Source: Arias 2003, p. 171) The Fairtrade minimum price per box

(Source: Lamb 2008, p. 76)