in the 1990s to manage banana exports, has gradually changed its role. Today it runs commercial operations with a specific developmental mission: to find and promote a range of opportunities for small farmers.
Fairtrade Bananas and Living Income With the banana industry in disarray, farmers initially turned to Fairtrade certification in the early 2000s, becoming pioneering Fairtrade banana partners. Unfortunately, Fairtrade proved unable to prevent the continuing decline of the industry. There were several reasons for this, including the rise of black sigatoka disease and the challenges of meeting growing demands from supermarket giants for visually perfect bananas. A major factor, however, was income. While certainly not getting rich under the old, preferential trade agreement, Caribbean farmers did receive something close to what today might be considered a living income. Banana farmers were often able to put aside a bit of money to save for their children’s education or invest in a house. Although Fairtrade has made an important turn toward ensuring living incomes since 2014 by developing the Global Living Wage Coalition with other certification bodies, many Fairtrade farmers have historically not received living incomes. Speaking to me from his office in Saint Lucia, Bernard Cornibert, CEO of Winfresh, reflected on the difficulties faced by Caribbean farmers, who have confronted relentless downward pressure from large-scale competitors across the globe and within the Fairtrade system. One major concern of Cornibert’s is that the Fairtrade system does not sufficiently distinguish between smallholders and large-scale farmers. For instance, Caribbean farmers have
faced increasing competition from large plantations in Latin America and West Africa that use economies of scale and, in some cases, low wages to offer lower cost Fairtrade bananas. Supermarket chains in the EU, under pressure to earn profits, opt for lower cost Fairtrade bananas from large plantations, while grocers who want to buy from smallholders in the Caribbean are not able to distinguish their products in the market and recoup the extra costs. With a situation like this, said Cornibert, “Fairtrade is not particularly helpful to the smallholder in Saint Lucia.”
Possibilities for Fair Trade Cornibert is worried that Fairtrade has become too big and volume-focused. “If you have Fairtrade on everything,” he said, “the consumer ignores the merits of Fairtrade, because everything is Fairtrade.” In the end “the Fairtrade product becomes a regular commodity.” One solution would be for Fairtrade to more clearly distinguish small farms from large with separate or identifiable labels. This would “let the consumer make the choice,” Cornibert said. Another solution lies in innovative approaches to trading fairly. Winfresh still manages banana exports under Fairtrade terms. In Saint Lucia, the industry has declined significantly since the 1990s, but farmers continue to export bananas to the EU. Winfresh also exports and ripens bananas purchased from Fairtrade farms in the Dominican Republic, where farmers report the benefits of a more stable income and community projects funded by the social premium. Increasingly, however, Winfresh has turned attention toward diversification, mov i n g i nt o va lue -a dde d food manufacturing of juice, cordials, pepper sauce, pepper mash, marinades, non-dairy frozen desserts, and bottled water. While these products are not
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yet Fairtrade certified, they provide opportunities for farmers along with employment for young workers in manufacturing in a region facing high unemployment and emigration. Winfresh works with small farmers, providing credit, technical assistance, business training, subsidized inputs like seedlings, and a guaranteed contract to buy the final product for a sustainable price. In its product development, Winfresh a ims to promote “the Caribbean way of life,” emphasizing visions of sustainable lives and products that ref lect Caribbean culture and tastes. To develop its business, Winfresh aims to start with local, regional, and diaspora markets before ramping up to larger markets in Europe and North America.
Finding a Niche in the Global Economy At the VincyFresh facility in SVG, a subsidiary of the regional Winfresh, farmers have been encouraged to grow peppers to meet increasing global demand for sauce and mash. During a tour last summer, I saw significant progress. VincyFresh has developed a state-of-the-art processing facility, drawing funds from a variety of partners, including a loan for millions of dollars from the Latin America and Caribbean–led intergovernmental organization ALBA.