Washington, DC – Bananas. The average American eats 27.5 pounds of them a year. Getting all those bananas to your kitchen table takes a tremendous amount of effort. Equal Exchange, one of the top importers of Fairtrade organic bananas in the US, works closely with their entire supply chain to honor the hard work of small farmers. The company has established March as Banana Month to raise awareness of small-scale bananas farmers.
In a market dominated by plantations and large producers, small-scale organic banana farmers are carving out a unique niche for themselves. Fresh fruit and vegetables are the top category in organic food sales, accounting for 30 percent of total organic sales in 2015. Likewise, interest in Fairtrade produce is growing – by 25 percent in 2015 alone.
Equal Exchange believes that small farmers have the power to transform local economies and communities and Fairtrade certification can help them. When farmers band organize in to farmer-owned cooperatives, they not only pool resources to negotiate better terms of trade, but more money stays in the community.
“In Piura, the northern region of Peru, there are many distinct groups of small farmers, who on average own less than 3 hectares of land, and are linked to export through the organic banana chain,” says Leticia Gutierrez of CEPIBO Cooperative. “These better economic opportunities have increased the overall level of income, investment in other ventures, access to credit, and resulted in better housing and roads infrastructure.”
In addition to improved contract terms and a better price, Fairtrade certified banana organizations receive a Fairtrade Premium of $1 per box of bananas sold as Fairtrade. Each year, cooperative members gather to vote on how to invest the extra funds in social, economic or environmental improvement projects. In 2015, the total Premium paid to Fairtrade banana farmers globally was over $20 million.
Banana farmers elected to invest their funds in a wide variety of projects. Over 50 percent went to improving the cooperative’s business. Another 40 percent was invested in providing farmers with services and training to improve production processes so they can earn more. They key is that communities democratically decide how to best invest Fairtrade Premium funds.
At the ASOGUABO Cooperative in Ecuador, the 125 farmer members identified healthcare and education as top priorities. The Fairtrade Premium fund is used to pay for a doctor to be present at the cooperative office each Friday. Services are provided to farmers, farm workers and community members. In addition, the cooperative also invested in a local geriatric care organization and projects at 13 schools in and around the communities they serve.
This past summer, Equal Exchange brought together the members of an entire banana supply chain – including grocer, distributor and importer – to visit ASOGUABO and see the effects of Fairtrade in person (See full article here). Connecting all members of the supply chain provided context and added depth to existing relationships.
“This is what we hope for, that it really elevates society, not just the owner of the farm. That’s what we were there to see,” Jason Hollinger, General Manager of Four Season Produce, a family-owned produce distributor in Pennsylvania.
View a recap of the Ecuador visit here https://www.youtube.com/watch?v=0LeNn1VOtdo.
Source: Fairtrade America
