Bananas case study

  • Created by: steloah1
  • Created on: 28-05-22 16:33
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  • This **** is bananas
    • b-a-n-a-n-a-s
    • Issues and challenges
      • Price
        • Many single market countries rely on specializing and exporting primary products.
          • Vulnerable to price fluctuations and money generated does not reach the producers
      • Deforestation
        • land cleared for production which impacts soil fertility and biodiversity
      • Agrochemicals
        • Monoculture production can destroy ecosystems by th
          • increases the risk of disease and pest outbreaks - lack of other plant and animal species that limit the spread of disease
        • Agrochemicals are considered hazardous by the WHO - pollutes water and contaminates soil
      • Corporate power
        • Supermarkets earn 40% of price paid by consumers and 4-9% is earned by producers
        • Del Monte, Chiquita and Dole dominate  80% of the banana trade
      • Banana wars
        • Lasted fro 20 years from 1990 to the 2009 Geneva Banana Agreement
        • Why?
          • 1975 Lome Convention with former EU colonies  and Europe
            • provide special differential treatment with tarriff-free import quotas to supply EU markets
            • Intention to protect the smaller, family-run farms in the Carribbean and Africa
              • at the time, US TNC's controlled Latin American crops and supplied 75% of the EU market, 7% from Carribbean
                • 1992 - TNC's filed a complaint to the WTO
                  • Example of protectionism
        • How was it solved?
          • 2009 Geneva convention between the Eu and 11 Latin America  countries
          • Former EU colonies still unable to compete - only the Dominican republic, Belize and the Winward Isles are competing
      • 'Race to the bottom'
        • attempts to undercut the competition's prices by sacrificing quality standards or worker safety  or fair labor costs.
    • Context
      • 5th most traded agricultural commodity
        • 4th most important food in LICs and staple food for 400 million people
      • 21 million tonnes were exported in 2019
      • 90% exported from the Phillippines, Central and South America
        • Largest importers are the EU, USA, China, Japan and Russia
        • Equador is the largest trader


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