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
- Many single market countries rely on specializing and exporting primary products.
- 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
- Monoculture production can destroy ecosystems by th
- 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
- 1992 - TNC's filed a complaint to the WTO
- at the time, US TNC's controlled Latin American crops and supplied 75% of the EU market, 7% from Carribbean
- 1975 Lome Convention with former EU colonies and Europe
- 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.
- Price
- 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
- 5th most traded agricultural commodity
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