Banana Production
1. BANANAS: THE PRODUCTION CHAIN
In 1996 world production of the most important fruits was around 400 million tons. Bananas compete with grapes for second place behind citrus, both accounting for 13-14% of total world fresh fruit production. Banana production has been increasing by around 3% per year over the last decade.
Bananas are grown in all tropical regions and are one of the oldest known fruits. Because they are used as a staple food, they are of importance for domestic consumption, growing quickly and being harvested the whole year round. Since the introduction of the cultivated banana onto the US market 100 years ago, banana trade has increased rapidly. Currently, about 20% of total production is entering world trade.
World trade is dominated by three companies, Dole Foods, Chiquita Brands and Fresh Del Monte Produce, with over 100 years’ presence in banana plantation production in Central America and Colombia, and together controlling 65% of world exports. They are followed by the Ecuatorian company Noboa, which controls another 10%, and the European company Fyffes, which controls some 6-7%.
With the integration towards a single European market, the traditionally different supply sources of European and US companies led to a very complex European trade regime which has been attacked ever since it became effective in July 1993. In the past 5 years, it has dramatically influenced developments within the sector.
Table 1:
1996: 57m. tonnes, annual increase 3%
4 major producers 45% world production:
India, Brazil, Ecuador, Indonesia
Cultivation: Plantations (export);
independent growers (domestic/export)
Main companies with plantations:
Chiquita Brands, Dole Food , Fresh Del Monte Produce PRODUCTION
1996: 79% of total production:
Asia (94%); Africa (95%);
Central America (45%); South America (70%)
In main export countries only 20-25% DOMESTIC MARKET
1996: 11,5m. tonnes / export value $4bn.
Major exporters:
Latin-America: Ecuador, Costa Rica, Colombia
Asia: Philippines
ACP: Windward Islands, Ivory Coast, Cameroon
Main traders:
Dole, Chiquita, Del Monte, Noboa, Fyffes EXPORT
A strict system is needed to guarantee the quality of bananas on the market, leading to vertical integration
All major companies have their own reefer vessels
Main ports USA: Gulport, Wilmington. Philadelphia
Europe: Antwerp, Hamburg Livorno, Dover
Company owned or national agents
Distribution increasingly in direct partnerships with retail chains PACKHOUSES
EXPORT HARBOUR
TRANSPORT
IMPORT HARBOUR
RIPENING
DISTRIBUTION
RETAILCHAINS
Major importers 1996:
EU15 (30%), USA (30%), Eastern Europe (12%), Japan (8%) CONSUMPTION
2. BANANA PRODUCTION
FAO estimates for banana production for 1996/97 indicate a production increase to around 57m. tonnes, up from 45m. in 1989 and around 38m. at the beginning of that decade.
Six main producer countries (India, Brazil, Indonesia, Ecuador, Philippines, and China) account for 57% of total world production.
In order to right the ship that is America’s food industry, we need to recognize the monopolies in the U.S food industry. These massive food conglomerates must be broken up in order to create competition in the market. This will allow the completion to dictate the market. More companies means more competition, and when companies compete, the consumer wins.
John Soluri’s book, Banana Cultures, examines the production of bananas in the world market, “interactions among diverse and often divided people, not-so-diverse banana plants, and persistent yet unpredictable pathogen’s that formed and reformed tropical landscapes and livelihoods in export banana zones” (Soluri 5). Soluri talks about the historical entanglement of the Panama and Sigatoka pathogens and the export of bananas cultivation through agro-ecology. While the fungal pathogens infected Latin America, the Gros Michel banana invaded the United States. This stirred up debates over taxes, introducing new forms of dance and providing food for the population. The pathogens destroyed livelihood and earth soils affecting the exports of the bananas
Rendón, Dr. Oscar Hugo Pedraza. “Quality of the Avocado Exporting Companies to the United States of America,” World Avocado Congress. Abstracts A-48 V. 2003.
In his introduction, Soluri introduces his idea of the banana as a symbol, something that he repeats throughout the book. I believe this is one of his strongest arguments. To him, the banana is a symbol of the "distance" (2) between those who grow the banana and those who consume. According to Soluri, while the actual fruit lost its exoticism
The Brazilian acai berry has been a food staple for low income families for years and a cultural symbol for generations. This berry is vital in Brazil, where it is farmed and, until recently had a relatively small market. However, after an Oprah interview the demand for acai has become an international affair. The rising demand has created a free market; however the once inexpensive food staple has become too expensive for the low income families. This report will analyse the current markets advantages and disadvantages, followed by two possible government intervention models. The examined interventions will be export tariff and price ceiling.
Just as Adam Smith supported the Navigation Acts in Great Britain to protect the navy (their chief means of defense; Smith 1776: 464), the United States has gone to great lengths to protect their chief means of defense: the technologically advanced electronics and machinery areas. The motive for these measures has not changed over the centuries. The desire to maintain superiority over other nations and to retain the ability to defend the sovereignty of the nation have remained an important aspect of both foreign and trade policy. It is the trade policy that we are most concerned with in this paper.
in the world. Agriculture is the most important industry because; it keeps America feed, either
This highlights that a core principal of economics is the decisions and choices to be made in order to manage limited resources. Furthermore, that microeconomics pertains to the behaviours that affect these decisions and choices made at an individual level. As demonstrated by the avocado industry recently, motives and variable factors for increases/decreases in supply and demand will not always be transparent to the consumer. Therefore, to have an understanding of the concepts of microeconomics and the market can elucidate the individual consumer’s decision making rationale rather than making
on tropical agricultural products, such as coffee and bananas and its climate and resources are
First, bananas are grown in large monocultures that enable the large-scale production but cause a bunch of environmental problems. Second, the large companies are concentrating on marketing and distribution. In this way, they exacerbate the situation of the dependence of the producing countries such as Colombia and create social problems.... ... middle of paper ... ...
Does the World Trade Organization in this case represent a loss of U.S. national sovereignty? Why do you think the WTO sided with the European Union?
The total area of Uganda being used for agricultural production is increased to 42% in recent time from 24% in 1961. The production of cocoa has increased 57 times compare to the production in 1961. In terms of total planted land, plantains, cassava, sweet potatoes, and maize are the major harvested crops. Since colonial time, cotton production in Uganda decreased significantly and in the meantime, production of coffee, soy beans, and sesame seed has been increased in terms of total harvested areas and production volume. Coffee is the main export item, and it contributes to 50% of foreign earnings. Agricultural input like seed and fertilizer are costly due to high transportation costs, administrative
Fruits. (n.d.). Ministry for Primary Industries > Agriculture > Horticulture >. Retrieved April 2, 2014, from http://www.mpi.govt.nz/agriculture/horticulture/fruits
Carbohydrates and dietary fiber which is present in bananas are known to control the bowel movements which ultimately help in proper digestion. Banana is known to be good for those who are trying to get away from chronic constipation which is due to the pectin contents. Banana also is known to aid those who lessen stomach ulcers and lessening the possibility of developing gastric cancer. This fruit also is best possible and natural treatment for those suffering from acidity due to the antacid effect it has.
In conclusion, the world population is expected to grow by 100 million every year. Above ninety five percent of this population growth will come from the developing countries. This would put pressure on available resources for survival especially food in this regions. Potato production and consumption has increased in developing countries more than any other crop in the last fifty years. It is one of the most vital commodities in the world. It is grown commercially in 130 countries and about 320 million tons produced annually. It has since become a staple food for more than one billion of the world population. Potato will most likely play an increasing role in the world’s future food supply.