Fair Trade for Development

By Hannah Lippe

The Fairtrade certification program provides agricultural producers with certification for their products to meet stringent environmental and labor standards. It also provides international consumers with an alternative to conventionally grown and traded bananas. The program not only supports environmentally conscious and sustainable agricultural practices, but also it focuses on building the communities of growers as the profits derived from the sale of Fairtrade goods are committed to developing infrastructure, education, and health care in the agricultural communities. Additionally, Fairtrade farmers attempt to trade directly with the consumer and avoid the middlemen to maximize the return to the growers’ communities.

Price Fair Trade Bananas

Fairtrade Minimum Price and Premium

  • Producer organizations are paid a Fairtrade Minimum Price which aims to cover average sustainable costs of production. The Fairtrade Minimum Price for bananas is different for each region and is based on the costs of sustainable production.
  • The Fairtrade price for organic bananas is higher than that for conventionally grown bananas. Click here to see the full list of Fairtrade prices for bananas.
  • A Fairtrade Premium of 1 US$ per 18.14 kilo-box of bananas is paid to producer organizations.

Fairtrade Standards for small banana farmers:

  • Profits must be equally distributed among the members of the cooperative or association.
  • All members of the producer organization must have a voice in the decision-making process and in the group organization.

To find out more about the Fairtrade Standards for banana production download and read the Fresh Fruit (including bananas and wine grapes) Standard.

Fairtrade Standards for banana plantations:

  • A Joint Body, which includes workers and management, is formed to allocate the Premium funds.
  • The Premium must not be used to cover ongoing operating expenses, but rather to improve living and working conditions.
  • Forced labor and child labor of children of 15 years and under is prohibited. Work for children over 15 must not interfere with their education. They must not do work that could risk their health.
  • Workers have the right to establish or join an independent union.
  • Salaries must be equal to or higher than the regional average or the minimum wage.
  • Health and safety measures must be established in order to avoid work-related injuries.

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Additional Information:

  1. Fairtrade Labeling Organization website, which provides specific information about the producers and traders in Ecuador as well as the benefits of Fairtrade for the community and the market.
    1. Analysis of the objectives and benefits of Fairtrade producers
    2. List of Ecuador Fairtrade bananas and producers
  2. Slideshow of images of people, bananas, and land from El Guabo, one of the Fairtrade certified banana producers in Ecuador
  3. A 2003 New York Times article, “In Ecuador banana fields, child labor is key to profits,” cited in part of Starbucks’ campaign for Fairtrade in Ecuador, expressing problems of labor abuse on banana plantations.
  4. A brief synopsis of Fairtrade’s objectives and its role in Ecuador’s banana industry
  5. AllGoodBananas website, which displays a blog of two men exploring the Fairtrade banana community of El Guabo in Ecuador.  The blog offers both video and written descriptions about their experiences in and insights on the community.  The website also contains general information about the objectives and benefits of Fairtrade certified bananas.
    1. YouTube videos also from AllGoodBananas looking at the impact of Fairtrade in El Guabo
  6. A blog by a Finnish woman recounting her experience living and working in El Guabo on a Fairtrade banana plantation
  7. A review of the Fairtrade banana market demonstrating how Ecuador’s Fairtrade bananas fits into the world market, including numerous graphs depicting how Fairtrade banana exports and sales have changed in the last ten years and a discussion of future directions of Fairtrade bananas.
  8. Two scholarly articles describing the inclusion of Fairtrade certifications into the global market as mechanism for social and economic change.  These papers address Ecuador’s participation in redressing the relationship between consumers and producers through Fairtrade.
    1. Raynolds, L. T. Re-embedding global agriculture: the international and organic Fairtrade movements. Agriculture and Human Values, 17: 297-309. 2000.
    2. Murray, D.L. and Raynolds, L.T. 2000. Alternative trade in bananas: opportunities and objectives for progressive social change in the global economy. Agriculture and Human Values, 17: 65-74. 2000.