How Fairtrade is helping revive Saint Lucia’s beleaguered banana industry
Bananas were one of the first tropical fruits exported to European markets; now they can be found in every grocery store around the world. But it’s been a long journey for the world’s best loved fruit and its farmers – particularly in the Windward Islands where producers have had to battle shifting global trade alliances, natural disasters and rising costs.
Almost all banana farmers in the Eastern Caribbean are designated Fairtrade producers, making them part of a global social movement that focuses on improving working conditions and creating development opportunities for small farmers and labourers. There are around 300 Fairtrade farmers in Saint Lucia, all producing bananas which are shipped to the UK. The Fairtrade label has been a lifeline for these farmers, as it helps the industry get back on its feet.
BRINGING BACK BANANAS
Saint Lucia’s banana industry has a turbulent history. Once a thriving and profitable mainstay of local agriculture, the sector began declining in the 1990s when the European Union re-examined its system of preferential market access and began harmonising tariffs and quotas. Saint Lucia found itself buffeted by the resulting increased competition and lowered prices. Several devastating hurricanes in the early 2000s also weakened the sector. The country’s banana farmers saw their livelihoods rapidly dwindle and many left the sector, diversifying into other crops or abandoning agriculture altogether.
In recent years there’s been something of a rebound, however. Agriculture Minister Ezechiel Joseph said the sector produced almost 20,000 tonnes of bananas in 2017 – an almost 300 per cent increase from the previous year. While the numbers are still a far cry from the island’s heyday (Saint Lucia shipped 132,000 tonnes in 1992), it is a positive sign that demand remains strong and growth is on the horizon.
The Fairtrade system has a part to play in this recovery, generating employment, stabilising incomes, investing in infrastructure and establishing support networks within countries and across the region.
INVESTING IN COMMUNITIES
The official Fairtrade designation covers a vast global network of small farmers, co-operatives and workers. There are over 1.6m Fairtrade farmers and workers worldwide, and 21% of them are found in Latin America and the Caribbean. Efforts to establish a national Fairtrade body began in Saint Lucia in 2002 and the National Fairtrade Organization (St Lucia) Inc (NFTOSL) was formally launched in 2004.
The Fairtrade standards, enshrined in a Charter of Principles in 2009, cover a wide range of issues such as fair wages for workers, decent working conditions, health and safety standards and terms of trade. Under the scheme, producers that meet those standards are guaranteed a minimum price for their goods to ensure they can cover their costs and continue trading in the face of market volatility. The minimum price is designed to act as a safety net, protecting farmers’ incomes when times get tough.
“Farmers receive a Fairtrade minimum price, which is higher than the price for generic bananas on the market. This makes their business more attractive and assists them in meeting the high cost of banana production, which is much higher [in the Caribbean] than in most other regions,” explains NFTOSL General Manager Silvanius Fontenard. “This increases the income earned by the industry, and obviously the country.”
Alongside the minimum price, producers also receive a Fairtrade premium. This is an additional sum that’s earmarked for farmers and their communities. The premium for Saint Lucia’s farmers is US$1 per box on 90% of the fruit sold (the first 10% does not earn a premium). The funds are siphoned off into a communal fund and used to improve local social, economic and environmental conditions. The farmers themselves decide where the money is best spent, whether on healthcare, education or reinvested into their businesses, funding new agricultural equipment or facilities. In this way, the Fairtrade benefits ripple outward, impacting not only farmers inside the network but also their families, their communities and, ultimately, their countries. In 2015 nearly EUR 80m was invested in the region through Fairtrade premiums, 67% of the global total.
In the last decade, the NFTOSL has invested over EC$2.6m into social projects that have benefitted some of Saint Lucia’s most deprived communities. In one example, Fairtrade farmers in the Mabouya Valley used their premium to fund a school and developmental centre for children with special needs.
SUSTAINABILITY AND SURVIVAL
Faced with increasing competition in a crowded market and more intense environmental threats, Caribbean banana farmers are struggling. In Saint Lucia the Fairtrade system is a vital part of keeping the industry alive, according to Fontenard who says: “The cost of production of bananas is very high compared to in Latin America and Africa, who are our main competitors in the UK market. As a result, the survival of the banana farmers here is enhanced by the Fairtrade price and social premium. Without the Fairtrade system it would be very difficult for most farmers here to make a living.”
Fairtrade is not without its critics, however. The biggest market for Saint Lucia’s bananas is the UK, where the brand has taken a hit in recent years due to rumours of mismanagement, oversupply and failure to enforce Fairtrade standards.
Transparency and data management is a key area of focus for the Latin American and Caribbean Network of Fair Trade Small Producers and Workers (CLAC). In its 2018 Banana Plan, the group has set a goal of strengthening its Monitoring, Evaluation and Learning Department which governs certification, standards and the collection of research and data for partner organisations and consumers.
“The Fairtrade standards, enshrined in a Charter of Principles in 2009, cover a wide range of issues such as fair wages for workers, decent working conditions, health and safety standards and terms of trade.”
As Fairtrade organisations move to quell concerns, demand for Fairtrade is now on the rise. The latest generation of shoppers is more likely to be ethical consumers who understand their purchasing power and have a desire to affect change. In 2016 the global Fairtrade banana market rose by 5%, with just under 600,000 tonnes of the fruit sold worldwide.
Fairtrade International celebrated its 20th anniversary last year. Looking ahead to the future, the organisation has drawn up a comprehensive strategy that details its goals through to 2020. Priorities on this roadmap include building resilient agriculture in the face of climate change concerns, empowering more women and young people in farming and developing more beneficial relationships with commercial partners.
CLAC is responsible for guiding these efforts in the Caribbean, and also wants to align its strategy with the region’s Sustainable Development Goals. According to CLAC Chair Marike de Peña: “We have arrived at a crucial moment in time. These goals aim to build a more equitable, inclusive and resilient society. Building a more sustainable world requires action, and must be regarded as an obligation to our children and future generations.”
