Chiquita
1. The Banana Chain:
The macro economics of the Banana Trade
Adelien van de Kasteele on behalf of IUF
Amsterdam, February 1998
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
The macro economics of the Banana Trade
Adelien van de Kasteele on behalf of IUF
Amsterdam, February 1998
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
References: • Rabobank, The world of fresh fruit trade, Utrecht, the Netherlands, 1997 • David Hallam a.o., The Political economy of Europe’s Banana Trade, University of Reading, 1997 • Eurostat, intra and extra European Union statistics, 1995-96. Netherlands, 1995 • Farmers ' Link, Banana trade news bulletin, 1994-1997 • www.hoovers.com / internet sides banana companies • Farmers ' Link, Just green bananas! Norwich, UK, 1995 • The world of bananas, WINFA seminar on fair trade, 1997. 30,000 (from 35,000 in 1994) are in Central and South America (1996). Chiquita is controlled by the American Financial Corporation (AFG-USA), which has a 43% stake (1997)