FOOD AND ENVIRONMENT
Fair trade
Bananas stored at about 57ºF
(14ºC) have extended shelf
lives. This helps farmers sell their
produce despite seasonal,
environmental, and economic
fluctuations.
Most supermarkets now
stock fair-trade produce,
but the primary driver for greater
representation of fairly traded
foods is consumer choice
and pressure.
Fair trade
A tiny number of enormous global corporations dominate
each stage of the complex chain that brings food from
field to plate. Powerful businesses use their influence
to maximize their share of profits, which keeps food
producers, often in the developing world, in poverty.
Fair trade can help farmers and businesses alike.
What is fair trade?
The principle of fair trade can always be applied when doing business.
However, food can only be labeled as fairly traded if companies join a
certification system that makes sure their supply chains follow strict guidelines.
These include paying their farmers and workers fairly and providing farmers in the
developing world the opportunity to sell their produce on the international market.
Fair trade food gives consumers a chance to help farmers at the other end of the
supply chain. Organizations that support fair trade work with millions of farmers
around the world, especially those producing fruit, sugar, cocoa, tea, and coffee.
A farmer and some workers will
grow bananas on a fair-trade
certified farm (or plantation). The
fair trade program provides
the materials they
need.
The farm's profits are shared
evenly between those in the
local community who are
members of the farm's
cooperative.
Fair-trade importers minimize
the number of middlemen
taking a cut of the profit.
Producers and ethical
investors may influence
distribution.
Transportation of the bananas is
organized by liaising with the
transportation networks of the
retailers—especially big
supermarkets.
ARE THERE
ANY ALTERNATIVES?
Some coffee roasters
negotiate one-to-one with
buyers (direct trade) as an
alternative to fair trade—they
do this for many reasons,
including avoidance of
fair trade certification
fees.
1
4
2
5
3
6
F
A
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M
C
O
O
P
E
R
A
T
I
V
E
S
T
R
A
N
S
P
O
R
T
A
T
I
O
N
I
M
P
O
R
T
E
R
S
T
O
R
A
G
E
S
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US_234-235_Fair_trade.indd 234 23/02/2017 11:28
234
FOOD AND ENVIRONMENT
Fair trade
235
WORKERS
6.25%
PLANTATION OWNER
25%
TRANSPORTATION
EU TARIFF
12.5%
RIPENERS
14.6%
RETAILER
8.65%
BANANAS GROWN IN ECUADOR AND SOLD TO THE EU
C
O
N
V
E
N
T
I
O
N
A
L
B
A
N
A
N
A
Much of the world's food supply
is controlled by a few relatively
large corporations. They oversee
production, distribution, and gain
most of the profit. This means
they influence consumer tastes,
and, hence, demand—creating
a difficult-to-break cycle.
GLOBAL PRODUCERS
Fairly traded banana
A larger proportion of the price
of a fairly traded banana is paid
to the farmer and workers, despite
distributing a portion to the local
community and reserving a cut for
the fair-trade certifiers. The retailer
benefits financially from a fairly
traded banana so that they have the
incentive to promote fair trade.
Conventional banana
Almost none of the banana's value
produced by the conventional
pathway is passed on to the
farmworkers. There are multiple
intermediate steps (within each
breakdown) between producer
and consumer, and the bananas take
weeks to get from plantation to plate.
SUPERMARKET
A large
percentage is
paid toward
transportation
and shipping
A large percentage is
paid to the retailer
A lower percentage is
paid as an EU tariff
A high percentage
is paid as an
EU tariff
A lower percentage is
paid to importers
A large
percentage is
paid to farmers
A lower percentage
is paid towards
transportation and
shipping
This amount is
distributed among
half the workers of a
banana traded
conventionally
This amount is divided among
twice the number of workers
than a fairly traded banana
33%
A large percentage
is paid to a
plantation owner
PRICE
12¢
PRICE
25¢
WORKERS
5.6%
FARMERS
14%
COMMUNITIES 2.4%
CERTIFIERS
4%
TRANSPORTATION
18%
EU TARIFF
6%
IMPORTERS
9%
RETAILER
41%
F
A
I
R
L
Y
T
R
A
D
E
D
B
A
N
A
N
A
US_234-235_Fair_trade.indd 235 18/01/2017 09:49
234
FOOD AND ENVIRONMENT
Fair trade
235
WORKERS
6.25%
PLANTATION OWNER
25%
TRANSPORTATION
EU TARIFF
12.5%
RIPENERS
14.6%
RETAILER
8.65%
BANANAS GROWN IN ECUADOR AND SOLD TO THE EU
C
O
N
V
E
N
T
I
O
N
A
L
B
A
N
A
N
A
Much of the world's food supply
is controlled by a few relatively
large corporations. They oversee
production, distribution, and gain
most of the profit. This means
they influence consumer tastes,
and, hence, demand—creating
a difficult-to-break cycle.
GLOBAL PRODUCERS
Fairly traded banana
A larger proportion of the price
of a fairly traded banana is paid
to the farmer and workers, despite
distributing a portion to the local
community and reserving a cut for
the fair-trade certifiers. The retailer
benefits financially from a fairly
traded banana so that they have the
incentive to promote fair trade.
Conventional banana
Almost none of the banana's value
produced by the conventional
pathway is passed on to the
farmworkers. There are multiple
intermediate steps (within each
breakdown) between producer
and consumer, and the bananas take
weeks to get from plantation to plate.
SUPERMARKET
A large
percentage is
paid toward
transportation
and shipping
A large percentage is
paid to the retailer
A lower percentage is
paid as an EU tariff
A high percentage
is paid as an
EU tariff
A lower percentage is
paid to importers
A large
percentage is
paid to farmers
A lower percentage
is paid towards
transportation and
shipping
This amount is
distributed among
half the workers of a
banana traded
conventionally
This amount is divided among
twice the number of workers
than a fairly traded banana
33%
A large percentage
is paid to a
plantation owner
PRICE
12¢
PRICE
25¢
WORKERS
5.6%
FARMERS
14%
COMMUNITIES 2.4%
CERTIFIERS
4%
TRANSPORTATION
18%
EU TARIFF
6%
IMPORTERS
9%
RETAILER
41%
F
A
I
R
L
Y
T
R
A
D
E
D
B
A
N
A
N
A
US_234-235_Fair_trade.indd 235 18/01/2017 09:49
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