This is really playing out well for Wal-Mart. They have Transfair in their mits - using Paul Rice as a mouthpiece for Sam's Club...then on the other end they are building the most threatening WMD the banana world has ever known....the 39 cent/lb. banana.
While Dole stock prices are slumping, Del Monte and Chiquita have both benefitted primarily from higher banana prices beginning after availability and weather disrupted the banana market a few years ago.
So what does this ultimately mean you ask? No one knows.
The CEOs of Del Monte and Chiquita say they aren't budging, and it's unlikely that Dole would drop their prices since everyones costs have gone up - including farmgate prices in producer countries.
Stay tuned......
Comments
Anyone? Buehler?
OK, break it down for us, dude. Paul Rice of TransfairUSA shilling for Sam's Club is sketchy because...?
39 cents is not fair trade
so how can Wal-Mart/Sam's Club, be simultaneously an advocate for fair trade, with backing and accolades from Transfair, while also supporting a 39 cent / lb. banana?
39 cents?! This is NOT a fair trade in anyone's definition of the word, as farmers and farm workers have been forced to the bottom of the banana chain from the beginning by big banana companies and supermarkets.....and a push down on the price from the top means the farmers are the ones that get the squeeze.
but, perhaps Wal-Mart sees their Transfair badge as a corporate social responsibility project,no way to really run your whole business - you know, it's just something to add into their footnotes and some fancy press releases...doesn't really mean they have to change their business model, right?.
Even worse, perhaps Paul Rice sees the Transfair logo as only standing for some baseline poverty alleviation...thus, no change in the economic system that creates poverty is required, just a few more logos out in the market is good enough.
.....either way, the fact remains, that Wal-Mart can simultaneously shovel some more pennies down their "fair trade" supply chain - getting in return lots of feel-good press and cushier margins, all for the added purpose of subsidizing their main business model of multi-national, to-down power dynamics and free-trade poverty creation.
so what to do? I suppose it's not too dissimilar from where organics has ended up. Ask questions, and keep on top of things and know more about not only what you buy but who you buy it from.
There are standards in place...unfortunatly the way the game has been set up, is to keep pushing for a lower bar - not to challenge ourselves to go higher. In the end, also like organics, the magnifying glass and pressure is unfairly put on the farmers....it'd be nice if we pointed it back up the food chain a bit more.
ditto. what "anonymous" said
No really, Anonymous has all the points laid out, but it goes even deeper than that
Look at what's happening in Europe with Asda supermarkets, bananas, and the implications for fair trade,
Interestingly enough....for those of you paying attention at home, Asda supermarkets became the largest non-U.S. subsidiary of Wal-Mart about 10 years ago.
Let me repeat, Asda, the second largest supermarket retailer in Europe, has started to slash prices on bananas sparking a price war - and Asda is Wal-Mart is Sam's Club.
following?
What's even more intriguing is how the most we can get in the states is measly articles in the Packer, but it's hitting the Guardian across the pond.
I'm telling you right here, the economic and political climate is ripe for Wal-Mart to price-fix and practice the same slash and burn strategies that have put them at number one on the pig pile.asda execs have stated that they are the ones soaking up the cuts - not the producers....let's get some transparency on this thing please.
Sadly, few of the masses will notice, much less care except for a bunch of big signs barking a low price on bananas...."a staple household grocery item".
Consumers have been glazed over with the conveinience of a cheap and yellow tropical fruit for so long that it's become as commonplace and void of human and social connection similar only to that of SpaghettiOs, Totino's Party Pizza or a bag of Wonder Bread
.....but there's a theme here.
Not kidding folks - this is only the beginning - if the 1980's price of bananas is coming back into style, you can bet the banana clip is too.
BUT WAIT!
After adjusting for inflation, even the Manhattan Institute (certainly not the bastions of lefty progressive thought and anti-capitalist sentiment) note that bananas are already cheaper than they were in the 80s!!!
We'll have to go back to the origins of bananas, back when anarchists wore mustaches.
Fair Trade is pointless?
OK, I get it.
My question was originally aimed at teasing out a difference between Fair Trade bananas and conventional ones. The $.39/# price you quote is for conventional, not for Fair Trade bananas, after all. It's not like Wal-mart is using FT nanners as a loss leader.
But I think you have a macro, galactic vantage on this that I don't have, Ojo, and I appreciate you walking me through this. You're looking at this from the point of view that the whole freaking banana market is fixed and that Fair Trade is virtually doomed, if not irrelevent already. Yes?
Prices to Banana Farmers 30% lower
From the link that Ojo provided above. The whole article is excellent, but this bears highlighting:
The complex economics that underpin the banana trade suggest in the long term both small and large scale banana growers could suffer from a price war.
The timing is significant. In January the supermarkets will agree new contracts with their suppliers. Given the historically low prices at which the big chains are now selling bananas, they are likely to demand hefty cuts from their suppliers.
Any squeeze on suppliers' margins will be passed down the chain, with consequences for plantation workers. "Do these guys not realise what they're doing to us?" said a spokesman for the Coordinating Body of Latin American Banana Workers' Unions. "They are putting all the costs of the 'crisis' in Britain on our backs."
Plantation workers have been feeling the effects of the price wars since the millennium. "Prices to suppliers are one-third lower than seven years ago and few plantation workers now earn anything like a living wage," said Alistair Smith, international coordinator with Banana Link, which campaigns for banana workers' rights.
Elementary my dear Dragon
"Fair Trade is virtually doomed, if not irrelevent already."
My initial reason for the post was in reference to the problematic allowance of companies to offer fair trade, but even for a nominal amount of their product offerings - it's just a niche product to fill some minimal sales growth that was on some chart and graph somewhere - then in the other store they can offer a 39 cent banana as well. No comitment or structural change.
Instead of irrelevance, I'm actually saying that fair trade, that is, the 100% kind - the kind with trade relationships that empower small farmers, grow the cooperative movement, and dismantle archaic notions of bootstraps being pulled up by a protestant's invisable hand...is thee answer - and is much more relevant now than ever before...the fair trade garden may need some weeding, but it is still fruitful.
there are no other products available with the kind of realistic price tag, as that of fairly traded products. So, not irrelevant....but necessary, and only as strong as those who support it, and demand real change from it.
Conventional coffee, chocolate, sugar....it's not as though the same dots can't be connected back up the food chain to big monolith corporations and fat cats for all of these commodities. But fair trade has been the difference that has created a change in the dialogue for these products, and it stands to reason that the only thing that could possibly withstand the chaos created by a Wal-Mart price drop on bananas - is consumer demand for a fair trade economy, for a different system, for the real costs of their food system.
In fact, because Wal-Mart calls a lot of the shots and people are already getting hit with price increases, they really could have gone the other way - from 59 cents to 79 cents, and I can only assume that for the most part, the banana companies, wholesalers, competing retailers and most of all producers and farm workers, would have been happy to hear it. And consumers would've flipped the bill by paying about 5 cents more for each banana (what, at most a quarter a week?).
Instead of retailers slashing prices, for our benefit, why aren't we as consumers asking: "How much am I willing to pay for America's favorite fruit?" and "What hidden costs (social, economic, environmental ramifications) am I willing to accept for a lower price?"
But how would we know that that price increase we're willing to pay isn't just lining the pockets of the typical top 1%, how do we get it back and evenly distributed throughout the chain and perhaps even benefit the communities where the products originate???
hmmm......how in deed!
I guess until we figure that out, you can by and large get a little more than 2 1/2 fairly-traded, organic bananas for a dollar ($1 - not even most of the crap at dollar stores are just a dollar anymore). Best part is, when done correctly, everybody benefits - from consumers, straight through to the farmers and workers on the other end of the horizontal fair trade playing field.
but if all bananas were fair trade, I couldn't float this picture or this picture around anymore and throw out cliche's about fat cat capitalist pigs.....and I enjoy that almost as much as a good banana.
Is Fair Trade certification bogus?
Ojo said: "I'm actually saying that fair trade, that is, the 100% kind - the kind with trade relationships that empower small farmers, grow the cooperative movement...is thee answer."
But if I, as a shopper, can't tell the difference between that kind of Fair Trade and Wal-Mart's or Dole's brand of Fair Trade, what am I supposed to do?
And how do well-meaning shoppers tell the difference?
oh yeah...and the Walton's
family photo is another favorite to sling around on blogs.
A wise masked wrestler posted recently
"Organic is not an "end all be all" label in my shopping world, any more than local is -- Cargill and General Mills are local food companies for me -- but organic is where I start because it tells me what I want to know without calling up farmers"
Fair Trade can fit pretty nicely in that statement too. Just as you see the Organic Label as a starting point, I think the Transfair logo is perhaps a good starting point for yer average shopper. At the very least, that logo assures that there was a minimum price gaurantee paid to small farmer coops for that product (or hired labor plantations - in everything except coffee which only certifies small farmer cooperative), a social premium passed on for the coop or worker representation to democratically decide how it's spent, and some prohibited materials used for growing practices. Should there be more standards, stricter standards, a higher bar?
Yes. Yes. Yes.
But I'll go back to you Dragon, how do you tell the difference between the organic milk you buy, or the organic carrots you buy? Probably by supporting a trusted brand/farmer no doubt?
same diff.
It's unfortunate, but no single label is going to also cover everyone's specific expectations....but by and large it's a good boiler plate for your average shopper - and then it's up to the savvy consumer to make a judgement call and learn more.
Is fair trade the first thing to pop in to your head with the words Dole or Wal-Mart - probably not, and that's the thing that gets me fired up. On the other hand, Dunkin Donuts isn't a beacon for social change, but it was hip to be able to get fair trade certified espresso there....but only because there wasn't an indy coffee shop serving up fair trade java anywhere in the area.
It's a judgement call for sure, and I think the well-intentioned shopper understands that....and if they don't, I'll keep ranting and raving about the hypocrsies and inconsistencies in the system to let people know there is a difference and to look for it for themselves.
Wal-Mart: Small Farmers, Loose Change
What's this? Using my own words as ammo against me??
Well played. Well played, indeed...
You make excellent points, anonymous, and you're right to bring up the organic label in this instance. Labels are beginnings, not endings, and I totally stand by that.
But I think something has happened to the Fair Trade label that we should all be talking about, something that makes it a dodgier beginning point for information.
If I buy scary corporate organic carrots, I know that despite it being an industrially farmed product, these carrots were certified organic, i.e.,, we have very good to believe that they were grown without GMO-seed, hi-nitro fertilizer, harsh ag chemistry, and they weren't irradiated in transit. And that has value to me as a shopper. (I'd rather buy local organic, of course. Just sayin'.)
But Fair Trade has seen a more intrinsic sea change, so much so that I'm not sure that the label really is a good beginning point anymore. The brilliant Phyllis Robinson over at Small Farmers Big Change blog points to an interview with one of Fair Trade's founders, Frans Van der Hoff. I highly recommend reading Robinson's post and checking out the interview, but here's a good bit to chew on:
Somewhere along the line, [Fair Trade] certifiers began marketing Fair Trade as a poverty alleviation strategy, rather than an economic transformation model as it was originally intended. Alleviation means, "to lessen (pain, for example); to make more bearable." Fair Trade was actually created to provide producers with a basic level of security, a social net to raise people out of abject conditions so that they would have the ability to approach their situations with more complex strategies, not to alleviate, but to change their economic conditions. [emph mine]
So it's not the same diff as organics. Organics has a base of reliable info behind that label (fudged as it may be by some), while the Fair Trade ship is seriously off-course. If Wal-Mart is sending $60 or $70 grand down to banana growing communities while simultaneously taking action that slaps down whole regions economically, I do have to wonder what Fair Trade means as a beginning point for consumers to understand their farmers' lives.
Let alone as an engine of economic change.
The other problem here is something Ojo alluded to upthread, namely, that bananas are so anonymous, and we have so taken them for granted, that it's almost impossible to tell a different story on behalf of the small farmers who grow them (let alone create a new delivery chain into the US). How many Fair Trade bananacorps actually purchase from small farmer co-ops? Which companies are nurturing new economic models? Can we know that from the Fair Trade certification label? I'm not convinced we can. They think as long as they're sending down a couple extra grand and "alleviating poverty" (except when they're increasing it), that's fair.
So I guess my question stands. How do we know if a banana company is actually sourcing fruit from small banana farmers? How do we know who is doing what?
alright already Dragon - get ready for my big finish
here is an easy process for people looking to make a real economic and structural change....a banana company commited to development of a cooperative, fair trade economy and sourcing from small farmer coops
and shoppers with little time on their hands still need only to look for one label
Equal Exchange
just sayin
I know it seems like this entire thread may be eerily disguised as an infomercial, but at the end of the day...it is what Equal Exchange was founded on, and has been doing for over 20 years now ....with or without Transfair
nuff said.
Equal Exchange bananas?
Really? Aren't we a couple questions (and answers) away from this conclusion? Like...what is Transfair? How does Dole become a certified Fair Trade company?How many companies are adhering to good Fair Trade practices in the banana world? And...most importantly...
Equal Exchange sells bananas?? The hell?
But that's cool. I'll fast-forward with ya. Throw it down where we can all see it: Why is Equal Exchange the answer to the omnivore's dilemma?
goodnight dole
I figure I've made things too complex...we need to go back to picture book format to really get to the heart of this topic...and I'm too tired for creative writing tonight:
here's this rich banana executive from Del Monte
this dude from Chiquita
and here's this pesky picture again of the Dole guy
and here is a picture of El Guabo co-op back when they were only 14 farmers - now they are hundereds strong, and they work with the over 100 worker-owners of Equal Exchange cooperative
pictures tell the story so much better I think.
Proposed solution
Thanks for bringing this to light, Ojo. The situation as it stands is clearly unacceptable. So, I propose we do something about it. An online petition demanding Wal-Mart et al pay farmers a fair price for their crop is an excellent place to start. I'd challenge you to throw up a draft of one as a post, let some folks comment, edit and then publish it. Then the rest of us can circulate the link to our friends and associates. I'll even volunteer to write a press release for circulation if you or someone else pens the petition. I guarantee you we can get the attention of at least some big name lefty independent outlets-- like AlterNet-- and maybe if they pay it enough attention the big guys will want to carry the story as well.
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