The globalization of bananas is an example of how transnational corporations, like Chiquita, Dole, and Del Monte, are connected to governments, international economic institutions, and non-government organizations. This phenomenon, although relatively new in theory, has historical roots. As of 2009, bananas have become textbook examples of tropical fruit commodities that are part of the globalization process. These corporations have strong ties to governments in Latin and South America, the World Trade Organization, and the organic fruit movement.
The globalization of the banana market has been influenced by the principles of capitalism, including cheap labor, environmental disregard, and trade liberalization.This can be seen in the corporate-driven commodity chain of “dollar” bananas, which primarily benefits wealthy fruit companies rather than the countries and workers involved in banana production. Furthermore, consumers’ lack of awareness about their food is highlighted through the popularity of “dollar” bananas. This chain of events began with the Soto-Keith contract in Costa Rica at the beginning of the 20th century, which laid the groundwork for the United Fruit Company. This contract, signed by the Costa Rican president and an American entrepreneur, involved the construction of railroad tracks from San Jose to the port of Limon. In return for his debts being forgiven, the entrepreneur was given acres of land that would become the future banana plantations of United Fruit Company. The company was innovative in its consolidation of all aspects of the commodity chain, including plantations, railroads, shipping, marketing, and distribution, all under its control for efficiency purposes.
The banana monopoly in the region was formed due to a strong capitalist mentality of vertical integration. This monopoly resulted in United Fruit Company becoming the only player in the United States consumer market, driving out any competition. United Fruit achieved globalization through their fleet of refrigerated ships, known as the “Great White Fleet,” which connected the global South and North. The Company gained infamy for bribing governments in Latin American countries for land, leading to the term “banana republic” to describe the role of United Fruit in influencing domestic policies.
United Fruit’s actions can be summarized by the nickname locals gave them, ‘el pulpo’, which means ‘the octopus’ (Murray 12). They attempted to improve their image by changing their name twice, first in 1970 to United Brand and then again in 1984 to Chiquita. Presently, United Fruit is now known as Chiquita. Clearly, United Fruit Company was the 20th century equivalent of the transnational corporation Chiquita. Additionally, two other major transnational corporations based in the United States, Dole and Del Monte, were created as separate entities derived from United Fruit Company.
Bananas are grown year round in many tropical areas of Latin America and South America close to ports. Most exported bananas are grown within 30 degrees of the Equator (UNCTAD). Ecuador is the biggest exporter in the world, followed by Costa Rica, Colombia, and the Philippines (Josling 7). The conditions of these countries make for excellent growing conditions for bananas. Bananas require high temperatures and damp soil, which can be found in the tropical jungles of Latin America .
Bananas have a need for large areas of land during the harvesting process, and this makes Latin and South American countries highly attractive for multinational corporations to establish their operations. The growth of bananas initially begins from suckers, which are underground stems deriving from mature banana plants (http://www. schools. ash.org. au/bilambil/cbfacts. html). As the plant develops, a tree-like trunk emerges, even though bananas are classified as herbs, and clusters of bananas grow inverted from the tree. Due to their delicate nature and perishable quality, considerable attention must be given to the harvesting of bananas.
The bananas are harvested from the trunk by male “bananeros” with machetes while still green (http://www.youtube.com/watch?v=gduSoLtdqVQ). This initial stage of production on the plantation is where the greatest worker exploitation occurs. According to an article on workers’ rights in Ecuador, individuals are not valued as highly as the final product (Astorga 2). Due to many banana-exporting countries having monoculture economies, these nations heavily rely on employment and revenue generated by banana producers.
Most of these jobs are contracts, resulting in only temporary work. It is not surprising that 10 cents of every dollar spent on Chiquita bananas stays in the production process (Wiley 71). Banana workers are famously paid very low wages, and it should come as no surprise that profits benefit the rich fruit companies rather than the plantation workers. Specifically, Ecuador is known for paying the lowest wages due to the scarcity of unions. In contrast, the average daily wage in Ecuador is $2, while it is $9 in Costa Rica (STITCH). As a result, Ecuador can offer boxes of bananas at a cheaper price.
Without unions, Chiquita does not provide health insurance, overtime pay, or funds for education. The fear of losing their jobs outweighs the benefits promised by unions, as Chiquita relies on low-cost labor for profitability. Banana workers endure demanding working conditions, often laboring twelve-hour days while carrying heavy banana bunches cut from the tree trunk. In addition to the social impact on plantation workers, the production stage also poses environmental ramifications. Pesticides negatively impact humans, animals, and the surrounding ecosystem.
According to Astorga (4), Costa Rica has a significantly higher usage of pesticides in comparison to industrialized nations, with a ratio that is 16 times greater. Plantations in Costa Rica employ various methods for pesticide application, including knapsack sprayers, aerial spraying, and the use of plastic bags to cover bananas. The utilization of pesticides also extends to packing plants (Astorga 2-7). Regrettably, workers often lack protection from these hazardous chemicals and are exposed to toxic fumes. Certain pesticides have been scientifically proven to cause cancer and male sterility (Astorga). In 1990, the World Health Organization (WHO) reported that approximately 3% of agricultural workers worldwide suffer from poisoning annually.
Moreover, the water source near plantations gets contaminated by pesticides, resulting in the devastation of fish and coral reefs. Furthermore, banana cultivation contributes to environmental issues like deforestation and the reduction of biodiversity caused by clearing forests for plantations. These activities also adversely affect soil fertility. Additionally, bananas from the plantation are transported to packing plants using cables capable of bearing bunches’ weight. Packing plants mainly employ women due to limited alternative job opportunities.
Here, they engage in quality control by sifting through bunches of bananas. Bananas with blemishes that do not meet the corporation’s quality standard are sent to the local market. Additionally, women apply additional chemicals to the bananas and affix stickers. It should be noted that packing plants have been found to employ child labor, as documented by the Human Rights Organization, which also provides information on sexual harassment in these plants. The final step involves placing the bananas in boxes and transporting them to shipping ports via trucks or trains.
The refrigerated boats store the boxes of bananas to prevent ripening before being transported to different ports for import. This leads to the widely known “Banana Wars” between the United States and the European Union, an ongoing trade dispute initiated in 1992. The European Union is notorious for its preferential trade agreements with former colonies in the Caribbean and Africa. Additionally, bananas imported from other areas face tariffs imposed by the European Union.
The WTO ruled in favor of the United States and other South American countries challenging the tariffs. Imported bananas are transported to ripening rooms where they undergo treatment with ethylene, a chemical that gives them the desired yellow appearance found in supermarket bananas. Once ripened, the bananas are then distributed to supermarkets throughout the United States. This illustrates the significant control that Chiquita has over all aspects of the commodity chain in the journey of bananas from South America to North America.
Further evidence supports the notion that fruit companies earn significantly more profit than the countries and producers they originate from. The sources that contribute to this perspective include the following:
Rough Draft Bibliography Affairs, NotiSur – South American Political and Economic. CHIQUITA BANANA CORPORATION FORCED TO PAY US$25 MILLION FINE FOR SUPPORTING PARAMILITARY GROUP. 29 June 2007. 13 February 2009.
Astorga, Yamileth. The Environmental Impact of the Banana Industry: A Case Study of Costa Rica. 13 February 2009.
Frundt, Henry J. “CENTRAL AMERICAN UNIONS IN THE ERA OF GLOBALIZATION.” Latin American Research Review 37. (June 2002): 7-53. Academic Search Complete. EBSCO. [Library name], [City], [State abbreviation]. 3 Mar. 2009.
Hamer, Ed. The Banana Brief. 6 February 2008. 13 February 2009.
Raynolds, Douglas Murray and Laura. “Yes, We Have no Bananas: Re-regulating Global and Regional Trade.” International Journal of Sociology of Agriculture and Food. (1998): 10-12.
Spreen, Mechel Paggi and Tom. “Overview of the World Banana Market.” Taylor, Timothy Josling and Timothy. Banana Wars: The Anatomy of a Trade Dispute. Wallingford: CABI Publishing, 2003. 7. STITCH.
The Truth on Your Table: Facts about Women Workers in the Banana Industry. 13 February 2009 < http://www. stitchonline. org/archives/StitchBananaFactSheet. pdf>. Striffler, Steve. “Wedded to Work: Class Struggles and Gendered Identities in the Restructuring of the Ecuadorian Banana Industry. ” Identities 6. 1 (June 1999): 91. Academic Search Complete. EBSCO. [Library name], [City], [State abbreviation]. 3 Mar. 2009 . Tainted Harvest: child labor and obstacles to organizing on Ecuador’s Banana plantations. New York: Human Rights Watch, 2002. UNCTAD. Banana Crop.
