Responsible Retailing: The impact of cheap prices on banana plantation workers

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Responsible Retailing The impact of cheap
prices on banana plantation workers
Pamela Robinson School of Social Sciences,
Cardiff University
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A Global Banana Supply Chain
Costa Rica
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Who Rules in the Banana Supply Chain?

• Three major banana trans-national producers
  dominate the global trade Chiquita
  International, Dole Food and Fresh Del Monte
  Produce
• The global market is estimated to be worth
  approx. US 5bn (cost prices), around 6.5m tonnes
  in 2006
• The three TNC producers supply approx. 56 of the
  worlds bananas (FAO, 2007)
• Four major supermarket retail groups dominate the
  retail food market in the United Kingdom (UK)
  Tesco, Asda, Sainsbury's and Morrisons
• Annual retail market for bananas estimated at
  575m (retail prices) in 2006
• Bananas are the biggest selling fruit item in the
  UK grocery market (Key Note, 2006)

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Labour Regulation in the Banana Chain

• The Ethical Trade Initiative (ETI) Base Code
• Social Accounting International (SA) 8000
  Standard
• International Framework Agreement (IFA)
  Chiquita, COLSIBA (Coordinadona Latinoamericana
  de Sindicatos Bananeros) and the IUF
  (International Union of Foodworkers)

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Work on Banana Plantations

• Division of Labour

Cultivation
Cultivation
Packing
Packing
Harvesting
Selection
Harvesting
Selection
Packhouse
Packhouse
Field
Field
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Field work study, February - April 2006
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Work on Banana Plantations

• WORKING CONDITIONS ARE SAFE AND HYGIENIC

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Field work study, February - April 2006
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Field work study, February - April 2006
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Field work study, February - April 2006
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Work on Banana Plantations

• WORKING CONDITIONS ARE SAFE AND HYGIENIC

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Field work study, February - April 2006
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Field work study, February - April 2006
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Work on Banana Plantations

• WORKING CONDITIONS ARE SAFE AND HYGIENIC

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The Ethical Dilemma in Global Retailing

• The ethical Supermarket? Is the business of
  business just to make profit!
• Regulation in the global supply chain Voluntary
  / Self-regulation or more governed markets?
• Who is the guardian of labour standards in global
  supply chains Supermarkets/International
  Retailers, Nation-States, Trade Unions, NGOs,
  Supra-national Bodies, or Consumers?

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Ethical or Marketing Strategy?