Chiquita

 Chiquita Article

1 . The Clown Chain:

The macro economics of the Clown Trade

Adelien van sobre Kasteele

on behalf of IUF

Amsterdam, February 1998

1 . PLUMS: THE PRODUCTION STRING

In mil novecentos e noventa e seis world production of the most essential fruits was around 4 hundred million tons. Bananas contend with grapes for second place behind citrus fruit, both accounting for 13-14% of total world fresh fruit production. Banana production continues to be increasing by simply around 3% per year over the last decade. Bananas are cultivated in all warm regions and are one of the most ancient known fruits. Because they are employed as a basic piece food, they are of importance intended for domestic intake, growing quickly and becoming harvested the complete year round. Considering that the introduction with the cultivated banana onto the market a century ago, banana trade has increased rapidly. At the moment, about 20% of total production is entering world trade.

World trade is definitely dominated simply by three firms, Dole Foods, Chiquita Brands and Clean Del Mazo Produce, with over 95 years' presence in banana plantation creation in Central America and Colombia, and together controlling 65% of world exports. They are then the Ecuatorian company Noboa, which controls another 10%, and the Western european company Fyffes, which handles some 6-7%.

With the incorporation towards a single European market, the usually different supply sources of Western and ALL OF US companies generated a very complex European transact regime which has been attacked since it became powerful in September 1993. During the past 5 years, it has significantly influenced advancements within the sector.

Table one particular:

1996: 57m. tonnes, annual increase 3%

4 main producers 45% world production:

India, Brazil, Ecuador, Indonesia

Cultivation: Farms (export);

self-employed growers (domestic/export)

Main companies with plantations:

Chiquita Brands, Dole Food, Fresh Delete Monte Create

PRODUCTION

mil novecentos e noventa e seis: 79% of total production:

Asia (94%); Africa (95%);

Central America (45%); South usa (70%)

In main export countries just 20-25%

HOME

MARKET

mil novecentos e noventa e seis: 11, 5m. tonnes / export worth $4bn.

Significant exporters:

Latin-America: Ecuador, Panama and nicaragua ,, Colombia

Asia: Philippines

ACP: Windward Destinations, Ivory Seacoast, Cameroon

Main traders:

Little, Chiquita, Delete Monte, Noboa, Fyffes

FOREIGN TRADE

A strict system is necessary to guarantee the quality of bananas on the market, ultimately causing vertical the use

All major corporations have their very own reefer ships

Main ports USA: Gulport, Wilmington. Phila.

Europe: Antwerp, Hamburg Livorno, Dover

Business owned or national brokers

Distribution more and more in immediate partnerships with retail stores

PACKHOUSES

EXPORT HARBOUR

TRANSPORT

IMPORT HARBOR

RIPENING

DIVISION

RETAILCHAINS

Key importers 1996:

EU15 (30%), USA (30%), Eastern European countries (12%), Asia (8%)

USAGE

2 . BANANA PRODUCTION

FAO estimates for banana production for 1996/97 indicate a production enhance to around 57m. tonnes, up from 45m. in 1989 and around 38m. at the beginning of that decade. Six key producer countries (India,

Brazil,

Indonesia,

Republic of ecuador,

Philippines, and China) are the cause of

57% of total community production.

Indonesian production has become

underestimated, yet has been

elevating significantly during the last

decade.

BANANAS: Main Producers

(000' tonnes)

10000

8000

As Number 2 a) shows, China and tiawan, Ecuador

and Indonesia have got known the

biggest embrace production, which

has more than doubled within the last

decade. In Africa expansion has been

significantly less, and creation is almost fully

directed at the domestic industry

(96%).

India

Brazil

Ecuador

Indonesia

Israel

China

6000

4000

2000

0

eighty six

88

Republic of colombia

90

80

94

96

Fig. a couple of a). Clown production

Resource FAO

97

At the start with the nineties,

expectations of fast growth as a result of

the opening of community markets led

to the development of banana

production, particularly in the export

countries

Ecuador,

Korea,

Colombia,...

Sources: • Rabobank, The world of berry trade, Utrecht, the Netherlands, 1997

• David Hallam a. o., The Political overall economy of Europe's Banana Operate, University of Reading,

97

• Eurostat, intra and extra European Union stats, 1995-96.

Netherlands, 1995

• Farmers ' Link, Clown trade news bulletin, 1994-1997

• www.hoovers.com / net sides banana companies

• Farmers ' Link, Merely green plums! Norwich, UK, 1995

• The world of bananas, WINFA seminar on reasonable trade, 97.

30, 1000 (from 35, 000 in 1994) are in Central and South America (1996).

Chiquita is regulated by the American Economic Corporation (AFG-USA), which has a 43% stake

(1997)

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