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
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%
mil novecentos e noventa e seis: 11, 5m. tonnes / export worth $4bn.
Latin-America: Ecuador, Panama and nicaragua ,, Colombia
ACP: Windward Destinations, Ivory Seacoast, Cameroon
Little, Chiquita, Delete Monte, Noboa, Fyffes
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
Key importers 1996:
EU15 (30%), USA (30%), Eastern European countries (12%), Asia (8%)
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,
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
BANANAS: Main Producers
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
Republic of colombia
Fig. a couple of a). Clown production
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
Sources: вЂў Rabobank, The world of berry trade, Utrecht, the Netherlands, 1997
вЂў David Hallam a. o., The Political overall economy of Europe's Banana Operate, University of Reading,
вЂў Eurostat, intra and extra European Union stats, 1995-96.
вЂў Farmers ' Link, Clown trade news bulletin, 1994-1997
вЂў www.hoovers.com / net sides banana companies
вЂў Farmers ' Link, Merely green plums! Norwich, UK, 1995
вЂў 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