Price war for bananas

28-Jan-2019 - Germany

bananas are not only the most popular, but also by far the cheapest fruit. Consumers in Germany usually pay less for a kilo of bananas than for a kilo of apples from the region. Price wars between various discounters and supermarkets in Germany aim to make the tropical fruit even cheaper. Banana producers complain, however, that a further reduction in banana prices will destroy numerous jobs. It would also be impossible to meet social and ecological standards. The SÜDWIND Institute in Bonn, which has been campaigning for fairer working conditions worldwide for many years, calls on all those involved to immediately stop the current price war, which is being fought on the backs of banana workers.

When the retail company Aldi Süd announced in mid-2018 that it wanted to further reduce the price of one kilo of bananas, the discount store Lidl followed suit with its announcement that it would only offer fair-trade bananas in future. "With this intensification of competition, the German retail trade has put farmers in banana production under strong pressure," says Dr. Pedro Morazán of SÜDWIND.

The increasing concentration of power in the retail trade is now leading to a situation in which a few supermarket chains are setting prices for bananas almost on their own. The
Wholesale passes the pressure on to the export companies in the producing countries. The losers of this concentration of power are the employees in the producing countries. "Certifications such as Fairtrade can do almost nothing about it," adds Morazán.

In a recently published statement, Lidl Purchasing Manager Jan Bock now addresses an appeal to the entire banana industry: "For a long-term improvement in living and working conditions in the banana-growing countries, the entire trade must pull together". SÜDWIND welcomes this demand, but also points out the responsibility of the politicians: "The German government should work to ensure that human rights violations are prevented in the banana supply chain and that the payment of decent wages and benefits is prevented.
prices are guaranteed," Morazán continues.

"We urgently need a law that obliges companies to ensure that their businesses do not contribute to human rights abuses abroad. Supermarket chains such as Aldi would then have to reorganise their business practices and pricing policy in such a way that decent banana cultivation is possible in the producing countries," adds SÜDWIND Managing Director Martina Schaub.

SÜDWIND has been committed to economic, social and ecological justice worldwide for almost 30 years. Using concrete examples of grievances, we uncover unjust structures. We combine our research with development policy education and public relations work and carry demands in campaigns, society, companies and politics. SÜDWIND works on a non-profit and independent basis. SÜDWIND is financed by subsidies, income from contract activities as well as membership fees and donations.

https://www.yumda.com/en/news/1159335/price-war-for-bananas.html