Bananas

Table of Contents

Forced labor and child labor risks are present in banana production, harvesting, and packing nodes in multiple geographies. This requires downstream companies to start with an understanding of the geographic footprint of their direct and indirect supply chain partners.
Labor risks present include the use of third-party labor recruiters, improper use of short-term contracts and the casualization of workers, as well as the use of piece rate wage structures. Existing certification efforts used for traceability have not always successfully identified and addressed labor risk, so companies should prioritize more focused assessments of working conditions and follow-up actions. Because labor risks are present at multiple nodes and in multiple geographies, traceability solutions should be able to identify specific production sites so that further assessments of labor conditions can be conducted.
Bananas are one of the top traded fresh fruits and therefore tend to have less transformation throughout the supply chain. In fresh fruit supply chains, this can allow for traceability approaches that create unique identifiers for batches of bananas. However, banana supply chains include producers, packers, exporters, ripening companies, and distributors, and therefore interoperability of systems is important to ensure information about the origin of products is not lost throughout the supply chain.
Banana production for export in the international market includes both large-scale plantation production controlled by multi-national fruit companies and small to mid-scale growers that feed into export supply chains. Even in more vertically integrated supply chains – for example, when an importing company owns plantations that are producing bananas – traceability efforts should account for the possibility that exported batches are supplemented with bananas from other producers. Most large plantations work under contract with multinational companies that distribute bananas to global retailers. This structure allows multinational companies to establish longer term relationships with growers, and to invest in traceability capacity as well as human and labor rights efforts. This would require a shift from current company practices that prioritize flexibility via short-term contracts.

Forced Labor or Trafficking in Persons cited by U.S. Government

Child Labor cited by U.S. Government

Risk of Forced Labor or Trafficking in Persons cited by other source

Risk of Child Labor cited by other source

Documented presence of migrant workers

Documented presence or significant likelihood of third-party labor recruiters

Documented presence of other vulnerable workers

The U.S. Department of State’s Trafficking in Persons Report has highlighted indicators of forced labor, such as identity document retention and restrictions on freedom of movement, on banana plantations in Burma and Ecuador. Laotian plantations are considered extremely vulnerable to forced labor due to the absence of oversight by local authorities.¹ The human trafficking of adults occurs on banana plantations in Ecuador, and indicators of trafficking have been noted on plantations in Laos.²
The U.S. Department of Labor has identified the presence of child labor in the production of Bananas in Belize, Brazil, Ecuador, Nicaragua, and the Philippines.³
Other sources have noted forced labor in the banana supply chain, specifically in the Philippines.⁴
Other sources have noted the presence of child laborers in the banana industry, including in the Philippines.⁵
The presence of vulnerable migrant workers has been noted on banana plantations. Workers are particularly vulnerable when undocumented.⁶ In the banana industry, migrant laborers are mostly male. Migrant workers are thought to be more vulnerable to employment insecurity, informal contracts, and temporary working arrangements.⁷ There is a documented presence of third-party labor recruiters and middlemen in the recruitment of migrant labor to banana plantations.⁸ Third-party recruiters have been noted in the Philippines and may be a risk in other countries, such as Guatemala, where third-party brokers are prevalent in the export-oriented agriculture industry.⁹

Large numbers of dispersed, unorganized, or informal small producers or other worksites

High degree of flexibility in procurement practices of downstream entities

Multiple points of aggregation, co-mingling, and/or transformation across supply chain

Complex, opaque supply chains and/or lack of vertical integration

The size and scale of banana producers differ depending on whether the bananas are produced for domestic use or exportation to global markets.¹⁰ Production of bananas for domestic use is dominated by small-scale producers, whereas 80 percent of production for export comes from larger-scale producers (100 to 400 hectares of land) – only 15 to 21 percent of banana production worldwide is exported.¹¹ The size of producers also differs between countries. Ecuador and Colombia consist of small- and medium-sized growers that are integrated into modern export chains; however, countries in West and Central Africa derive their exports from larger plantations controlled by multinational fruit companies.¹²
There has been a recent emergence of retailer-driven banana supply chains. Some larger supermarkets, primarily in the United Kingdom, have invested in creating more integrated supply chains that source directly from exporters in the country where the bananas are grown.¹³
Buyers typically have contracts with producers – providing for the possibility of longer-term investment and capacity building – but in practice, many contracts are negotiated on a short-term basis.¹⁴ When longer-term contracts are negotiated, they often include “one sided” clauses that allow the buyer to withdraw from the contract if their “margin is insufficient,”¹⁵ leaving suppliers in an unstable position and potentially without the resources to invest in due diligence and labor rights efforts.

Scale or nature of risk varies significantly based on geographic area of production

Scale or nature of risk is strongly associated with certain types of suppliers/entities

Scale or nature of risk is present across multiple tiers or nodes of supply chain (including in associated downstream or upstream goods)

The nature of the risk of forced labor and child labor is tied to the geographic region of production, as well as the size and market orientation of production.¹⁶ Producers compete for short-term contracts with large companies, incentivizing piece-rate pay, short-term contracts, sub-contracting, and the employment of vulnerable migrant workers and casualized workers.¹⁷
The highest risk is present in the cultivation stage of banana supply chains and consequently the packing stage, which is often also controlled by the producer.¹⁸

Most modern banana supply chains are structured as follows: the production and packing node, controlled by the producer; the export, import and ripening nodes, controlled by the fruit company; and the retail node, controlled by the retailer.¹⁹

In recent years, the banana supply chain has changed in certain locations as retailers increase their control over the supply chain. For example, these types of supply chains are emerging in the UK, with larger market retailers such as Morrison, Asda, and Tesco.²⁰ The emerging retailer-driven supply chain is structured as: the production and packing node, controlled by the producer; the export node, controlled by the exporter; the import node, controlled by the importer; and, the ripening and retail nodes, controlled by the retailer. In some situations, the retailer can also control the import node of the supply chain.²¹

The sustainability of the supply chain and the welfare of farmers and workers are no longer the sole responsibility of the banana trading companies, as retailers now possess significantly increased responsibility. This increased responsibility is a result of new developments in the freight markets: it is now possible to ship bananas on conventional vessels following the installation of refrigeration units.²² Some of the UK’s largest supermarkets can now source directly from producers and contract their own services for shipping and ripening, thus shortening the supply chain.²³

Cultivation and Harvesting

Packing

Transport (Export and Import)

Ripening

Wholesale and Retail

Food and Beverage

Bananas are sold for personal consumption in the consumer food and beverage sector. Bananas are one of the most consumed and cheapest fruits worldwide, and they are the most traded fruit.

Some bananas are used in the production of flour, canned slices, jam, jelly puree, vinegar, wine and beer.

India²⁵
China
Indonesia
Brazil
Ecuador
Philippines
Guatemala
Angola
Tanzania
Costa Rica

Rainforest Alliance (Identity Preservation)Rainforest Alliance (Bulk Commodity)Fairtrade International

1
Trafficking in Persons Report. United States of America Department of State, June 2021, https://www.state.gov/wp-content/uploads/2021/09/TIPR-GPA-upload-07222021.pdf.
2
Trafficking in Persons Report. United States of America Department of State, June 2021, https://www.state.gov/wp-content/uploads/2021/09/TIPR-GPA-upload-07222021.pdf.
3
List of Goods Produced by Child or Forced Labor. Bureau of International Labor Affairs, 28 September 2022, https://www.dol.gov/agencies/ilab/reports/child-labor/list-of-goods?tid=All&field_exp_good_target_id=5746&field_exp_exploitation_type_target_id_1=All&items_per_page=10
4
EO Clinic: Responsible Banana Supply Chains in the Philippines. The European Space Agency, https://eo4society.esa.int/projects/eo-clinic-0027-banana-supply-chains-philippines
5
Palatino, Mong. “Rising Child Labor Abuse in The Philippines.” The Diplomat, 17 February 2015, https://thediplomat.com/2015/02/rising-child-labor-abuse-in-the-philippines.
6
World Banana Forum – Good Practises Collection. Food and Agriculture Organisation of the United Nations, 2017, https://www.fao.org/3/i7161e/i7161e.pdf.
7
New Data on Detecting Forced Labor in Agriculture. Ergon, 5 January 2018, https://www.isealalliance.org/sites/default/files/resource/2021-05/Ergon_ISEAL%20New%20Data%20Forced%20Labour_Questionnaire%20and%20Literature%20Review%20FINAL.pdf
8
New Data on Detecting Forced Labor in Agriculture. Ergon, 5 January 2018, https://www.isealalliance.org/sites/default/files/resource/2021-05/Ergon_ISEAL%20New%20Data%20Forced%20Labour_Questionnaire%20and%20Literature%20Review%20FINAL.pdf
9
New Data on Detecting Forced Labor in Agriculture. Ergon, 5 January 2018, https://www.isealalliance.org/sites/default/files/resource/2021-05/Ergon_ISEAL%20New%20Data%20Forced%20Labour_Questionnaire%20and%20Literature%20Review%20FINAL.pdf
10
The Social, Environmental and Health Impacts of Banana Supply Chains. Rethinking Value Chains, December 2019, https://www.rethinkingvaluechains.com/wp-content/uploads/2020/07/ENG_Bananas-case-study_RVC-Openressources_December-2019.pdf.
11
Banana Value Chains in Europe and the Consequences of Unfair Trading Practises. BASIC, October 2015, https://lebasic.com/wp-content/uploads/2015/10/BASIC_MFF-Banana-Study_Final-Report_Low-Res.pdf. Page 4.
12
Banana Value Chains in Europe and the Consequences of Unfair Trading Practises. BASIC, October 2015, https://lebasic.com/wp-content/uploads/2015/10/BASIC_MFF-Banana-Study_Final-Report_Low-Res.pdf.
13
Banana Value Chains in Europe and the Consequences of Unfair Trading Practises. BASIC, October 2015, lebasic.com/wp-content/uploads/2015/10/BASIC_MFF-Banana-Study_Final-Report_Low-Res.pdf.
14
The Social, Environmental and Health Impacts of Banana Supply Chains. Rethinking Value Chains, December 2019, https://www.rethinkingvaluechains.com/wp-content/uploads/2020/07/ENG_Bananas-case-study_RVC-Openressources_December-2019.pdf.
15
Banana Value Chains in Europe and the Consequences of Unfair Trading Practises. BASIC, October 2015, https://lebasic.com/wp-content/uploads/2015/10/BASIC_MFF-Banana-Study_Final-Report_Low-Res.pdf.
16
Banana Value Chains in Europe and the Consequences of Unfair Trading Practises. BASIC, October 2015, https://lebasic.com/wp-content/uploads/2015/10/BASIC_MFF-Banana-Study_Final-Report_Low-Res.pdf.
17
Banana Value Chains in Europe and the Consequences of Unfair Trading Practises. BASIC, October 2015, https://lebasic.com/wp-content/uploads/2015/10/BASIC_MFF-Banana-Study_Final-Report_Low-Res.pdf.
18
Banana Value Chains in Europe and the Consequences of Unfair Trading Practises. BASIC, October 2015, https://lebasic.com/wp-content/uploads/2015/10/BASIC_MFF-Banana-Study_Final-Report_Low-Res.pdf.
19
Banana Value Chains in Europe and the Consequences of Unfair Trading Practises. BASIC, October 2015, lebasic.com/wp-content/uploads/2015/10/BASIC_MFF-Banana-Study_Final-Report_Low-Res.pdf.
20
Banana Value Chains in Europe and the Consequences of Unfair Trading Practises. BASIC, October 2015, lebasic.com/wp-content/uploads/2015/10/BASIC_MFF-Banana-Study_Final-Report_Low-Res.pdf.
21
Banana Value Chains in Europe and the Consequences of Unfair Trading Practises. BASIC, October 2015, lebasic.com/wp-content/uploads/2015/10/BASIC_MFF-Banana-Study_Final-Report_Low-Res.pdf.
22
Banana Value Chains in Europe and the Consequences of Unfair Trading Practises. BASIC, October 2015, lebasic.com/wp-content/uploads/2015/10/BASIC_MFF-Banana-Study_Final-Report_Low-Res.pdf.
23
Banana Value Chains in Europe and the Consequences of Unfair Trading Practises. BASIC, October 2015, lebasic.com/wp-content/uploads/2015/10/BASIC_MFF-Banana-Study_Final-Report_Low-Res.pdf.
24
List of Exporters for the Selected Product in 2021. Product: 0803 Bananas, incl. plantains, fresh or dried. ITC Trade Map, https://www.trademap.org/Country_SelProduct.aspx?nvpm=1%7c%7c%7c%7c%7c0803%7c%7c%7c4%7c1%7c1%7c2%7c1%7c%7c2%7c1%7c1%7c1.
25
Crops and Livestock Products. Food and Agriculture Organization of the United Nations, https://www.fao.org/faostat/en/#data/QCL.

Funding is provided by the United States Department of Labor under cooperative agreement number IL‐35805. 100 percent of the total costs of the project or program is financed with federal funds, for a total of USD 4,000,000. This material does not necessarily reflect the views or policies of the United States Department of Labor, nor does mention of trade names, commercial products, or organizations imply endorsement by the United States Government

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Supply Chain Characteristics that Impact Traceability

Traceability Takeaways

Nature of Labor Rights Risk/Vulnerable Workers

Features of Production and Supply Chain

Distribution of Labor Risk in Various Production Areas

Linked Upstream and Downstream Risks

Risk in Nodes in Bananas Production

Associated Downstream Goods and Consumer Sectors

Top Global Countries

Examples & Resources: Traceability Efforts Associated With Bananas

Footnotes