Bananas in Colombia

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In 2002 Colombia produced 1.65 million tonnes of bananas, making it the world’s eighth largest producer. It is the fourth largest banana exporter, and in 2001 exported 1.48 million tonnes with a value of $408m.

Asoproban General Information

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Asoproban (Asociaciόn de parceleros y pequeños productores de bananos) is a first-level banana producers’ co-operative comprising 133 small producers and plot holders. It was established in 1984 and Fairtrade certified in 1998. Asoproban provides a range of services including transport, packing and exporting members’ banana crop.

Asoproban is located in Santa Marta in the Magdalena region of northwest Colombia, on the Caribbean coast. The region suffers high levels of poverty, unemployment and violence, as well as a lack of adequate infrastructure.

History

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Following the imposition of International Monetary Fund (IMF) and World Bank austerity programmes in the early 1980s, problems in the Colombian national and local banana sector reached crisis point, with banana exports threatened with cessation. Many small growers were forced to abandon farming or switch production to alternative crops but were hampered by lack of commercial assistance and unpredictable market access and prices.

As a result, 28 small banana producers joined together in an attempt to safeguard their livelihoods. Initial success triggered interest from other farmers and membership has now reached 133. 1998 saw the first visit to assess the potential for Colombian producers to link with Fairtrade. The banana market collapse of the same year, coupled with the extremely low price paid for conventional bananas, prompted Asoproban to press ahead with Fairtrade certification.

Asoproban Banana Production

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• Total land coverage of 333 hectares (823 acres)
• Average weekly production of 15,000 boxes
• Average weekly export of 15,000 boxes
• Average of 4,000 boxes per week sold to the international Fairtrade market
• At the start of 2003 Asoproban made its first sales to the UK Fairtrade market, supplying Co-op stores
• 95% of members' total income is from bananas
• Average farm size 3 hectares (7.4 acres)
  

Other Crops

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Various fruits, cassava, vegetables, and cattle (in rare cases) for home consumption.
Mango, citrus, papaya for sale to the local market and supermarkets.

A 250 hectares (618 acres) agricultural project is being established for diversification into cocoa, guava, plantain and coconut production and marketing. This is a joint venture with the departmental coffee committee (part of the national structure of the national coffee federation) and the municipal government. Co-finance is being sought from the US funded "Plan Colombia" initiative. Asoproban is organising these growers in a parallel cooperative and is trying to guarantee sales through futures contracts on the national agricultural stock market. Limited sales of mango, papaya and citrus have already been made to individual local supermarkets.

Organisational Structure

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• Administrative Board & Vigilance Board
• Agricultural Committee which oversees agricultural management, co-ordination of harvest, all transport logistics, pre- and post-harvest management, quality control in packing stations
• AGM and regular meetings enjoy 80%-100% attendance rate
• Executive Board democratically elected every two years.
  

Asoproban and Fairtrade

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Fairtrade has been of vital importance to the survival of the co-operative. It has provided the extra resources required to establish programmes to improve management, administration, technical assistance, infrastructure, and increase the welfare of members. However, Asoproban needs to increase Fairtrade sales as 74% of production is sold to the conventional market at prices that often fall below the costs of production.

The minimum Fairtrade price for Colombian bananas (revised 1 June 2006) is $6.75 per box (FOB) plus $1.00 premium to be invested in agreed business, social and environmental development projects. Decisions on use of the Fairtrade premium are taken by the Administrative Board whose members are also board members of the Fund for Social and Environmental Investments (FISA).

The following uses of the premium have been made:

• 50% direct cash payments to producers
• Irrigation system
• Software
• Rebuilding of village square, chapel, two sports fields
• Canteens and toilets built at packing stations
• Reforestation of riverbanks and roadsides
• Implementation of training programmes
• Solid waste traps built for the first time
• Rubbish collection
• 50% contribution towards local road repair costs
• Medical insurance contributions for members
• Travel for Fairtrade activities and regional meetings
• Support schemes for non-members including 100% membership of healthcare plan, hospital treatment, and funeral costs.

Other schemes implemented since Fairtrade involvement:

• Building of gas station
• Drainage and irrigation canals
• Waste and rubbish collection facilities
• Agricultural shop
• Aerial fumigation (also to non-members)
• Organic conversion programme.

Environmental

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The Agricultural Committee has cut back aerial crop spraying by three cycles to protect workers and the environment. Asoproban now sprays less than many large Colombian plantations but achieves the same levels of quality and productivity.

An organic conversion project for bananas was introduced on 56 hectares (138 acres) in 2002. Additionally an agricultural diversification programme for cocoa, guava, plantain and coconuts has been implemented, with around 58 farmers set to benefit directly.

Asoproban members have virtually eliminated use of the nematicide group of pesticides.
Herbicides have been replaced with manual weeding.
Organic fertilisers are now in use, with solid waste filters being tested.
Environmental awareness programmes are run locally.
Black Sigatoka disease still has to be tackled by spraying affected areas, but its control remains a serious concern for the future.

Social progress

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A variety of schemes are in operation, organised and funded in partnership with the local university and development organisations:

• Courses in accoutnacy and audit techniques; administration and micro enterprises.
• Farming activities including pig rearing, tropical fruit and organic farming techniques.
• Courses in dental health care, preventive health care and hygiene.
• FISA provides some funds towards schoolchildren's uniforms, travel expenses and school costs.
• The FISA collection programme delivers all plastic waste (bags, tags and rope) from banana farms at no cost to the Asomura women's co-operative for recycling.

“Without the premium price we would not still be farming. Farmers here are getting prices that do not cover their costs. We, however, have been able to cut fertiliser use by half and have started using animal manure. We have stopped using herbicides and the groundcover between plants is attracting back the wildlife. We have also built a kindergarten for 120 children and for the first time have organised waste collection in the community. We hope soon to have piped drinking water for the first time.” – Deris Ariza, Asoproban

Fairtrade Foundation 2003