Co-op retailers report increasing engagement with banana producers in Peru through visits linked to sourcing programmes coordinated with Equal Exchange. During a recent visit, co-op staff travelled to Peru to observe banana production systems and cooperative governance structures used by supplying farmers.
According to produce category manager David Giedd, banana production in Peru is organised around small family-operated units rather than vertically integrated corporate estates. "The banana farms are very small family farms," says David. "Some of them are less than an acre." That equals less than 0.41 hectares per farm. Production volumes are aggregated through cooperative structures to meet export requirements.
David noted that the cooperative model allows growers to coordinate production decisions and negotiate collectively. "People advocate for themselves through these cooperative structures in ways that are very resilient and very intelligent and lots of hard work," he says.
Environmental management was also highlighted during the visit. Banana plants are covered with plastic protection bags used to manage pest pressure, sun exposure, and moisture retention. "They have a recycling program where the bags are collected and used to build the corner guards for pallets that transport the bananas," David says. The recycled material is reused within logistics operations linked to banana transport.
Water use remains a key management issue as the production area is located in a dry, desert-like region. Producers reportedly apply irrigation conservatively, adjusting water use when reservoir levels are low. Disease pressure, including fungal blight, is another challenge. Growers are collectively supporting research into resistant plant material with the objective of developing blight-resistant bananas.
From a commercial perspective, bananas sourced through Equal Exchange retail at around US$0.50 to US$0.60 per pound above the conventional product. David contrasted this with conventional supply chains dominated by multinational companies. "Conventional bananas end up with money going toward a transnational corporation," he says.
He added that Fair Trade premiums are used by cooperatives to fund shared investments. "Based on the Fair Trade premium, [the farmers are] able to fund projects that include infrastructure, health care, and agricultural research," David says. He noted that healthcare access has expanded to include regular checkups for cooperative members and workers.
David reported that some growers had limited access to formal education earlier in life, while newer generations are benefiting from improved infrastructure supported through cooperative investment.
"I made the choice a decade ago to bring Equal Exchange bananas and avocados to the co-op, and understood professionally what that meant," David says. "But now I understand the emotional side."
Source: Lakewinds
