The dilemma of fair trade bananas

At Civil Eats yesterday, Aliza Wasserman explains the dilemma for the public interest entrepreneurs who are developing a fair trade banana market. The article describes a recent conference at Tufts University.

The most difficult question is whether fair trade bananas should come only from smallholders and cooperatives (preserving fair trade principles but limiting scale), or instead whether fair trade sourcing should allow larger plantations so long as they follow the stipulated principles (sacrificing a small-is-best principle but achieving a larger share of the total market).

Wasserman writes:

Fair Trade banana plantations have also been crucial to building a robust supply of Fair Trade bananas. Plantations represent both a key challenge and opportunity, by providing the promise to impact the broader industry and bring Fair Trade bananas to a larger consumer base. Nearly everyone at the conference hoped to impact the broader industry, whether they are focused on the future of small-scale or “smallholder” farmers, or the overall future of Fair Trade bananas.

But many of the presenters felt that the current pricing system, in which the Fair Trade certifying bodies, like Fair Trade International or FLO, distribute the same premium to plantation owners and small landholders alike, represents a major flaw in the system. Many in the industry believe that cooperatives of small producers should receive a premium that is linked to their higher cost of production relative to plantations, which can take advantage of economies of scale. Yet, the first banana producer to receive Fair Trade certification was a plantation, and scaling up Fair Trade would not be possible without them.

While a student at the Friedman School, Wasserman was a regular contributor to the U.S. Food Policy blog.

WCRF policy strategies to reduce non-communicable disease around the world

The World Cancer Research Fund (WCRF) this month published a new 2-page document (.pdf) summarizing the organization's recommendations on using food policy to address the problem of high rates of non-communicable diseases (NCDs).

The recommendations encourage clear nutrition labeling, healthy school meals programs, well-targeted taxes and healthy food subsidies, and restrictions on advertising for breastmilk substitutes and for unhealthy foods (especially to children).

The WCRF is an international not-for-profit umbrella organization for a network of cancer prevention organizations. WCRF literature reviews on dietary patterns and cancer risk are used by the U.S. federal government as one of several evidence sources for the Dietary Guidelines for Americans.

The WCRF policy recommendations are bolder and more activist than some policy-makers would be ready to consider in the United States, but the WCRF approach nonetheless offers a lot of insight.  For example, a background document on law and obesity prevention (.pdf) carefully considers both advantages and disadvantages of legal approaches to addressing public health nutrition challenges.  It acknowledges not just the political power of food and beverage manufacturers to thwart such policies but also the constitutional protections for commercial speech and the serious concerns consumers may have about policy interventions that limit their autonomy.

For perspective on U.S. food policy debates, it is illuminating to hear an international perspective that is (not surprisingly) comparatively interventionist, but which at the same time fully recognizes the challenges and tradeoffs involved in such policy proposals.