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Blood Bananas (by Ryan Rodrick Beiler)

One more reason to take up dumpster diving: I've been finding lots of bananas lately, many of them from Chiquita, and many of them from Colombia. I've been aware of Chiquita's entanglements with right-wing paramilitaries, but at least I can eat the fruit with a clean conscience since none of my dollars have made their way up the corporate food chain and back down to Colombian death squads.

A recent USA Today article summarized the scandal well. This was my quote of the week for SojoMail today:

Chiquita's money helped buy weapons and ammunition used to kill innocent victims of terrorism. Simply put, defendant Chiquita funded terrorism.

That's the U.S. Justice Department, in court filings last month against Chiquita for paying off right-wing paramilitaries in Colombia. Here's the rest of the story, Harpers Index-style:

  • $1.7 million - amount Chiquita paid the Self-Defense Forces of Colombia, (Autodefensas Unidas de Colombia, AUC), a right-wing paramilitary organziation responsible for the majority of human rights abuses in Colombia's armed conflict
  • $25 million - amount Chiquita was fined after pleading guilty of paying money to a terrorist organization
  • $49.4 million - profits reaped by Chiquita from its Colombian operations between Sept. 10, 2001, when the AUC was designated a terrorist group, and January 2004, when its payments stopped. That's a number to keep in mind when Chiquita protests that it was merely trying to protect its workers.
  • 173 - Colombians allegedly murdered and in some cases tortured by right-wing militias that received payments from Chiquita, whose families are now suing the company.
  • 4,000 - number of people killed in the Uraba banana-growing region during the period when Chiquita admits to paying the AUC.
  • 1989 until 1997 - years during which Chiquita paid left-wing guerillas before the region in which they operated was taken over by the AUC

And if this makes you not want to eat Chiquita bananas, here's some more bad news:

A spreading investigation in Colombia into what is being called the "para-politics" scandal may ensnare other corporate targets. Former AUC leader Salvatore Mancuso in May told the newspaper El Tiempo in Bogota that all banana producers had paid for protection, including Dole and Del Monte. Mancuso, who was jailed after turning himself in as part of an ongoing government-backed demobilization, said his group received 1 cent for every dollar of bananas exported. "All of the banana companies paid us. Every one of them," Mancuso told the newspaper.

And one more closing thought:

"It may be true (that) you could not operate in these areas without paying the AUC. If it were al-Qaeda, that wouldn't be a defense," says Terry Collingsworth, an attorney with the International Labor Rights Fund, which has filed lawsuits against several corporations, including Chiquita, over their activities in Colombia.

Ryan Rodrick Beiler is the web editor for Sojourners. He traveled to Colombia in 2003.

 

Comments

Oh, well, they still made 24.6 mill in profits, after paying the AUC and now the government here.

The cost of doing business here, as well as there.

Otherwise, it would be, yes, we have no bananas, we have no bananas today.

Is anyone going to jail, that is the question. You know the drill: rendition, enhanced interrogation, all-expenses paid caribbean beach accommodations...

Ah. Didn't think so.

Thanks for writing about this, Ryan. I've been following this story and really disappointed by how little press it's gotten.

I stopped buying Chiquita bananas as of several weeks ago when I learned about this, which I must say, has meant that, I haven't eaten so many bananas. Alternative brands are HARD to find!

Devil's advocate mode here. Considering how those atrocities took place in the sort-of distant past (10 yrs ago) and that Chiquita has confessed and been fined, isn't it time to forgive and move on? Or should the company continue to be penalized? FWIW, (someone please correct me if I'm wrong) parts of Colombia were de facto controlled by the AUC and/or other armed groups (FARC and ELN), making some sort of payment was necessary to operate at all. A rotten situation, sure, but how's it different from paying off the mafia in certain cities "protection money?"

No wonder Chiquita banannas were really marked down at the local supermarket earlier this week!!

Another dimension of transnational operations in foreign commodity markets is the scandalously low prices paid to producers.

Programs like the certified coffee approach that guarantees fair prices to the farmers needs to be expanded to include all products and producers world-wide. These programs increase the incomes of the farmers and thereby decrease the economic hardships that underwrite unrest, upheaval, and terrorism.

More reporting, like the Chiquita piece, on these problems is needed. Most people don't know that many food products they consume are produced in circumstances that are the equal of the worst sweat shops. Consumer action could go a long way to stop not only the bribery of protection scams but also the thievery of slave wages.

My good friend John, recently retired from Chiquita and Columbia was his territory. He would fly in several times a year, and he said he was shot at many times landing and taking off. Violence is a fact there, and he had no solution to fix the problem other than abandoning Columbia. What's that do for the banana growers?

The maintenance of market dominance by all means including war is not new, but is quite shameful, but is routinely practiced where there is an uneven balance of power.

Aspects of the USA - Australian free trade agreement could be looked at this way.

Trade in many items such as food, food stuffs, counterfeits, drugs, weapons and people does not give good value to the producers. Profits are taken by those or organise the logistics. Often the final sales outlet does not make much either.

We sell oranges to Japan; the grower gets perhaps 2-3 cents per dollar of the final price. Similar for our Beef, particularly after the tariffs on the imported products.

Justice for the producer and people who work in the industries is sorely needed.

Yet in the industry I work in, world prices of wheat are corrupted by subsidies to the extent that until the ethanol boom commenced, the real price of wheat has been declined by about 0.5 1% per year since 1945. Hence we need to improve our efficiencies by that amount just to stay even.

Agricultural trade is distorted by about 450 bill$ subsidies per year world wide, and to hear countries complaining about lost sales through unauthorised copying of thier copyrighted music, films and software is to put it a bit rich.

Please subsidise your farmers as much as you like, but do not distort world trade at the same time. Exporting rural unemployment or using subsidies as a voter manipulation damages those who are not inside the protective walls.

Cheap food does not allow for the rural poor to accumulate capital to escape the poverty traps
In developed countries, such as Australia, resource destruction occurs as we must cut costs as much as possible.


Anyone in remotely warm climates (i.e. anywhere but Minnesota) can grow bananas on their own. The trees take about two years to develop, but produce boku bananas once they do.

It is unacceptable to kill innocent people, or to support those that do.

Why isn't the cry of the progressive voice just as loud to end legally sanctioned abortion as birth control? "It" is the fuel of a great corporation as well.

So Chiquita paid off Columbian paramilitaries to make business run smoother.
And Dell paid off NC legislators to make its business run smoother.
Then the anti-tobbacco lobbies paid off legislators to get their agenda passed.
And Sojourners lobbies Congress to send money collected in taxes to foreign aid recipients.

All politics is evil.

Chiquita paid off these paramilitaries which in turn provided a lot of bananas at lower cost to a lot of people. It also insured employment for the banana farmers, and pickers. It insured that the banana trees would not be burnt down, in a net loss to humanity. Are they absolved? No. But it is necessary that we keep things in perspective.

Chiquita's goal was by no means to aid or abet any military or government, but to satisfy its customers and make life better for everyone. Every businessman faces the same moral dilemma nearly anywhere he chooses to do business. Paying off those who hold political power is the most wasteful and potentially morally evil action that these businessmen have to do. But without it they would not be able to do anything.

Nathanael Snow
ndsnow@gmail.com

John Holmes,
Your note about wheat is mistaken. It is increases in yields and efficiencies that have allowed prices to fall. If you want prices to go up increase demand. But I don't see why you would want to do that. Staple foods should be as cheap as possible to help the poor be able to buy. If you are disproportionately concerned about the producer why question would be why? How many consumers are you willing to sacrifice to help one producer? If it is no longer profitable for a poor farmer to grow wheat, then he should learn to do something else! You are quite right to say that ag subsidies are among the most harmful policies to the poor. Perhaps as Christians we could buy out these subsidies to help restore free markets in agricultural goods. We should at least advocate the elimination of all subsidies (for everything - including the implicit subsidy of dairy products included in WIC programs, etc.) and free markets with zero government favors granted anywhere. The is the best thing we can do through government to help the poor - call for less government.

I'm confused - why is eating a Chiquita banana okay as long as you didn't pay for it with your own money? It's okay to eat if someone else's money paid for it?

That seem pretty hypocritical to me - enjoy a nice banana on someone else's blood money.

Comment on prices and efficiencies and distortions.

It has been said that falling agricultural prices are the result of improved agricultural efficiencies. This is quite true. Much of the result of agricultural research and development has been to drop the price of goods. At times it seems like a race to the bottom. However I have trouble with the concept that those who have production and export subsidies do not corrupt world prices for those agricultural products. I think that the EU has just about got rid of its wine lake and its butter mountain.

I would suggest that the dispute over cotton pricing found against the USA by the WTO is a good case in point

Living and working in the cereal producing areas of Australia I have contributed to the increase in potential wheat yields of 2.5 times during the last 30 years. We needed to, to cope with the decreasing terms of trade of about -1% /year. We have lost about 50% of our main production farms in the last 15 years, “Get Big or Get Out”. It has seriously damaged our country social infrastructure. This results in the withdrawal of services such as health, education and policing to name a few. Yet we are producing more and more, providing it rains sometimes. And so is the area of dry land salt which kills all vegeation.

When in South India, the level of investment in agriculture and the wages paid to farm workers and the lack of resources in the villages is in stark contrast to the systems I work in. Yet it is the world price that sets the benchmarks. Compounds a bit, as observations from many places show that improving education and well being results in lower birth rates.

The point I am making, is that the markets are set by the strong, and that additional factors such as corruption in pricing, distorted labour negotiations etc can further decrease the producer returns, and hence the economic well being of the community. This distortion can be quite damaging for those producers on the wrong side of the fence.

Prices too high for the consumers?; have a close look at the whole distribution system. In the Australian system, 35% of the supermarkets profit comes from the 25% of the floor area used for fruit and veg (10 year old figures, probably not changed much). It is easier to deal with many small producers than larger outfits. Net result is the % profit is higher. The system pays just enough to keep the system going.

Note re Bananas, in the warm to hot dry tropics (ie Top End, far north of Aust), first yield 9-12 months from planting and full yields there after. The art is to manage the crop so that you do not saturate the market at any time. Quality – reflects the cultivar and management both on farm and to market. Problem is that the price to the final market is too high, transport cost too high.

John,
Thanks for the dialog.
1. Subsidies. You are absolutely right. Subsidies are evil. All of them. Subsidies to corporations, farms, and individuals are all based on some arbitrary determination of what is rich and what is poor. They disrupt the price system and cause some resources to be overvalued while others are undervalued.

2. You say that Australia has increased yields 250% over 30 years. Well done! You go on to say that Ausies have "needed to to cope with decreasing term of trade." There are so many variables involved in the terms of trade that it is hard to discern whether a -1% is on face value good or bad. It seems to say that Australia now produces 250% of what they did 30 years ago, but the rest of the world now produces 250% plus 1% per year, over 30 years compounded = -35%, call it 337% of what they used to. So you are richer, but not as much richer. Not worth complaining about. If it no longer works, quit and do something else.

which leads us to
3. "Get big or get out" You've lost 50% of your farms. Have you lost 50% of your farm land? Why did those farms go under? Because there are increasing returns to scale. Big farms are more efficient and can produce more food than small farms. So fewer people should be farming. That leaves them free to go do something else. Pessimists call this unemployed. I call it "time to create a job for yourself." It is creative destruction, and progress requires it.
You say the infrastructure has suffered, I say it has changed. If it is worse, then leave. Go somewhere else and do something else. No one has a right to an unchanging or improving way of life.

4. You complain that markets are set by the strong. Can you imagine what this world would be like if they were set by the weak? Or the mediocre? You want to sell your wheat. Let's say you have to sell it to the LOWEST bidder. How would THAT work?!?

5. Supermarkets. I'd guess that your numbers have changed quite a bit over 10 years. Efficiencies in shipping and preserving have made fresh produce much more affordable than in the past. Maybe this is US specific, but I doubt it.

got cut off

5. Bananas. No matter what it is that you do the trick is to not saturate the market. That's easy to do though. You work 8 or 9 hours a day and then decide it isn't worth it to you to work anymore. There are decreasing returns to your work investment. The first bunch of bananas is worth a certain amount. The next bunch is worth a little less, because the most demanding customers have been satisfied. Each successive bunch is worth less until it is not worth it to produce any more.
The same is true of ice cream cones. The first is great. The second is good. The third is okay. You would probably have to pay me to eat more than 7 or 8. It is not worth it anymore.

Nathanael Snow
ndsnow@gmail.com

Some final comments

Re crop increase, sorry I left out one word, 'achievable yields by…'. Our production systems have allowed us to consistently approach the maximum wheat yields possible with the rain that falls in any season. This resulted in the yield increases over the long period which we need / needed to keep farming. Most 1st world systems have done this. We do not have any significant support from governments here.

Estimating costs and returns over years, one deflates the returns and costs to a common base. Then one can plot the changes over time. Look at the price of fuel now compared with 20 years ago how do you make a meaningful comparison.

Another way to look at it is how many kg of wheat does it take to pay for a Big Mac. The amounts have been increasing until the recent biofuel boom.

Again, I return to the point that often the producers do not get a significant increase in returns for their products even though the retail prices continue to rise in real terms.


Re markets, your anti trust laws / actions / break-ups of monopolies of the early 1900's were in part to give some justice/ equality in the market place.

I did some rough % increase on excel to get my numbers. Might not be perfect.
I also like the Big Mac index, though prices are in part determined by demand.
I abhor antitrust. The early 1900's cases were mostly witch hunts which assumed big = bad, even though in most cases the defendant had been LOWERING prices consistently over the periods in question.

Producers get marginal increases. The representative firm should expect profits to remain constant as improved yields will attract new players to the market and reduce market share. The gains are not enjoyed by producers in any industry unless protected by some sort of government barrier to entry such as a patent. The gains are enjoyed by consumers in the form of lower prices, and higher quality goods.

Please email me so we can continue this conversation.
ndsnow@gmail.com

"Global hunger could be directly attributed to meat-eating."

---Chrissie Hynde; Vegetarian Times interview

In his Pulitzer Prize nominated Diet for a New America, John Robbins writes:

"Half the world's population does not receive an adequate amount of food to eat. Ten to twenty million die annually of hunger and its effects. The Institute for Food and Development Policy reports that, 'Forty thousand children starve to death on this planet every day,' or one child every two seconds.

"The livestock population of the United States today consumes enough grain and soybeans to feed over five times the entire human population of the country. We feed these animals over 80% of the corn we grow, and over 95% of the oats. Less than half the harvested agricultural acreage in the United States is used to grow food for people. Most of it is used to grow livestock feed."

Ronald J. Sider of Evangelicals for Social Action, in his 1977 book, Rich Christians in an Age of Hunger, pointed out that 220 million Americans were eating enough food (largely because of the high consumption of grain-fed livestock) to feed over one billion people in the poorer countries.

John Robbins writes:

"The world's cattle alone, not to mention pigs and chickens, consume a quantity of food equal to the caloric needs of 8.7 billion people--nearly double the entire human population of the planet. It takes 16 pounds of grain to produce one pound of beef. According to Department of Agriculture statistics, one acre of land can grow 20,000 pounds of potatoes. That same acre of land, if used to grow cattlefeed, can produce less than 165 pounds of beef."

In his book, The Hungry Planet, Georg Bergstrom points out that protein-starved underdeveloped nations export more protein to wealthy nations than they receive. He calls this "the protein swindle." Ninety percent of the world's fish meal catch, for example, is exported to rich countries. One-third of Africa's peanut crop winds up in the stomachs of European livestock. Half the world's cereal crop is fed to livestock and the United States annually imports one million tons of vegetable protein from Third World nations--just to feed its farm animals.

Bergstrom writes: "Sometimes one wonders how many Americans and Western Europeans have grasped the fact that quite a few of their beef steaks, quarts of milk, dozens of eggs, and hundreds of broilers are the result, not of their agriculture, but of the approximately two million metric tons of protein, mostly of high quality, which astute Western businessmen channel away from the needy and hungry."

Jeremy Rifkin, author of a dozen influential books and President of the Foundation on Economic Trends, writes in his 1992 bestseller Beyond Beef:

"Cattle and other livestock are devouring much of the grain produced on the planet. It need be emphasized that this is a new phenomenon, unlike anything ever experienced before.

"Contrary to popular belief, the poor are getting poorer each year...Increased poverty has meant increased malnutrition. On the African continent, nearly one in every four human beings is malnourished. In Latin America, nearly one out of every seven people goes to bed hungry each night. In Asia and the Pacific, 28 percent of the people border on starvation, experiencing the gnawing pain of a perpetual hunger."

"In the Near East, one in ten people is underfed. Chronic hunger now affects upwards of 1.3 billion people, according to the world Health Organization--a statistic all the more striking in a world where one third of all the grain produced is being fed to cattle and other livestock. Never before in human history has such a large percentage of our species--nearly 25 percent--been malnourished.

"The transition of world agriculture from food grain to feed grains represents an...evil whose consequences may be far greater and longer lasting than any past examples of violence inflicted by men against their fellow human beings."

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