The social and Environmental Impacts caused by Vertical Integration of the Export Banana Trade in Honduras
Incredibly, bananas did not become commonplace in the United States until the mid-nineteenth century. Many Latin American countries exported bananas to America, but Honduras was the banana exporter of the world through 1970. The popularity of bananas rose correspondingly with the monopolization of banana production in Honduras. Although, the vertical integration of banana production in Honduras was not the foundation of exportation, the gradual transition from small-scale banana farmers into geographically separated monopolies expedited the overwhelming societal and environmental shifts seen by Hondurans since the late 1800’s.
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The transition from individually owned small-scale farms into three companies having a stranglehold on banana exportation started in 1912 when United Fruit received its first concession in Honduras. While Standard Fruit, Cuyamel, and United Fruit all were major players in the transformation of Honduras, United Fruit Company was the dominant company.
Furthermore, the fruit companies attained massive power in Honduras by receiving concessions from government officials by offering infrastructure, improved productivity, and sometimes bribes to the government. The concession of railroads to the fruit companies gave them power over Honduras’ natural resources. Many government officials believed that giving generous concessions to lure international investors would positively transform Honduras, and that the railroads were crucial in linking the coast to the highlands while also generating revenue for other projects. Unfortunately, this sensible assumption by the government didn’t foresee the problems in allowing the fruit companies to control the infrastructure.
The first problem with selling large tracts of land to the fruit companies while giving them essentially unchecked power arose when land surveys were undertaken. The inability to accurately survey
The Michoacan state in Mexico has become the world’s largest producer of avocadoes. Although this vegetable is grown on farms throughout this state, it is also tied to an integral network of trade and export to countries across the globe. In this essay, I will argue that like any commodity chain study, the production of the organic Hass avocado has an intricate production process, which for my commodity chain study begins in Uruapan, Mexico a town in the state of Michoacan. This analysis has indicated the crucial underlying links to trade, labour, and demand that the export of this vegetable has created throughout North America
The Brazilian acai berry has been a food staple for low income families for years and a cultural symbol for generations. This berry is vital in Brazil, where it is farmed and, until recently had a relatively small market. However, after an Oprah interview the demand for acai has become an international affair. The rising demand has created a free market; however the once inexpensive food staple has become too expensive for the low income families. This report will analyse the current markets advantages and disadvantages, followed by two possible government intervention models. The examined interventions will be export tariff and price ceiling.
What many people only know about Christopher Columbus’s expedition is that he found the Americas. While this is true, he did find a completely new frontier that was unknown to the Old World, his findings re-shaped global consumption patterns from the seventeenth century. He found a New World filled with resources that the old world hasn’t seen before. When he found the new world he brought with him European plants and animal species that were foreign to the citizens of the New World. The Columbian Exchange introduced many foods that are still essential to consumption in today’s world along with the seventeenth to nineteenth centuries. The potato is a prime example of how the Columbian Exchange changed global consumption patterns because it was nutritious and had an abundant amount of calories in it and caused a mass population increase in areas where the potato was available. The use of slaves also increased exponentially when sugar cane was introduced. This was a very cheap, productive way to produce a large amount of sugar and it was used by many Old World countries. The findings of these new world products created a rise in global consumption and production because products were introduced to the both the New World and the Old World and there instantly became a large spike in the availability of products. Along with this, the old world decided to go out and get themselves involved in the New World because they saw an opportunity
The progress made in the banana industry allows them to benefit economically. On page 19, it highlights, “The Boston Fruit Company, which would become United Fruit, dominated the trade, with a fleet that carried bananas from Jamaica to Boston, Charleston, New Orleans, and Mobile” (Cohen 17). With Sam Zemurray expanding his business it helps him and his laborers to be able to sell more and more which means double the money for them. More evidence is on page 19, “You could see them, with their carts piled high, trundling through the streets, calling, “Bananas, bananas for sale! A nickel a bunch! Yes, we have bananas, we have bananas for sale!’” (Cohen 19). Consumers are excited to have people who can sell them bananas which
John Soluri 's Banana Cultures: Agriculture, Consumption and Environmental Change in Honduras and the United States, (Which for spatial and repetitive purposes, I will refer to as Banana Cultures for the remainder of the paper), introduces the reader to a world of corporate greed, consumption, and environmental change using the history of the common, everyday fruit, the banana. He explores the various political occurrences, health problems, and changes in mass media through the rise of the consumption of the banana in the United States, and around the globe.
We eat bananas almost every day; however, most of us do not really know where these fruits come from. In Banana Cultures, John Soluri focuses on the relationship between banana production in Honduras, especially in the North Coast between roughly 1870 and 1975, and banana consumption in the U. S.. He focuses on growing, protecting, transporting, and mass marketing of bananas. John Soluri integrates Agroecology, anthropology, political economy, and history in order to trace the symbolic growth of the banana industry. The author admits that his work is highly interdisciplinary, as a desirable trait in the academic world. The study incorporates a wide range of sources, including manuscript census data from Honduras, fruit company records, published scientific records, Honduran and U.S government correspondence, oral testimonies, and ephemera from U.S mass culture. Throughout his work, he combines elements of geography, biology, social history, foreign affairs, and environmental history. Soluri also looks at labor practices and worker’s lives, changing gender roles on the banana plantations, and the effects of pesticides in the Honduran environment and people. His central argument is that United States consumption of bananas causes major social, political, and environmental change in Honduras. In addition, he looks at the banana pathogens, the ways the United States treated these fungal diseases, and the terribly detrimental effects these new treatments had on the farmers on
By 1993, the Banana Empire ceased to exist due to Panama Disease, ongoing labour issues, the rise of new competition and the increased assertiveness of host country governments all contributed to the growing intricacy of the industry. Nowadays, the modern banana farmer has been exposed to many pesticides, which have led to adverse health conditions for the majority of workers but working conditions and wages are on the rise currently. The introduction of fair trade bananas in 2004 was fundamental in bettering the working conditions for farmers and labourers.
“Historically, the banana trade symbolized economic imperialism, injustices in the global trade market, and the exploitation of agriculture-dependent third-world countries”(2). However, they remain to be one of the most profitable items in grocery stores. Making bananas crucial to economic and global food stability for countries all over the world. They are the third largest staple crop, coming only after wheat and coffee. Since bananas are such a sought after fruit, many companies have gone to extensive lengths in the to fight for a share of the market. Chiquita Brands International was one of the pioneer companies to try and globalize bananas. They took a risk and made some very critical mistakes along the way.
In the 1500s the first settlers settled in an area near the Gulf of Fonseca this territory would later be known as El Salvador. Soon after the territory was conquered by Spanish rule in 1524 and ruled by King Charles I of Spain until their independence in 1838 (Background, 2012). Struggling with the new found independence this new nation was curse with constant revolutions and over-turning of governments (Background, 2012). Situated in the middle of the fresh region called Central America this sovereign state had neither major resources nor growing economy, whereas other nations had an industry to depend on once the colonial power leaves this nation was forced to start from scratch.
Galeano portrays this moment in Latin American history as the instant U.S investors took control over the industries. He details the dangers they went through when producing one item to export for the benefit of foreigners, and how they later imported the processed goods from those same foreign countries, injecting money only overseas. The fact that Latin America needed imports to survive initiated the imperial link the U.S has upon it. As stated by Galeano, “The growing dependence on foreign supplies produces the growing identification of the interest of U.S. capitalists operating in Latin America with U.S. national security”11, bluntly showing the relationship between the United States and Latin America. “With petroleum, as with coffee or meat, rich countries profit more from the work of consuming it than do poor countries from the work of producing it”12. Because profit was not being retained in the Latin American countries, nationalization of the industries became of importance. The United States offered intervention in order to protect everyone’s interests with the proposal of free trade, but this was no more than another manipulation to continue having power over Latin America and its resources: “Latin America’s big ports, through which the wealth of its soil and subsoil passed en route to distant centers of power, were being built as instruments of the conquest and domination of the countries to which they belonged, and as conduits
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Madagascar is among the countries that are termed as least developed in the world today (United Nations, 2001). The implementation of trade agreement based on agriculture sector led to sluggishness in the various market dynamics of the available grains. In addition to this, the quantity of grains was declining and as a consequence of this, the revenues generated declined at an alarming rate. The country was therefore obliged to opt for food import. This step was taken as a result of reduction in the amount of aid granted to the government, and subsequent subsidization of exports. Since Madagascar could not afford to offer export subsidization, the country’s exports were highly affected by the established policies such as non-tariff
While globalization is a relatively new phenomenon in theory, but not necessarily in history, as of 2009 it has created transnational corporations linked to government, international economic institutions, and non-government organizations. (Steger 67). With this definition bananas are a textbook example of the globalization of tropical fruit commodities. The transnational corporations of the United States, most notably Chiquita, Dole and Del Monte, have been linked to the governments of Latin and South America, the World Trade Organization, and the “organic” fruit movement. By tracing the path from banana plantations to supermarket it becomes clear how the “morals” of capitalism have permeated
In the book, Banana: The Fate of the Fruit That Changed the World (2008), Dan Koeppel talks about the historical background of banana. He also talks about its’ importance to African farmers and its’ importance to Latin America and Asia in economic terms. He describes that a disease called blight has caused serious threats to banana crops, as it is rapidly destroying the banana crops around the world (Koeppel, 2008). In this book, the author describes the role of two mega companies; Dole and Chiquita. They are committing massacres in the name of producing cheap banana. In Latin, America Chiquita is exploiting the labor. It also supports
I am now convinced that all five countries in Central America have, or will, face political and social issues, which will cause many revolutions. And with the continuing support of the United States, these countries will struggle to emerge as a fully independent state, until they decide to no longer accept aid from external forces. But then again, that is almost impossible. Somehow, the great power will always be in a position of authority over developing