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Fairtrade Fortnight: the great banana ‘price war’ uncovered

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Bananas are one of the world’s favourite fruits. In the UK, we eat 100 bananas per year on average and spend hundreds of millions of pounds on them, usually buying them from supermarkets.

The average price for a loose banana today is 11p. If we think about it, it sounds rather astonishing, considering that this fruit comes from far away – usually from Colombia, Ecuador and the Dominican Republic.

It is even more amazing if you realise that we pay 20p for an apple grown in the UK. Where does that price difference lie? Unfortunately, it hits the poorest.

According to the Fairtrade Foundation, which has launched its latest campaign focusing on bananas, farmers in the developing world are stuck into a poverty cycle, because retailers in the UK are selling bananas for a too low price.

There are structural problems in certain aspects of trade, which makes gain for farmers virtually impossible”, said the Fairtrade Foundation chief Michael Gidney.

“The problem with bananas is essentially a very, very aggressive price war. The market is so incredibly competitive with retailers chasing each other on price.”

In fact, over the past ten years, the price of bread has increased by more than 120%, while the price of sugar has doubled. In comparison, the price of bananas has decreased by 20%, despite farmers facing production cost increases of 85%. And that squeeze is heavily affecting farmers.

The aim of the campaign launched during the Fairtrade Fortnight is clear: supermarkets need to pay a fairer price for bananas that do not come from the Fairtrade circuit and therefore do not guarantee a minimum price for farmers.

This is not just because farmers are literally losing money and spending more than what they get back, without the chance to build resilient businesses, but also because the ‘price war’ that goes on within the retail sector is penalising those retailers – such as the Co-operative, Sainsbury’s and Waitrose, that have committed to sell 100% fairtrade bananas.

Barbara Crowther, director of policy and public affairs at the Fairtrade Foundation told Blue & Green Tomorrow, “A few years ago, Mark Price, managing director of Waitrose said that because they wanted to maintain their commitment to Fairtrade but they also wanted to stay competitive with retailers whose bananas were not fairtrade, they were losing hundreds of thousands of pounds a week in the price war”.

Albeiro Alfonso “Foncho” Cantillo is a banana farmer from Colombia, member of the Coobafrio Co-operative, who has travelled to the UK for Fairtrade Fortnight as an ambassador for banana farmers in developing countries. Around 60% of his bananas go into the Fairtrade circuit but the remaining share does not.

He knows for a fact the difference between farming for the fairtrade and the mainstream market, and said that the price he is paid for his non-fairtrade bananas is far too low – about $8.15 for a box against the $9 it costs to produce it.

Farmers outside of the fairtrade system have less possibility to invest in the productivity of their farm. So on the long term, they have no possibility to offset the price pressure, unlike fairtrade farmers”, said Foncho.

There is a structural economic problem in banana supply chain and even if farmers like Foncho are protected by the Fairtrade system, they are not protected for the conventional bananas”, said Crowther.

We are looking for structural solutions”, she added, explaining that the aim of the campaign is to call on the government, particularly the business secretary Vince Cable, to investigate pricing and trading policies of retailers to fix this market dysfunction.

This dysfunction is not clear in the UK only, but is of a particular concern here.

I think the UK has started to build a reputation for being quite aggressive around pricing. In France there is a law that says that you cannot systematically sell a products below the production cost”, Crowther said.

Crowther added that the negative influence of pressure of competition in the UK might spread over Europe and push retailers in other country to take on a similar price war.

Over the following two weeks, consumers should more than ever reaffirm their preference for fairtrade bananas, to send a strong signal to retailers. They can also participate to the Fortnight’s events and sign a petition demanding government action.

Further reading:

Fairtade Fortnight calls on UK to pay a sustainable price for bananas

Looking ahead to Fairtrade Fortnight 2014

One in four people happy to spend more on ethical products

The banana dilemma: local or Fairtrade?

The Guide to Sustainable Spending 2013

Economy

Will Self-Driving Cars Be Better for the Environment?

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self-driving cars for green environment
Shutterstock Licensed Photo - By Zapp2Photo | https://www.shutterstock.com/g/zapp2photo

Technologists, engineers, lawmakers, and the general public have been excitedly debating about the merits of self-driving cars for the past several years, as companies like Waymo and Uber race to get the first fully autonomous vehicles on the market. Largely, the concerns have been about safety and ethics; is a self-driving car really capable of eliminating the human errors responsible for the majority of vehicular accidents? And if so, who’s responsible for programming life-or-death decisions, and who’s held liable in the event of an accident?

But while these questions continue being debated, protecting people on an individual level, it’s worth posing a different question: how will self-driving cars impact the environment?

The Big Picture

The Department of Energy attempted to answer this question in clear terms, using scientific research and existing data sets to project the short-term and long-term environmental impact that self-driving vehicles could have. Its findings? The emergence of self-driving vehicles could essentially go either way; it could reduce energy consumption in transportation by as much as 90 percent, or increase it by more than 200 percent.

That’s a margin of error so wide it might as well be a total guess, but there are too many unknown variables to form a solid conclusion. There are many ways autonomous vehicles could influence our energy consumption and environmental impact, and they could go well or poorly, depending on how they’re adopted.

Driver Reduction?

One of the big selling points of autonomous vehicles is their capacity to reduce the total number of vehicles—and human drivers—on the road. If you’re able to carpool to work in a self-driving vehicle, or rely on autonomous public transportation, you’ll spend far less time, money, and energy on your own car. The convenience and efficiency of autonomous vehicles would therefore reduce the total miles driven, and significantly reduce carbon emissions.

There’s a flip side to this argument, however. If autonomous vehicles are far more convenient and less expensive than previous means of travel, it could be an incentive for people to travel more frequently, or drive to more destinations they’d otherwise avoid. In this case, the total miles driven could actually increase with the rise of self-driving cars.

As an added consideration, the increase or decrease in drivers on the road could result in more or fewer vehicle collisions, respectively—especially in the early days of autonomous vehicle adoption, when so many human drivers are still on the road. Car accident injury cases, therefore, would become far more complicated, and the roads could be temporarily less safe.

Deadheading

Deadheading is a term used in trucking and ridesharing to refer to miles driven with an empty load. Assume for a moment that there’s a fleet of self-driving vehicles available to pick people up and carry them to their destinations. It’s a convenient service, but by necessity, these vehicles will spend at least some of their time driving without passengers, whether it’s spent waiting to pick someone up or en route to their location. The increase in miles from deadheading could nullify the potential benefits of people driving fewer total miles, or add to the damage done by their increased mileage.

Make and Model of Car

Much will also depend on the types of cars equipped to be self-driving. For example, Waymo recently launched a wave of self-driving hybrid minivans, capable of getting far better mileage than a gas-only vehicle. If the majority of self-driving cars are electric or hybrids, the environmental impact will be much lower than if they’re converted from existing vehicles. Good emissions ratings are also important here.

On the other hand, the increased demand for autonomous vehicles could put more pressure on factory production, and make older cars obsolete. In that case, the gas mileage savings could be counteracted by the increased environmental impact of factory production.

The Bottom Line

Right now, there are too many unanswered questions to make a confident determination whether self-driving vehicles will help or harm the environment. Will we start driving more, or less? How will they handle dead time? What kind of models are going to be on the road?

Engineers and the general public are in complete control of how this develops in the near future. Hopefully, we’ll be able to see all the safety benefits of having autonomous vehicles on the road, but without any of the extra environmental impact to deal with.

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Economy

New Zealand to Switch to Fully Renewable Energy by 2035

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renewable energy policy
Shutterstock Licensed Photo - By Eviart / https://www.shutterstock.com/g/adrian825

New Zealand’s prime minister-elect Jacinda Ardern is already taking steps towards reducing the country’s carbon footprint. She signed a coalition deal with NZ First in October, aiming to generate 100% of the country’s energy from renewable sources by 2035.

New Zealand is already one of the greenest countries in the world, sourcing over 80% of its energy for its 4.7 million people from renewable resources like hydroelectric, geothermal and wind. The majority of its electricity comes from hydro-power, which generated 60% of the country’s energy in 2016. Last winter, renewable generation peaked at 93%.

Now, Ardern is taking on the challenge of eliminating New Zealand’s remaining use of fossil fuels. One of the biggest obstacles will be filling in the gap left by hydropower sources during dry conditions. When lake levels drop, the country relies on gas and coal to provide energy. Eliminating fossil fuels will require finding an alternative source to avoid spikes in energy costs during droughts.

Business NZ’s executive director John Carnegie told Bloomberg he believes Ardern needs to balance her goals with affordability, stating, “It’s completely appropriate to have a focus on reducing carbon emissions, but there needs to be an open and transparent public conversation about the policies and how they are delivered.”

The coalition deal outlined a few steps towards achieving this, including investing more in solar, which currently only provides 0.1% of the country’s energy. Ardern’s plans also include switching the electricity grid to renewable energy, investing more funds into rail transport, and switching all government vehicles to green fuel within a decade.

Zero net emissions by 2050

Beyond powering the country’s electricity grid with 100% green energy, Ardern also wants to reach zero net emissions by 2050. This ambitious goal is very much in line with her focus on climate change throughout the course of her campaign. Environmental issues were one of her top priorities from the start, which increased her appeal with young voters and helped her become one of the youngest world leaders at only 37.

Reaching zero net emissions would require overcoming challenging issues like eliminating fossil fuels in vehicles. Ardern hasn’t outlined a plan for reaching this goal, but has suggested creating an independent commission to aid in the transition to a lower carbon economy.

She also set a goal of doubling the number of trees the country plants per year to 100 million, a goal she says is “absolutely achievable” using land that is marginal for farming animals.

Greenpeace New Zealand climate and energy campaigner Amanda Larsson believes that phasing out fossil fuels should be a priority for the new prime minister. She says that in order to reach zero net emissions, Ardern “must prioritize closing down coal, putting a moratorium on new fossil fuel plants, building more wind infrastructure, and opening the playing field for household and community solar.”

A worldwide shift to renewable energy

Addressing climate change is becoming more of a priority around the world and many governments are assessing how they can reduce their reliance on fossil fuels and switch to environmentally-friendly energy sources. Sustainable energy is becoming an increasingly profitable industry, giving companies more of an incentive to invest.

Ardern isn’t alone in her climate concerns, as other prominent world leaders like Justin Trudeau and Emmanuel Macron have made renewable energy a focus of their campaigns. She isn’t the first to set ambitious goals, either. Sweden and Norway share New Zealand’s goal of net zero emissions by 2045 and 2030, respectively.

Scotland already sources more than half of its electricity from renewable sources and aims to fully transition by 2020, while France announced plans in September to stop fossil fuel production by 2040. This would make it the first country to do so, and the first to end the sale of gasoline and diesel vehicles.

Many parts of the world still rely heavily on coal, but if these countries are successful in phasing out fossil fuels and transitioning to renewable resources, it could serve as a turning point. As other world leaders see that switching to sustainable energy is possible – and profitable – it could be the start of a worldwide shift towards environmentally-friendly energy.

Sources: https://www.bloomberg.com/news/articles/2017-11-06/green-dream-risks-energy-security-as-kiwis-aim-for-zero-carbon

https://www.reuters.com/article/us-france-hydrocarbons/france-plans-to-end-oil-and-gas-production-by-2040-idUSKCN1BH1AQ

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