Assessing social and environmental externalities of banana production
How we helped Fairtrade International to find the True Price of a banana by measuring all the external social and environmental impacts of production.
Fairtrade international is an NGO, multi-stakeholder association including three producer networks and 25 local Fairtrade organizations. Insight and knowledge into external social and environmental costs is vital. Acting as authorities in their sectors they can develop priority areas for impact improvement. As brand influencers, they communicate the value of externalities to stakeholders and at retail and consumer level.
True Price partnered with Trucost and Fairtrade International to create a global study examining the externalities of banana production. In the study, we examined banana production in four countries: Colombia, Dominican Republic, Ecuador and Peru. The scope of the study was very extensive and we reported on social impacts such as: discrimination, insufficient income and harassment, and environmental impacts such as: water depletion, land use and air pollutants. There were quantitively measured and monetized to understand the True Price of Fairtrade bananas compared to non-Fairtrade bananas.
This infographic presents the lower social and environmental costs associated with Fairtrade Production compared to the sector benchmark.
By understanding the most material impacts, Fairtrade International can shape strategies and focus support to producer organizations. Additionally, this study will act as a communication tool for Fairtrade International as they are able to expose the gap of impact between Fairtrade and non-Fairtrade products.
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