There have been a number of major milestones which have guided the development and market structure of Colombia’s banana export industry between 1995 and 2010. Primary among them is the shift in the concerns of producers. Before President álvaro Uribe came into power in 2002, those concerns were focused on the issue of security. But, now that has been partially overcome in the production areas of Magdalena and Urabá-Antioquia, today’s concerns lie with the revaluation of the Colombian peso and climate problems, particularly in regard to recent longer rainy seasons.
The institutional and market changes in Colombia’s banana industry over the last decade have had an impact on small growers in particular, since they have been more sensitive to the sector’s problems. As the first link in the supply chain, growers bear all the pressure of the brokering and marketing of their fruit. While funding and government-sponsored insurance packages exist, they have not served to mitigate the problems of small growers.
Among the reasons for this are a lack of knowledge about the existence of this support (particularly relating to insurance) and the financial requirements of the commercial banks who lend the money, and who are ultimately the intermediaries of government assistance. Growers’ cooperatives are seen as the only organisational alternative for small producers to survive. However, the lack of cohesion between growers and the pressure of larger companies, which push back the chain, are barriers still to be overcome.
The efforts underway to attempt to mitigate the adverse effects on small producers include the activities of the Association of Banana Growers of Colombia (Augura), which have been particularly significant. Augura has sought to expand its representation in both of the main banana-producing regions (Magdalena and Urabá-Antioquia), and thus gain a greater resonance among the government agencies – and even other countries when they have infringed upon the trade rights of Colombia and its producers. The case of the ‘banana wars’ is an example where Augura was an important player in reaching a consensus and finding solutions to the differences.
In addition Augura has managed to realise the potential of the sector through a joint effort with the research centre Cenibanano which has contributed to productivity improvements and somewhat mitigated the adverse effects on international prices. With regard to efforts specifically targeted towards small producers, the association has two programmes: Banatura (Natural Banana), which seeks to strengthen cleaner production; and a public-private partnership, which, through international cooperation, especially from the government of the Netherlands, has allowed an important group of producers to increase their competitiveness, and generate employment and income opportunities framed by sustainable development. The latter programme was awarded a prize in Colombia called Emprender Paz (Embark on Peace) for its contribution to community development.
The banana export industry in Colombia is becoming increasingly concentrated around just a few large companies, while on the other hand the small growers are not united, which means they remain at the mercy of trade and climate change. Small producers would do well therefore to direct more of their production and marketing towards organic bananas and encourage ‘fair production’ among the sector. Otherwise, they may find themselves forced into redirecting their traditional production activities to other areas.
