One in every four bananas eaten in the UK is from Costa Rica and, last year, the country exported a total of 113.5 million 18kg cartons of its main agricultural export, making it the world’s third-largest banana exporter after Ecuador and the Philippines.
The banana-producing regions cover a total of 43,820 hectares of land in the Caribbean part of Costa Rica, namely Pococi, Siquirres, Matina and Limon, and produce an average of 2,593 18kg cartons per hectare a year. The main export market for the Costa Rican banana industry is Europe, and UK consumers are becoming increasingly important to the industry, with the UK importing approximately 9m boxes of Costa Rican bananas in 2007.
The Costa Rican banana industry has a rich history that goes back more than 100 years. And since trading was made more accessible with the introduction of the country’s first railway in 1870, the industry has flourished. The Costa Rican banana industry is now made up of 50 per cent Costa Rican growers, and the remainder consists of foreign commercial companies that grow and export the fruit, such as the Standard Fruit Co, Dole, Chiquita and Fyffes.
Corbana was established in 1971 by the government as the governing body of national banana activity, and is primarily concerned with the welfare of Costa Rican banana producers, as well as developing the industry’s culture and development. Corbana invests more than $1.6m (£815,660) in agricultural research a year, and this has made the country one of the world’s leaders in banana research.
Corbana’s Ernesto Villalobos maintains that the quality of Costa Rican bananas is due to the industry’s dedication to research initiatives and technical assistance, favourable climate conditions, good soil preparation and the protection of fruit during its development and the harvesting process.
However, the changing climate is making waves for the Costa Rican banana industry, and the country has just experienced a particularly dry season - its third summer of that kind in a row. Going from one extreme to another, rainfall has also been heavy in other parts of the season, and there has been flooding in the low areas of the country, with rainfall reaching levels of 6,000mm a year.
This year’s season, as well as the previous similar seasons, are having an effect on the industry. To compensate for the amount of money the plantations are investing into combating the effects of the changing weather, they are trying to increase their yield. However, in a catch-22 situation, the weather is preventing them from increasing production of high-quality bananas.
Las Juntas banana plantation, in Limon, is a relatively new business, and has been sending its 2,300-box-a-year production exclusively to the UK from its 100ha site for the last two years. It is owned by Victoria Leon, who owns a total of 600ha of banana production throughout Costa Rica, and is the country’s only female plantation owner. Daniel Hurtado, administrator at the plantation, says it has been a good season and that the plantation’s yield level has been maintained, but admits that this summer was a difficult time. “We aimed to increase our production, but last summer was dry and did not allow the plantation to excel as it should have,” he says. “Banana plants need water and humidity to grow as fast as they do, and maintain our year-round harvest. But if the plants do not have enough water, it means the growth of the plant and the bunch is slow.”
Despite this, Hurtado is optimistic about the rest of the year and believes that the banana industry is a very rewarding business. “The speed the crop grows at is what characterises the business, and it is a good business to be part of,” he says. “We are aiming to recover from the beginning of the year’s low yields in a couple of months’ time. Bananas grow so fast that a dry month will probably only affect the crop for one to two months, depending on whether it rains or not. Nevertheless, it means that we will only match last year’s volumes, and not exceed them as we hoped.”
La Estrella banana plantation, also in Limon, has been producing bananas for 29 years, and expects to produce an average of 2,700 18kg boxes per ha this year - 200 boxes per ha up on last year. But, according to the 200ha plantation’s administrator, Antonio Cárdenos Villalta, this may not happen. “Our aim is to increase the plantation’s yield, but you never know what is going to happen with these weather conditions,” he says. “The start of the year has been too dry, and this has brought the yield down.”
At La Estrella, the banana plants take nine months to grow from seed, and are grown in stages to ensure a year-round harvest. Around 11 to 13 weeks before the bunch is ready, blue protective bags are tired around the plant, as well as a spiral of protective cardboard inbetween the banana bunch’s layers to prevent the bananas from marking one another. The plastic bags create a further microclimate for the banana bunches to fully develop within, and also protect the fruit from birds and other animals. The bunch is then cut down when the bananas have reached their required size, and is transferred via a pulley system, dragged manually, to the washing facility on site. The bananas are then sorted and packed, and will then travel in refrigerated lorries and ships until they reach their European destination, where they will be ripened in ripening chambers.
Jorge A Sauma Aguilar, chief executive officer of Corbana, believes that the whole banana industry in Costa Rica will suffer a five per cent production reduction this year. “With bananas, the weather affects everything,” he explains. “As well as being dry, this summer has been cold in parts of the country, and this makes the plant try to protect itself by drawing its leaves in. This ultimately means that volume goes down, as the crop grows slower, and subsequently slows down the whole crop in its various stages of growth. This will affect the quality of the bananas, and will produce thinner, smaller fruit.
“At the moment, the industry’s production is about 12 per cent less than it was last year due to climatic problems. The industry may recover and the weather is getting better; certainly, the aim is to reduce that gap as much as possible. But I think that we will catch up a little, and will probably end the year with a five per cent decrease on last year, overall.”
Corbana’s Sergio Laprade Coto has, through research, found that many pests and diseases have become more of a problem to the banana plantations since Costa Rica has been experiencing drought during its summer months, from February to April. “Heat and humidity are both needed for bananas to grow, but this also creates a breeding ground for pests, and there are many damaging entities that we have to fight,” he says. “Black Sigatoka is a fungus that thrives in humid conditions and attacks the leaves of the plant and, for it to develop a strong bunch of bananas, the plant needs to have protection from its leaves. The banana, instead of being strong and large, will be short and skinny. Obviously, consumers do not want this kind of fruit, and it cannot be exported, losing the grower money.
“Another important disease is nematodes, which are microscopic worms that attack the roots of banana plants and prevent enough nutrients getting to them. These have a similar effect to the fungus,” says Laprade Coto.
Most Costa Rican banana growers have to use agro-chemicals to control these new and developing pests and diseases. This process is not ideal for two reasons; it is expensive to control, due to the price of the chemicals and the high-protection measures the plantation has to take regarding the workers’ health, and the effect the general industry believes the chemicals have on the environment and land.
Hurtado says the main threat to the plantation he works on is the expense caused by controlling the increasing amounts of pests on the crops, and the plantation is crying out for a natural and more economical solution. “It is very expensive to control nematodes and get the chemicals we need to sustain production,” he explains. “We believe that the amount of agro-chemicals used in production should be lowered, and we use sustainable herbicides where possible, as well as looking after the plants naturally by hand. But this is also expensive because of the extra labour costs.”
Protecting the environment around them is an important part of what the banana growers do. Great care is taken to avoid the rivers near to plantations in order to prevent poisoning. Corbana also supports groups that replant species of trees near riverbeds in order to avoid protecting the environment, like Chiquita’s Nature and Community Centre in Sarapiqui. This organisation runs a visitors’ centre, where tourists and local school groups can look around botanical gardens and also buy the banana-producing community’s arts and crafts.
Corbana believes that rainforest areas in Costa Rica, which currently stand at 4,490ha, will increase in years to come because of the strong beliefs of people within the sector.
The body has acted on its growers’ concerns and has been looking into combating the pests and diseases brought on by climate change at the Corbana Research Centre in Limon. At the research centre, scientists ask growers to send in samples of their soil and plants, and then advise the growers, through individual reports, on what they can do next. The reports are free and advise on how to improve plants’ root systems.
The research centre has been assisting growers for 27 years and employs 19 people, who are all committed to combating the pests and diseases that are holding the Costa Rican banana industry back. “We have had some success with killing bugs that cause damage to the banana flowers with a certain type of fungus applied directly to the fields,” says Laprade Coto. “We have also introduced wasps to plantations that have problems with white fly, which attacks the bunches directly. Wasps lay their eggs inside white fly eggs, and when it is time for the wasp to hatch, the wasp eats the white fly, meaning the crop is protected.”
With this biodiversity, Corbana plans to decrease the use of pesticides within Costa Rican banana plantations by 50 per cent in the next 10 years. “In other countries, the level of pesticides used can be very high, as they are not as worried about the environment and workers as we are in Costa Rica,” says Villalobos. “If you cannot guarantee that your worker has the best wellbeing, what is going to happen to your plantation?”
The pesticide level used in Costa Rican plantations is analysed by an independent body, as part of a worldwide venture between various universities and governments from Brazil, the Netherlands, France and Belgium. The biggest setback on the Costa Rican front is the increasing incidence of Black Sigatoka.
There are more than 300 different varieties of bananas in Costa Rica, but consumers only recognise and want one, Cavendish. But is it the supermarkets that are influencing this decision? Apparently not, says Laprade Coto. Corbana has held some comprehensive research into what consumers want in the past, including holding taste panels at supermarkets in both Central America and Europe, and it seems that it is in fact consumers that ultimately want the same banana that they have been used to.
But the variety is starting to show some major flaws now that the weather has become changeable, especially where the parasitic nematode is concerned, and due to consumers putting pressure on the Costa Rican banana industry to decrease the amount of pesticides used in production, Corbana is looking into biologically creating the perfect banana by cross-breeding the Cavendish variety with others that have a greater resistance to nematodes.
“Right now, Corbana is working on breaking it down to find out what the DNA is for a banana,” explains Laprade Coto. “When we do that we will know the best way to go, and will be able to grow plants resilient to Black Sigatoka. We want to produce bananas in harmony with the environment, without failing the banana industry.”
Corbana has been collecting different varieties of bananas for more than 10 years, in the hope of finding the perfect banana DNA. The organisation is looking for banana genes resilient to pests and diseases, while also remaining appealing to the consumer.
Corbana is also working hard on improving the Costa Rican banana industry’s image in Europe and the UK, and is making it known that social responsibility has always been at the top of the industry’s agenda. “The problem, especially in the UK, is that people generally have a bad image of our industry,” says Sauma Aguilar. “People tend to think that our plantations do not pay the workers very well, and that they work more than eight hours a day. It is not true. Costa Rica has very strong standards in this area compared to other countries.
“The minimum wage on a plantation is $16 a day, and you realise how good this is compared to Africa’s $1.5 a day. Buyers ask where the bananas they are purchasing are grown and whether the growers have an acceptable level of health, education and lifestyle. But they do not realise that the industry’s main concern is the working conditions of the workers,” he maintains. “We are trying to get that message over to the rest of the world, but I think we are going to need a larger budget to do it successfully.”
Social responsibility is something that La Estrella takes very seriously. The family-run plantation makes it its mission to provide good working and living conditions for its employees, while looking after the environment for future generations to come. The plantation is ISO1401 certified, is GlobalGAP accredited and complies with Chiquita’s Rainforest A standard. The plantation employs 120 workers, who are protected under all social standards and rights in Costa Rica, and 40 per cent of those workers live within the plantation in rent-free accommodation for both families and single workers. These homes also include free services, such as electricity and water, and the plantation also includes a school for the children of the workers, as well as sport and leisure facilities. For the workers who are not in housing, transportation to the plantation from the town they live in is provided free of charge.
The plantation has found that by supplying this kind of service, workers stay in their jobs longer. Cárdenos Villalta says the provisions began about 20 years ago, from the family who own the plantation. “It is a personal way of life for the owner of the farm,” he says. “He says, ‘What is good for the worker is good for the plantation and good for the country’. There is no workers’ union as such, but there is a workers’ committee, which goes to the owners and negotiates their needs.”
But as issues with the weather, increasing prices and the cost of corporate responsibility weigh down the Costa Rican banana industry, profitability is becoming an issue for the independent plantations.
“Last year we ran at a loss, and we have not made a profit for years,” admits La Estrella’s vice-president José Herrera Astús. “The weather conditions have been extreme for the last five years. We believe that wealth happens in cycles, in the way that if you invest money and effort into something then it will come back to you. We have had a patch of very dry weather, so we have invested in an irrigation system.
“The banana market is very competitive and, as Ecuador is a free market with no imposed minimum price from the government, Ecuadorian growers can sell their bananas a lot cheaper than us,” he adds.
As a result of this situation, some independent Costa Rican banana growers are attempting to sell their bananas directly to markets such as the UK. “It is risky to sell directly to the UK,” says Herrera Astús, who maintains that the majority of his family-run plantation’s bananas are sold to Chiquita for the European markets. “Some producers are taking the risk, as there is more profit in it if you can make the right business connections.”
Las Juntas banana plantation is in a similar situation and seems to be only just making ends meet financially. “We work as a team with Corbana to maintain quality standards, because we are concerned with the status of the plantation, but it does take money,” says Hurtado. “The most important thing is being able to pay back the loans we had to take out to buy and develop the farm.”
Sauma Aguilar maintains that trading with the EU is problematic, although the country continues to do a good trade in the UK. “The industry, in particular smaller growers, have trouble trading with the EU and find it very competitive,” he says. “The Canary Islands receive a subsidy when they trade within the EU, and it is hard to compete when we have to charge the full price.”
Corbana is helping small independent growers to trade directly with countries, so they can make a larger profit than going through a middleman. “Approximately 10 per cent of the independent banana growers in Costa Rica are managing to sell directly,” says Sauma Aguilar. “We have been granting loans and supporting them where we can. It is very expensive for small companies to ship over a small amount of bananas, and it is better to do it in bulk.”
Sauma Aguilar maintains that Corbana’s main aim now is to help the industry increase its production, and therefore generate more money for the growers. “We are trying to be more efficient by reducing costs and increasing production,” he says. “Biodiversity has a lot to do with this, and it is the key to the Costa Rican banana industry’s future, and independent growers’ survival."
DOLE TO OFSET CARBON USE
DOLE Food Company has announced that its operating division in Costa Rica, Standard Fruit Company de Costa Rica SA, will purchase carbon offsets from the Costa Rican government’s programme in amounts equal to the carbon dioxide emissions generated by the inland transport of Dole-produced bananas and pineapples.
This announcement marks the first time that a private company has committed to offset its emissions from the transport of its finished products within Costa Rica. The move is part of a broader agreement by Dole, signed last August with the government of Costa Rica’s ministry of the environment and energy and the National Strategy for Climate Change, to produce a carbon-neutral supply chain for bananas and pineapples. Costa Rica is seeking to become carbon neutral by 2021.
David A DeLorenzo, president and chief executive officer of Dole Food Company, said: “Dole is determined to take the lead in environment-friendly production and distribution methods. We are committed to helping the government of Costa Rica achieve its sustainability ambitions.”
Dr Roberto Dobles, minister of the environment and energy of Costa Rica, stated: “This agreement that Dole has signed is an important first step within a global vision. It is the first step towards a great contribution by Dole for the consolidation of the country’s strategy to be climate neutral for our bicentennial.”
Under the accord, the National Forestry Financing Fund will offer Dole carbon credits from government-certified forestry projects, that will annually sequester an equivalent amount of carbon from the atmosphere as that emitted by fossil fuel use in road and rail transportation. The Dole products will be carbon neutral with regards to transportation from company-owned packing plants to the ports of export in Costa Rica.
The carbon credit approach is one of many strategies that Dole is employing to neutralise the carbon footprint, resulting from the growing, harvesting, packing and distribution of the company’s bananas and pineapples in Costa Rica. Reforestation programmes are underway, and thousands of trees are being planted on Dole plantations in Costa Rica, including local farms and neighbouring communities. l
