Often a Loss Leader, Bananas Show Potential as Impact Driver for Retailers, GlobeScan Finds

Low prices on bananas are often used to attract customers, but new research from GlobeScan & Fairtrade America shows consumers willing to pay more for fair trade bananas.

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Fairtrade America

Sep 21, 2017, 10:17 ET

WASHINGTON, Sept. 21, 2017 /PRNewswire-USNewswire/ -- New research from GlobeScan reveals that consumers are ready to reward retailers that stock fair trade bananas. Of consumers surveyed, 64 percent indicated that they would purchase fair trade certified bananas at a differential of 10 cents per pound. Download the research and read full release here.

New research shows 64 percent of consumers indicated that they would pay more for fair trade certified bananas - a fact that could make a huge impact for farmers and workers, and make for more sustainable supply chains.

"When the price is right, consumers state a strong willingness to pay a premium for fair trade bananas over those without a label. It shows that people will support retailers that take the extra step to invest in their supply chains," said James Morris, US Director, GlobeScan.

Generally, the lower the price increase, the more likely consumers were to purchase fair trade bananas. For example, the percentage of consumers likely to purchase increased to 77 percent with a 5 cent increase.

"This is a win-win. Retailers and brands benefit from having a Fairtrade choice in the center of the produce section," said Derek Mulhern, Business Development Manager at Fairtrade America. "Providing customers with certified produce tells consumers that a business is serious about sharing the story of where their food comes from."

Farmers and workers in the banana sector often face low incomes, and difficult and hazardous working conditions. Fairtrade certification has resulted in many positive impacts, including:

91 percent of workers in Colombia have seen household assets increase by an average of 64 percent since their plantation became Fairtrade certified.
Three quarters of farmer cooperative members in Ecuador said their income and wellbeing had improved in the last three years.
Small-scale farmers in Colombia reported an average 34 percent increase in income due to their affiliation with Fairtrade certified organizations.

Fairtrade currently works with over 12,000 small-scale farmers and 10,000 workers in 12 countries. Producer organizations in the Dominican Republic produce the highest volume of bananas, while those in Colombia sell the highest percentage on Fairtrade terms (78 percent).

The FAIRTRADE label, licensed by Fairtrade America, is the world's most recognized and trusted ethical certification. By complying with the social, economic and environmental criteria in the Fairtrade Standards, farmers, traders and brands can improve livelihoods and the sustainability of supply chains.

Contact Kyle Freund, Fairtrade America, [email protected], 202-391-0525.

SOURCE Fairtrade America