THE CHALLENGE OF AGRICULTURAL EXTENSION IN IMPLEMENTING A NEW PRODUCTION AND MARKETING MODEL FOR BANANA THE CASE OF FAIRTR...
THE CHALLENGE OF AGRICULTURAL EXTENSION IN IMPLEMENTING A NEW PRODUCTION AND MARKETING MODEL FOR BANANA The Case of Fairtr...
 
Introduction <ul><li>Traditionally, Windward Island banana was exported under preferential terms to the European Union (EU...
Introduction <ul><li>The Fairtrade regime has provided an alternative for banana in the Windward Islands, devoid of prefer...
<ul><li>Implementation of the Fairtrade protocol  </li></ul><ul><ul><li>Tested the innovativeness of extension services  <...
The General Objective  <ul><li>To determine whether  Fairtrade  provides a viable option for banana exports  </li></ul><ul...
SPECIFIC OBJECTIVES <ul><li>Determine the general economic impact of the introduction of the Fairtrade protocol </li></ul>...
METHODOLOGY <ul><li>A structured questionnaire was used for collection of the primary data from agricultural extension age...
OVERVIEW OF THE BANANA INDUSTRY IN THE WINDWARD ISLANDS <ul><li>Banana production played a multifunctional role in the Win...
OVERVIEW OF THE BANANA INDUSTRY IN THE WINDWARD ISLANDS <ul><li>Banana production played a multifunctional role in the Win...
OVERVIEW OF THE BANANA INDUSTRY IN THE WINDWARD ISLANDS THE BANANA WAR (Impact of WTO) 1993 2002 Export Volume 238,000 T 9...
Profile of  “Windward Island Banana” <ul><li>Steep Hillsides  </li></ul><ul><li>Small-Scale Operations  </li></ul>
Profile of the Competition Latin America “Dollar Bananas” <ul><li>Flat Lands/Large Scale Operations </li></ul><ul><li>Larg...
Profile of  “Windward Island Banana” Manual Harvesting Small-Packing   Facilities
Profile of the Competition Latin America “Dollar Bananas” <ul><li>Mechanized Harvesting </li></ul><ul><li>Large-Scale Pack...
RESULTS OF THE STUDY <ul><li>Conversion of existing traditional production systems into Fairtrade compliant systems  </li>...
<ul><li>1. General economic impact of the introduction of the Fairtrade protocol on banana exports in the Windward Islands...
 
The Case of Dominica <ul><li>In 1992, the banana industry in Dominica accounted for  </li></ul><ul><ul><li>69% of all expo...
The Case of Dominica <ul><li>The number of banana farmers declined from 11,000 in the 1980s to just 700 in 2003  </li></ul...
Banana exports  (The Case of Dominica)  
Trend in Dominica's Banana Exports:  (1990 – 2008)
Trend in Dominica's Banana Exports:  (1 990 – 1999)
Trend in Dominica Banana Exports:  (2000 – 2008)
Trend Lines <ul><li>1990 and 2008  y  =   -3057.7x  + 61577 </li></ul><ul><li>1990 and 1999  y =  -3712.4x  + 65223 </li><...
2 . The experiences and challenges of the agricultural extension services and other stakeholders in implementing the Fairt...
Experiences and Challenges in Implementing the Fairtrade Protocol General Experience : The new banana regime rendered Wind...
Experiences and Challenges in Implementing the Fairtrade Protocol Fairtrade Compliance Agricultural Extension Agents focus...
Extension Agents Evaluation of Thematic Areas  <ul><li>  </li></ul><ul><li>General Experience:   </li></ul><ul><li>Formal ...
(ii) Social Requirements <ul><li>General Experience:   </li></ul><ul><li>No serious cases of discriminatory practices agai...
(iii) Occupational Health and Safety <ul><li>General Experience:   </li></ul><ul><li>Global Gap Standards for agricultural...
(iv) Environmental Requirements <ul><li>General Experience:   </li></ul><ul><li>Traditional production practices included ...
  (v) Trader Requirements <ul><li>General Experience:   </li></ul><ul><li>A well established trading system facilitated pr...
<ul><li>3 . The Agricultural Extension agent’s assessment of Fairtrade and their overall impressions of Fairtrades contrib...
<ul><li>Overall, most agents highlighted  </li></ul><ul><li>Fairtrade has allowed the banana industry to survive by provid...
<ul><li>The cost of implementing the Fairtrade protocol is high </li></ul><ul><li>Appropriate analysis is required to asce...
Discussion and Conclusion <ul><li>The results of this investigation present a few salient points for consideration: </li><...
These concerns raise the following issues/questions <ul><li>Did the Fairtrade Protocol arrive “a little too late” </li></u...
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The challenge of agricultural extension in implementing a new production and marketing model for banana: the case of Fairtrade banana in the Windward Islands of Dominica and St Vincent.

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  • For the purposes of the study, the banana industries of in the Windward Islands were examined in general. However, many specific references were made of the Island of Dominica who’s case can be considered as typical for the other Windward islands.
  • Although attempts were made earlier to address the issues through the implementation of Global Gap, this did not require farmers to do away with certain agrochemicals in their farming operations which was a major requirements under Fairtrade.
  • The challenge of agricultural extension in implementing a new production and marketing model for banana: the case of Fairtrade banana in the Windward Islands of Dominica and St Vincent.

    1. 1. THE CHALLENGE OF AGRICULTURAL EXTENSION IN IMPLEMENTING A NEW PRODUCTION AND MARKETING MODEL FOR BANANA THE CASE OF FAIRTRADE BANANA IN THE WINDWARD ISLANDS Malcolm Wallace Agribusiness Society (ABS), Department of Agricultural Economics and Extension, University of the West Indies
    2. 2. THE CHALLENGE OF AGRICULTURAL EXTENSION IN IMPLEMENTING A NEW PRODUCTION AND MARKETING MODEL FOR BANANA The Case of Fairtrade Banana in the Windward Islands Malcolm Wallace, Govind Seepersad The Agribusiness Society (ABS) and The Department of Agricultural Economics and Extension The University of the West Indies, St Augustine, Trinidad and Tobago
    3. 4. Introduction <ul><li>Traditionally, Windward Island banana was exported under preferential terms to the European Union (EU), primarily the United Kingdom (UK). </li></ul><ul><li>Changes to the EU banana regime; The WTO agreement of 1995 and subsequently the elimination of the EU – ACP preferential marketing arrangement in 1998 resulted in the loss of guaranteed access to the UK market </li></ul><ul><li>This triggered a systematic decline in the banana industry and as a consequence; </li></ul><ul><ul><ul><li>Reduced revenues for all stakeholders, </li></ul></ul></ul><ul><ul><ul><li>Increased unemployment </li></ul></ul></ul><ul><ul><ul><li>Related social problems in all of the Windward Islands. </li></ul></ul></ul>
    4. 5. Introduction <ul><li>The Fairtrade regime has provided an alternative for banana in the Windward Islands, devoid of preferential market access to the EU. </li></ul><ul><li>However, it requires strict adherence to Fairtrade production and marketing principles. </li></ul><ul><li>Extension services were challenged to convey this message in a less than desirable environment. </li></ul><ul><li>Farmers were demoralized </li></ul><ul><li>Industry in a continuing downward spiral. </li></ul>
    5. 6. <ul><li>Implementation of the Fairtrade protocol </li></ul><ul><ul><li>Tested the innovativeness of extension services </li></ul></ul><ul><ul><li>Highlighted the challenges experienced from moving farmers to Fairtrade compliance status </li></ul></ul>Introduction
    6. 7. The General Objective <ul><li>To determine whether Fairtrade provides a viable option for banana exports </li></ul><ul><li>…… in the Windward Islands, more specifically the Commonwealth of Dominica. </li></ul>
    7. 8. SPECIFIC OBJECTIVES <ul><li>Determine the general economic impact of the introduction of the Fairtrade protocol </li></ul><ul><li>Establish the experiences and challenges of the agricultural extension services and other stakeholders </li></ul><ul><li>Ascertain extension agents assessment of Fairtrade and their overall impressions of the Fairtrades contribution to the banana industry in the Windward Islands . </li></ul>
    8. 9. METHODOLOGY <ul><li>A structured questionnaire was used for collection of the primary data from agricultural extension agents and other relevant stakeholders </li></ul><ul><li>Archival and internet research for secondary data </li></ul>
    9. 10. OVERVIEW OF THE BANANA INDUSTRY IN THE WINDWARD ISLANDS <ul><li>Banana production played a multifunctional role in the Windward Islands ! </li></ul><ul><li>Contribution to GDP and Employment </li></ul><ul><li>Maintaining sustainable Rural Livelihoods </li></ul><ul><ul><ul><li>Rural Stability, </li></ul></ul></ul><ul><ul><ul><li>Vibrant Rural Economies </li></ul></ul></ul><ul><li>Preserving the integrity of the natural environment in farming areas </li></ul><ul><li>Providing funds for investment within all sectors of the economy </li></ul><ul><ul><li>Infrastructure (Roads Bridges Air & Sea ports/Other) </li></ul></ul><ul><ul><li>Education </li></ul></ul><ul><ul><li>Health </li></ul></ul>
    10. 11. OVERVIEW OF THE BANANA INDUSTRY IN THE WINDWARD ISLANDS <ul><li>Banana production played a multifunctional role in the Windward Islands !! </li></ul><ul><li>Functioned as part of a larger food production system. </li></ul><ul><ul><li>Financial support to mixed farming systems (inputs for short term crops, permanent crops and livestock) </li></ul></ul><ul><li>Facilitation of expansion in trade </li></ul>
    11. 12. OVERVIEW OF THE BANANA INDUSTRY IN THE WINDWARD ISLANDS THE BANANA WAR (Impact of WTO) 1993 2002 Export Volume 238,000 T 99,000 T Export Value US$147million US$45 million # of Farmers 24,000 7,000 UK Market share 66% 19%
    12. 13. Profile of “Windward Island Banana” <ul><li>Steep Hillsides </li></ul><ul><li>Small-Scale Operations </li></ul>
    13. 14. Profile of the Competition Latin America “Dollar Bananas” <ul><li>Flat Lands/Large Scale Operations </li></ul><ul><li>Large-Scale Irrigation </li></ul>
    14. 15. Profile of “Windward Island Banana” Manual Harvesting Small-Packing Facilities
    15. 16. Profile of the Competition Latin America “Dollar Bananas” <ul><li>Mechanized Harvesting </li></ul><ul><li>Large-Scale Packing Facilities </li></ul>
    16. 17. RESULTS OF THE STUDY <ul><li>Conversion of existing traditional production systems into Fairtrade compliant systems </li></ul><ul><li>Shipments of Fairtrade banana started in the early 2000’s. </li></ul><ul><li>Fairtrade maintained a market for Windward Island’s banana in the UK”. </li></ul><ul><li>Export data show that although markets in the UK were maintained, a downward trend in exports continued. </li></ul>
    17. 18. <ul><li>1. General economic impact of the introduction of the Fairtrade protocol on banana exports in the Windward Islands. </li></ul>
    18. 20. The Case of Dominica <ul><li>In 1992, the banana industry in Dominica accounted for </li></ul><ul><ul><li>69% of all exports and </li></ul></ul><ul><ul><li>employed 60% of agricultural workers . </li></ul></ul><ul><li>Between 1992 and 2003, </li></ul><ul><ul><li>Exports fell from 58,000 to 10,000 T/yr </li></ul></ul><ul><ul><li>Revenues from US$32 mn to US$5.3 mn. </li></ul></ul>
    19. 21. The Case of Dominica <ul><li>The number of banana farmers declined from 11,000 in the 1980s to just 700 in 2003 </li></ul><ul><li>Significant rise in unemployment rates in rural communities. </li></ul><ul><li>Some 12,000 people are thought to have emigrated in the 1990s </li></ul><ul><li>  </li></ul><ul><li>A similar demise was evident in islands of St Lucia, St Vincent and the Grenadines and Grenada. </li></ul>
    20. 22. Banana exports (The Case of Dominica)  
    21. 23. Trend in Dominica's Banana Exports: (1990 – 2008)
    22. 24. Trend in Dominica's Banana Exports: (1 990 – 1999)
    23. 25. Trend in Dominica Banana Exports: (2000 – 2008)
    24. 26. Trend Lines <ul><li>1990 and 2008 y = -3057.7x + 61577 </li></ul><ul><li>1990 and 1999 y = -3712.4x + 65223 </li></ul><ul><li>2000 and 2008 y = -2086.2x + 26092 </li></ul>
    25. 27. 2 . The experiences and challenges of the agricultural extension services and other stakeholders in implementing the Fairtrade protocol in the Windward Islands.
    26. 28. Experiences and Challenges in Implementing the Fairtrade Protocol General Experience : The new banana regime rendered Windward Island banana uncompetitive against the Latin American banana in the UK market The research found that the Fairtrade concept was embraced as a possible solution to avert the precipitous decline of the banana industry.
    27. 29. Experiences and Challenges in Implementing the Fairtrade Protocol Fairtrade Compliance Agricultural Extension Agents focused on the thematic areas of the Generic Fairtrade Standards checklist inclusive of: <ul><li>Organizational requirements for farmer associations, </li></ul><ul><li>Social requirements, </li></ul><ul><li>Occupational health and safety, </li></ul><ul><li>Environmental Requirements </li></ul><ul><li>Trader requirements </li></ul>
    28. 30. Extension Agents Evaluation of Thematic Areas <ul><li>  </li></ul><ul><li>General Experience: </li></ul><ul><li>Formal Farmer Organizations were absent. (Implemented as part of the Fairtrade protocol). </li></ul><ul><li>  </li></ul><ul><li>Major Challenges: </li></ul><ul><li>Establishing farmers groups proved extremely difficult </li></ul><ul><ul><li>Traditional culture of independence among farmers </li></ul></ul><ul><ul><li>Concerns over the democratic process </li></ul></ul><ul><li>The formation of groups was accelerated because of price incentives and the fact that Fairtrade was the most plausible option given market conditions. </li></ul>( i) Organizational Requirements for Farmers Association
    29. 31. (ii) Social Requirements <ul><li>General Experience: </li></ul><ul><li>No serious cases of discriminatory practices against workers and no use of forced or bonded labour. </li></ul><ul><li>Child labour is practiced (children contribute to activities on the farm by fulfilling various tasks). </li></ul><ul><li>  </li></ul><ul><li>Major Challenges: </li></ul><ul><li>Farmers were willing to adhere to all the other requirements under the Social Requirements component, making implementation of these requirements relatively easy. </li></ul>Extension Agents Evaluation of Thematic Areas
    30. 32. (iii) Occupational Health and Safety <ul><li>General Experience: </li></ul><ul><li>Global Gap Standards for agricultural production was not completed before implementation of the Fairtrade protocol. </li></ul><ul><li>Major Challenges: </li></ul><ul><li>Moderate levels of difficulty in conveying the appropriate practices required for full compliance to occupational health and safety standards. </li></ul><ul><ul><li>Particularly challenging was the mandatory use of protective clothing when handling agrochemicals. </li></ul></ul><ul><ul><li>Construction of on farm sanitary facilities </li></ul></ul><ul><li>Difficulty in breaking traditional habits among farmers and farm workers. </li></ul>Extension Agents Evaluation of Thematic Areas
    31. 33. (iv) Environmental Requirements <ul><li>General Experience: </li></ul><ul><li>Traditional production practices included the use of various agricultural agrochemicals prohibited by FLO. </li></ul><ul><li>Farmers relied heavily on the use of agrochemical (fertilizers/pesticides) with little regard for proper storage, usage and environmental impacts. </li></ul><ul><li>Major Challenges: </li></ul><ul><li>Adherence to environmental requirements presented the most difficulty. </li></ul><ul><li>Farmers wrestled with the prospects of having to reduce productivity to achieve environmental protection. </li></ul><ul><li>Farmers Arable land resources are limited (Average farm size of 2 acres) </li></ul><ul><li>Agro Chemicals reduced labour cost </li></ul>Extension Agents Evaluation of Thematic Areas
    32. 34. (v) Trader Requirements <ul><li>General Experience: </li></ul><ul><li>A well established trading system facilitated proper documentation and traceability of bananas traded </li></ul><ul><li>Major Challenges: ( Farm Level) </li></ul><ul><li>Record keeping at the farm level (Minimal and in some cases non-existent). </li></ul><ul><ul><li>Moderate levels of difficulty with traditional (pen and paper) forms and extreme levels of difficulty in the use of new technologies </li></ul></ul><ul><li>In the case of the latter, two reasons were identified: </li></ul><ul><li>(i) lack of access to the technology, </li></ul><ul><li>(ii) reluctance by farmers to engage in the use of computers. </li></ul><ul><li>(Age factor) </li></ul>Extension Agents Evaluation of Thematic areas
    33. 35. <ul><li>3 . The Agricultural Extension agent’s assessment of Fairtrade and their overall impressions of Fairtrades contribution to the banana industry in the Windward Islands . </li></ul>
    34. 36. <ul><li>Overall, most agents highlighted </li></ul><ul><li>Fairtrade has allowed the banana industry to survive by providing an alternative market (supports economic analysis above) </li></ul><ul><li>However, the industry still experiences: </li></ul><ul><li>Reductions in productivity, </li></ul><ul><li>Few new entrants into the industry </li></ul><ul><li>Limited expansion of existing banana farming enterprises (Except in St Lucia and St Vincent and the Grenadines) </li></ul>Agricultural Extension Agent’s Assessment
    35. 37. <ul><li>The cost of implementing the Fairtrade protocol is high </li></ul><ul><li>Appropriate analysis is required to ascertain whether the premium prices cover all operating cost (Reasonable return on investment or farmers) </li></ul><ul><li>Fairtrade has contributed significantly to rural development through the social premium </li></ul><ul><li>Farmers should be able to benefit directly from the social premiums received under Fairtrade. </li></ul><ul><li>  </li></ul>Agricultural Extension Agent’s Assessment
    36. 38. Discussion and Conclusion <ul><li>The results of this investigation present a few salient points for consideration: </li></ul><ul><li>  </li></ul><ul><li>Continuing downward trend in the banana industry </li></ul><ul><li>Economics of Fairtrade and return on investment for farmers </li></ul><ul><li>Sustainability of the Faitrade production and marketing in the Windward Islands </li></ul>
    37. 39. These concerns raise the following issues/questions <ul><li>Did the Fairtrade Protocol arrive “a little too late” </li></ul><ul><li>Has Fairtrade just prolonged the inevitable death of banana industry? </li></ul><ul><li>Has the demise of the banana industry taken a negative psychological toll on farmers? (Reluctance to continue banana production) </li></ul><ul><li>Are other factors responsible </li></ul><ul><ul><li>Cost of inputs, </li></ul></ul><ul><ul><li>Infrastructure </li></ul></ul><ul><ul><li>Policy regulations </li></ul></ul><ul><li>Have farmers diversified away from banana or agriculture because of other emerging opportunities ? </li></ul>
    38. 40. Thank you!

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