The changing role of multinational companies in the global banana trade

Year of publication2014

AuthorFAO

PublisherFAO

AbstractMultinational trading companies, and in particular the three largest banana traders (Chiquita, Dole and del Monte), have historically played a major role in the international banana trade, exerting substantial market power in particular on the purchasing side. These vertically integrated multinational firms engage in production, purchase, transport, and marketing of bananas. They own fleet and ripening facilities, and have their own distribution networks in the importing countries, creating im portant economies of scale. The scope of their operations and their influence over the banana trade have, however, changed over time. The combined market share of the top three companies was at its highest in the 1980’s, when they controlled almost two thirds (65.3%) of global banana exports2, and the share has gradually declined since. In 2013, the market share of the top three companies was slightly over one third (36.6%) and the share of the top five companies was 44.4%, down from 70% in 2002. As a consequence, other companies now account for over half of all exports.

 

ThemeAgricultural Commodities and Development

Product typeBook (stand-alone)

Areas of workGlobal Commodity Markets

CommodityBananas