Who reaps the fruit? - critical issues in the fresh fruit & vegetable chain

This study of the Fresh Fruit and Vegetables (FFV) sector investigates the influence of trade and distribution on production and production conditions of fresh fruit and vegetables. It focuses on the corporate structures and corporate relations throughout the sector and in the production, supply and value chains. The study identifies ‘critical issues’ in the sector from the perspective of poverty eradication and sustainable development. It concludes with arguments for civil society organisations to feed the debate on trade and investment and corporate accountability.

Some of the critical issues highlighted in the report include:

• while developing countries capture a third of world FFV exports in value, just a handful of developing countries, mainly from Latin- America, account for two thirds of all developing country exports
• some countries like Kenya have food security problems related to increasing export production
• child labour is widespread in the sector, bonded labour is not uncommon, the right of freedom of association is often restricted, wages are too low and there are problems concerning the health and safety of workers
• FFV production sometimes can be associated with loss of biodiversity, pollution via chemicals (pesticides, fertilizers) and high water consumption
• it is expensive and challenging for new entrants to penetrate the current FFV export market which favours large-scale production

• more international co-operation among international institutions and countries is needed to avoid an oversupply in FFV
• no liberalisation should be encouraged in sub-sectors whose markets are dominated by a few companies
• economic aspects such as wages, transfer pricing, payment of taxes, corruption, competition and contributions to local economies, should be integrated into the CSR policies of governments and agri-businesses in the FFV chain
• the principles of non-discrimination, such as the National Treatment and Most Favoured Nation principles of the WTO should not undermine CSR initiatives or regulation that favour companies with good supply chain responsibility
• in order to encourage consumers to pay a good price for their FFV produce, CSR initiatives and labels should inform consumers about the social and environmental conditions and prices of production