A Value Chain Analysis of St Vincent and the Grenadines Banana Industry

The banana industry played an important role in the economy of St Vincent and the Grenadines (SVG) since it was established in the 1950’s. The industry has contributed to the country’s economy by providing employment and development for rural households. St Vincent and the Grenadines has the highest income dependency percentage (22.3%) among the Windward Islands and has traditionally exported bananas to the United Kingdom (UK) under a preferential treatment marketing import system. Preferential access ceased in 1995 when WTO trade rules were implemented. Currently, the EU has eliminated its quota system and has reduced preferential access to its markets. At present, banana from St Vincent and the Grenadines is exported under the Fairtrade label which guarantees a stable price per box. This research examines the SVG banana industry value chain under a new EU marketing and pricing regime. It focuses on the current economic status of the banana industry and the contributions of the major Stakeholders along the chain. A critical analysis was done of the cost of production and the value potential of bananas in both the UK and regional market. Results indicate that the banana industry’s contribution to the economy has declined significantly in the last few decades. The study also found that most of the value is added after the fruit leaves the farmgate, with Winfresh making the highest contribution to value in the chain. Interestingly, while the volume of exports to the UK has been declining, exports to the regional market has been increasing. Further, the value per tonne of banana sold in the regional market has been increasing since 2004. From a marketing perspective it suggests the need for a closer examination of the attractiveness of regional markets, not just Trinidad and Tobago, for SVG bananas.


Editor(s):
Badrie, Neela
Ganpat, Wayne
Issue Date:
2011
Publication Type:
Conference Paper/ Presentation
PURL Identifier:
http://purl.umn.edu/187333
Page range:
1-10
Total Pages:
10




 Record created 2017-04-01, last modified 2017-08-28

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