How Can Bananas Be 29 Cents a Pound?

You may have noticed Chiquita prints labels on bananas from Honduras over pink ribbons supporting breast cancer research. Possibly the company has seen research by Kantar Consulting in the UK. Kantar's Purpose 2020 study found "almost two-thirds of millennials and centennials...express a preference for brands that have a point of view and stand for something." Consultants went on to conclude consumers expect brands to use their social power for positive change.

      Nowadays, the world has a wide variety of models that affect positive change. Religious missionaries and JFK's Peace Corps show how to bring education and skill training to impoverished areas. Experienced nongovernmental organizations rush water, food, and medical quick-fix support when earthquakes and other natural disasters strike, while international banks grant low-cost loans to finance the projects and equipment for long-term solutions. Foundations, universities, and major stockholders pressured South Africa to end apartheid by withdrawing investments from South African companies. Supermarket shoppers lent their economic power to Cesar Chavez's campaign to better conditions for lettuce pickers.

     The mothers, children, and other relatives walking, riding, and floating north to escape violence and poverty in Central America crave positive social change. According to ethicalconsumer.org, United Fruit, now Chiquita, and Standard Fruit, now Dole, came to Central America in the 1890s, because fertile land and government corruption provided excellent conditions for their banana businesses. In time, grocery chains habitually began to use bananas as loss leaders, offering them at low prices to attract shoppers who would buy other items, such as greeting cards that can be $3 or more, at profitable prices. These shoppers now are in a position to pressure supermarkets to buy from suppliers who treat workers fairly. Customers, who work for a living themselves, understand employees are entitled to fair compensation for their work. Those who climb trees to harvest bananas in Guatemala cannot be expected to subsidize grocers by accepting low wages, poor education and housing, and medical problems from unsafe working conditions.

     Today's greater access to worldwide information prompts both consumer concern for the exploitation of labor in foreign countries and exposure to the consequences of government corruption. The Ethics and Anti-Corruption Commission in Kenya recognizes foreign companies involved in corrupt practices "ruin our country." At the same time, what company wants to risk prosecution for bribing government officials for a construction contract in Brazil or to pay off officials in the Democratic Republic of the Congo, if the same commodities are available in Australia?

     Migrant refugees don't want to walk miles to seek asylum from violence and poverty. Consumers and businesses have the power to change the conditions that can help them stay home.   

Africans Learn to Play the Game

Whether a child is playing Candy Land or trading Pokemon cards, an innocent young child can be tricked into trading a valuable card for one less useful. But as they learn how to play the game this kind of trickery no longer works. Africa has a lot of valuable "cards," and Africa will learn, and is learning, not to be fooled by those who take advantage of corruption, questionable land titles, promises of employment, and pretend friendships.

     Since Africa has valuable mineral deposits, the continent has been a target of questionable mining deals. After the Democratic Republic of the Congo seized First Quantum Minerals, the close relationship of an Eurasian Natural Resources Corporation (ENRC) partner with Congo President Joseph Kabila caused First Quantum to question the financial deal that enabled ENRC to purchase its seized copper assets. The legal dispute did not end after Luxembourg-based Eurasian Resources Group (ERG) acquired ENRC and strengthened its position in Africa's copper belt. In fact, ERG's stake in the former ENRC became even more valuable after the Industrial & Commercial Bank of China (ICBC) and China's Export-Import Bank provided $700 million to build the copper and cobalt project that made ERG the world's largest producer of the cobalt used in batteries. The UK's Serious Fraud Office (SFO) continues to investigate ENRC's original deal with the Democratic Republic of the Congo.

     In Hia, Ghana, Bishop Afoakwah walked through mounds of dirt and deep puddles to do his own investigation of a gold mine digging a massive pit on church land. Earlier, after one of the mine's earthmoving machines cut an electrical line that left the town without power, Bishop Afoakwah had met with local chiefs. He understood the church held a legal deed to the land that had been donated by a chief for the purpose of building a clinic and nursing school. During his meeting, the bishop learned various chiefs claimed to protect land for other chiefs and, taking advantage of the interwovern land rights and the high per ounce price of gold, a Chinese mine owner provided a payoff to secure a mining concession on the church's land. At the gold mine, workers said a "Mr. Kumar" owned the Hia site. Two Chinese engineers dashed into the bush, when they saw the bishop approaching. Ghana's Minerals Commission only has eight officials to investigate the country's illegal mining and an incomplete database of mining concessions. President Nana Akufo-Addo, who took office in January, 2017, put Ghana's Chinese miners on notice that he intends to enforce laws governing gold mining.

     Not only have gold mining operations destroyed agricultural land that has fed local farmers for generations, but heavy machinery has buried and severely injured untrained workers and health-damaging cyanide and mercury used to extract gold from stone have contaminated air and water. Farmers who sell their land to miners enjoy only a short-term gain that lasts a few years. Even if the land is returned to them after the mine is exhausted, the three feet of top soil are destroyed and the poor quality clay soil underneath cannot support a family. Yet, workers who fear losing salaries from mining jobs willingly risk their health and ignore environmental consequences. In fact, miners have thrown rocks at inspectors and even killed a fleeing official by rolling over him with a car.

     The path to legal mining in Ghana and in other developing countries is a difficult one. It requires learning "to play the game" without corruption and payoffs, with only those foreign investors willing to train employees and commit to some community development, and with activists like Bishop Afoakwah who are willing to take on lengthy court battles for damages done to the land by illegal miners. In the end, Africans will come to the same conclusion that Cardinal Peter Turkson, archbishop emeritus of Cape Coast, Ghana, did. "It is...unjustifiable for developing countries to fuel the development of richer countries at the cost of their own present and future."

     While Ghana continues to sort out land ownership issues affecting local gold miners, a group of 33 illegal gold miners in Uganda spent four years forming the first gold mine the UK's Fairtrade organization certified in Africa. The Syanyonja Artisan Miners Alliance (SAMA) now boasts: 1) a timbered pit unlike the dangerous open pits where dirt walls collapse, when heavy downpours swamp quarries and whole families of miners, and 2) gold extraction processes that employ proper handling of mercury and cyanide. SAMA's certified gold mine offers small-scale coop members the prospect of premium prices, savings, a local health center, and subsidized school fees. Now that the association pays taxes SAMA members find they have more government influence. SAMA also benefits from the "I Do" campaign sponsored by the Fairtrade Foundation's focus on commodities campaign in the UK, which alerts couples to choose Fairtrade Gold wedding bands.

Earlier posts involving Africa's resources include:

• Wood: Don't Take Any Wooden Nickels, Uncover the Economic Value of Wood
• Coffee: Invest in Africa's Agricultural Future; Coffee Prices Going Up; Allowances Going Down?
• Cocoa: Become A Discriminating Chocolate Consumer, Chocolate Tasting Party and More; Chocolate's Sweet Deals
• Palm oil: Can Small Farms End Poverty?
• Oil: Nigeria's New Beginning
• Diamonds: Diamond Flaws

Also see the earlier post: Why Will Africa Overcome Poverty?"

   
   

Uncover the Economic Value of Wood

We are used to valuing trees because they absorb greenhouse gases (See the earlier post, "A Healthy Environment.") and provide the shade other crops need to grow (See "Coffee Prices Going Up, Allowances Going Down?"). But at a recent 4H meeting of young people who enter their animals and agricultural projects in competitions at county fairs every year, one of the members demonstrated the value of trees after their growing days are finished. Seeing the bowl he had made out of a variety of local woods started members thinking.

     What happens to trees that are uprooted by wind and storms, trees that are removed to make room for roads, utility poles, and developers' projects, evergreen trees after Christmas, and all the area trees that have been removed because they were infested by the emerald ash borer insect? Some dead trees are used for firewood, but others just rot.

     When my sister was in college, I remember she drove several students in one of her art classes to a lot that collected bits and pieces of wood. I have the statue she carved, sanded, and oiled to show, not only the form of a woman, but also the beautiful grain of the wood she used. Besides the grain of wood, the perfume of freshly sawn cherry tree logs first attracted the man who now owns a custom-made furniture business.

     Beyond firewood, there is a market for useful and beautiful objects made from the world's sustainable and rotting wood. Leafing through a catalog from SERRV (serrv.org), I saw how artisans in the Philippines had turned coral tree and acacia wood into birdhouses and bowls, Bangladesh craftsmen had used albizia wood to make stools, and carvers in India had stained and transformed mango and shesham wood into tables. I've also read how a Mozambican wood carver sold an expensive three-foot-tall ebony sculpture to a tourist in Kenya.

     Clearly, trees can play an important role in sopping up greenhouse gases that cause global warming, and wood products can boost a country's economy. A UN study concludes forest land the size of South Africa has disappeared since 1990. In square miles, an article in TIME magazine (September 28, 2015) shows deforested areas have been lost fastest annually since 2010 in the following countries: Brazil (3,799 square miles), Indonesia (2,641), Burma (2,108), Nigeria (1,583), and Tanzania (1,436). Before turning trees into logs for export, these countries and others need to consider how builders can use whole trees instead of steel to support structures and how an increase in their middle class populations represents the income potential of future furniture markets. Moreover, Global Witness and the Environmental Investigation Agency reports illegal logging of rosewood in Madagascar deprives the country of $460,000 a day. Illegal logging also has been used to fund conflicts in Liberia and the Democratic Republic of the Congo.

     Kids might begin to get an appreciation of uses for wood by making craft projects out of Popsicle sticks. They might go on to think about finding jobs operating tractor-powered sawmills, learning how to dry wood, or if they would like to sell products made from wood. Who knows, some day they may be in a position to invite architects and planners to consider showcasing local woods in major projects. For more ideas about the use of wood, check wisconsinurbanwood.org.



   

International Fashion Designers Find Consumer Niches

On "Project Runway" (Lifetime channel at 9 pm ET Thursdays), this season's televised competition is showcasing the influence of international designers. Sandhya channeled her heritage from India to turn a dip-dyed flowered print into an original summer frock that won the show's first challenge and puzzled her U.S. competitors.

What designers such as Sandhya are doing is satisfying consumers who search for fashions and accessories that express their individuality. They may be motivated to wear T-shirts that support a cause as Vivienne Westwood's "Save the Arctic" one does (See the earlier post, "North Pole Flag."). Or they look for the environmentally, sustainable clothes mentioned in the earlier posts, "The World of Fashion" and "Fashion Forward." Mumbai-based fashion designer, Rahul Mishra, for example, espouses "slow fashion." His garments draw on the craftsmanship of India's embroidery experts and weavers to involve many talented village hands in the process of making his clothes. Why? He sees fashion as an opportunity for participation, not just consumption.

 Some fashion consumers also want to be the first to go upscale to provide employment to those manufacturing luxury brands "Made in Africa." One designer who caters to this upscale consumer is Hanneli Rupert, daughter of Johann Rupert, chairman of the Richemont group that includes Cartier, Van Cleef, and other luxury goods. In 2009, she first introduced her Okapi brand, named for the "zebra giraffe" from the Democratic Republic of the Congo. At her Okapi website (okapi.com) and at her Merchants on Long store in Cape Town, South Africa, Ms. Rupert sells bags, card cases, and other African-sourced leather goods. This fall the Okapi brand also will be available online at the luxury fashion Net-a-Porter website (net-a-porter.com).

The New York Times (July 31, 2014, page E5) observed that consumers looking for hard-to-find, unusual products are willing to pay top dollar to artisans with incredible fashion, furniture, and textile skills whether they live in Pakistan, Ethiopia, Peru, or Kenya. This season's "Project Runway" contestants are on the brink of exciting careers.