Banana Industry in Central America

Abstract From the earliest days of Spanish and Portuguese colonial rule up until the late 19th century, banana cultivation in the Americas was carried out mostly by smallholders. That changed around 1880, when schooner captains based in Boston and New Orleans began to buy bananas in the Caribbean and sell them in the United States. In the geographically small countries of Central America, a couple of US-based banana companies have wielded enormous influence. The United Fruit Company (now known as Chiquita) acquired so much power in Guatemala and Honduras that it came to function as a state within a state, giving rise to the notion of “banana republics.” The company consolidated its power through various means: it installed authoritarian civilian and military governments that gave concessions to land, railroads, and ports; it divided its labor force along ethnic and racial lines; it built hospitals, schools, workers’ barracks, and houses for its management; and it used massive amounts of pesticides and herbicides in a capital intensive effort to cultivate varieties of the fruit that North American consumers came to expect but which were susceptible to Panama disease and Black Sigatoka. Bananas and plantains are a dietary staple throughout the tropics, and the diseases that beset the Gros Michel and Cavendish varieties that are grown on monocrop plantations threaten a vital source of healthy and relatively cheap calories that much of the world has come to rely upon. In recent years, consumers and civil society groups have organized to demand more socially and environmentally responsible bananas, creating organic and “fair trade” alternatives to conventional “free trade” bananas.

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