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THE SAINT LUCIAN BANANA INDUSTRY
The Banana Industry has been the islands main foreign exchange earner and has contributed
greatly to the development of St. Lucia. As a result, it is referred to as "Green Gold". The road, however, has not always been very smooth. Hindrances of banana disease and shipping (especially during the
World Wars) and industry political unrest have added bumps to the road.
The banana industry started in 1925 when Swift Banana Company, a subsidiary of the United
Fruit Company acquired lands inSt. Lucia for the cultivation of bananas. Small farmers were also encouraged to cultivate the crop. However, the venture was short lived, as the prevalent variety was destroyed by
Panama disease and the company was quickly liquidated.
Another attempt was made in 1933 when a Canadian Buying Company offered a fixed five-year
contract for the purchase of all bananas that were delivered to the wharves in acceptable condition. The Banana Association was formed as a statutory body to purchase fruit from growers for delivery to wharves for
sale to the company. This contract was entered into for the five-year period 1939 to 1945; but as the volume of bananas increased the dreaded Panama disease struck again.
In 1948 when a Canadian fruit company, Antilles Products Limited, offered a fifteen
(15) year contract for the purchase
of one (1) million stems of bananas. The Colonial Office, 3 years later, supplied a team of agricultural experts to provide the appropriate technical recommendations for improved production. Their recommendations suggested a change from a statutory body to a Farmers’ Association to be operated, "without government interference," as a purely commercial venture. A grant was made for a full-time Agriculture Officer as its technical director.
The association consisted mainly of large growers in the beginning, partly because of
their ability to supply a considerable
proportion of the required fruit and because of their ability to conduct the required business batters. The Association in a relatively short time was able to attract middle and small scale operators.
In the 1950’s the Banana Industry expanded in the face of a declining Sugar Industry
which suffered from a depression in the World Sugar Market caused by a cheaper beet sugar. New disease
resistant planting materials were then introduced and for the first time a company from the United Kingdom, Fooley and Barnes, began purchasing bananas. By 1953 the Banana Growers Association functioned as a commercial company incorporate with 291 shares and an elected board of Directors. Branches of the Association were formed throughout the island and delegates were elected to represent their districts at annual general meetings. Membership was open to any grower with a minimum of thirty banana plants. A new branch could be formed with 15 members
The Functions of the St. Lucia Banana Growers Association (SLBGA) were as follows:
 To purchase and export of bananas to the UK. (the SLBGA was the sole legal exporter of
fruit to the UK. )
To supply farmers with the inputs required for production.
To provide Technical support through its extension services.
To monitor and control the recommended farm husbandry practice to ensure profitable
operations.
Geest Industries Limited took over the contract to purchase bananas for the United Kingdom market. With a
guaranteed market then, export figures climbed rapidly to make bananas St. Lucia’s chief export crop by 1957.
A Windward Island Banana Trade was then firmly established with St. Lucia joining with St. Vincent, Dominica and Grenada to collectively ship their fruit through Geest to the United Kingdom.
From the outset, it became necessary to aid growers without transportation and the shortage of buying sheds
proved to be a disadvantage to some growers. Between the Association and government, measures were adopted
to support the growing industry by feeder roads, the availability of extension personnel, and limited credit.
With the expansion of banana production in St. Lucia and other Windward Islands, the need for a sub-regional association encompassing the four territories was recognized.
The survival strategy of the Banana Industry of the Islands was to form an alliance among them to realize
greater strength in negotiations and other industry matters. In 1958, the Windward Island Banana Association (WINBAN) was formed with three major objectives:
Negotiate the price of bananas with the buying company
Maintain insurance scheme
Purchase fertilizer in bulk.
The head offices was located in Dominica and later transferred to St. Lucia. The development services of WINBAN would thereby provide a somewhat advantageous position for banana growers in Saint Lucia.
By 1960 the predominant source of agricultural exports from Saint Lucia was bananas to a total value of $3.5 million from 2.5 million stems of fruit. For the following decade the industry showed tremendous increases in
production derived from small-scale peasant farmers, the majority of whom operated five or less acres. The security of a growing market providing a basic weekly income, combined with effective organisation for the
delivery of necessary services, resulted in the expansion of banana production. The association, by 1963 had 10,
000 registered members, and increases of ten-fold from 1055 in 1954. An enlarged economic impact on the national level led to a significant increase in the social and political role by members, and particularly, the
leadership of the association.
Agriculture as a major contributor to GDP grew by 33% in 1982, 14.8% in 1983, 8% in 1984, 12.3% in 1985 and
12.4% in 1986. This growth pattern has been challenged only by the construction industry, which derives part of
its thrust from the banana industry through the multiplier effect. More half the population was directly or indirectly dependent on the industry for income and employment.
The export of bananas – the major agricultural product was approximately 48 and 67 % of the total exports for
the period 1977 –79 and 1985 –87 respectively. Banana production and marketing have played a very dominant
role in the economic development of St. Lucia. The growth of exportable bananas between 1986 –89 shows an increase of approximately 12%, brought about an upsurge in rural incomes which has had a varied impact on
agriculture and the economy as a whole. Growth was moderated by setbacks due to severe drought conditions
and tropical storm damage. The Banana Industry has provided cash incomes, which has filtered into many
sectors of the economy such as construction, commerce and transportation. It has also provided resources to finance diversification into other crops.
From the 1960’s distrust and dissatisfaction over the management of the association has commissioned a number
of inquiries 1963, 1979 and 1989. The Government, having to intervene on several occasions to resolve conflicts
and give financial support to the SLBGA, decided to change the legal status of the organization-from a private to a statutory body.
The greatest challenge has been the establishment of the single European market in the early 1990’s, which
affected the price levels; the discontinuing of the protection on the UK market and the challenge of the US
government. The United Kingdom remains the Windward Islands main market, though concessions have stiffened,
high quality standards set and increased competition from Central American and African suppliers who flood the
market (causing prices to decrease). However, with some measure of protection and the introduction of the
Certified Grower Programme, quality has improved beyond what was achieved previously. To some extent this has
influenced the level of confidence the supermarkets have in the banana industry of the St. Lucia and the other
islands. The main supermarkets in the UK have articulated their intention to continue conducting business with the Windward Islands, provided their quality standards are met.
Improvements in the quality of Windward Islands' fruit and the tariff quota regime put in place by the European
Union have reduced the competition from these suppliers. The Winward’s market is therefore more stable
though more fruit is produced in the winter, when demand is only about sixty percent of that of summer.
With the erosion of the protected status afforded to bananas from the Windwards, in 1991 Geest and Winban
embarked on a campaign to promote, Windward Bananas in an attempt to retain and increase market share. One of activities of this campaign was the development of a Windwards' brand known as the 5 Isles. From 1995
bananas were exported in the name of the Windward Islands Banana Development and Exporting Company Ltd. (WIBDECO), formerly WINBAN. WIBDECO negotiates contracts with Geest Industries Limited, communicate
marketing standards and recommend field and harvesting practices in order to ensure that required quality levels are obtained. In 1997, WIBDECO in a joint venture bid with FYFFES, purchased Geest Industries
Limited.
In October 1998 the St. Lucia Banana Growers Association (SLBGA) was again transformed to a private company
known as the St. Lucia Banana Corporation (SLBC). Later that same year the Tropical Quality Fruit Company (TQF) began purchasing bananas for export as well.
Future of the Industry
To reposition it-self and bring about income stability to the agricultural sector.
Reduction of cost of production through increase bunch to box ratio together with more efficient farmers meeting fruit quality standards, the industry will face possible over production. It is therefore necessary to
carry out product development and market research for banana by-products.
The UK is committed to restrict access to its banana market by other suppliers in preference to Windward
Islands and Jamaica. As a result, in the short and medium term, new technologies will be introduced with the financial and technical support from the European Union.
There has been a marked decline in banana production for the past six years. In an attempt to reverse the
situation, a Banana Recovery Plan, with the sponsorship and support of the European Union, is being implemented.
This plan is expected to facilitate the restructuring and the modernization of the industry and to enable it to survive in a totally liberalized European Market.
The establishment of irrigation systems in hundred of acres of bananas through Stabex funding.
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