Banana supply chain: How purchasing practices influence outcomes for producers, exporters, and workers

Until now, efforts to improve labour conditions in the banana sector have largely been focused on the production end of the chain. This has left one key area unexamined: the impact of retailer purchasing practices on workers. This report sets out to address this gap.  

The assessment draws on a variety of surveys and interviews with Tier 1 and Tier 2 suppliers and retailers. The research draws on a variety of surveys conducted across both Tier 1 and Tier 2 suppliers, as well as retailers’ buying teams, human rights teams, and where applicable, buying agencies. The research indentified where the experience of suppliers and retailers’ perceptions align, and where they diverge. It highlights the structural and operational factors that shape these differences and examines how specific purchasing practices create impacts across the supply chain and, ultimately, for workers.  

In addition to the findings, the report identifies gaps and establishes priority areas for making improvements. 

About this report

The work forms part of the wider efforts on living wages in the banana sector. This includes the German Retailers Working Group on Living Income and Living Wages coordinated by Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ)’s Sustainable Agricultural Supply Chains Initiative (SASI), and the national Banana Retail Commitment on Living Wages for banana supply chains in Belgium, the Netherlands, and the UK, coordinated by IDH.

The assessment itself was completed in partnership with ETI and delivered through a collective process involving twelve retailers participating in the German, Belgian, Dutch and British retail banana commitments.

Findings 

The assessment shows that retailers’ purchasing practices have a direct and significant influence on supply chain actors business and labour conditions. A clear pattern emerged: Retailers of ten expressed confidence in their practices, while suppliers described very different experiences. This divergence highlights where purchasing practices create pressure that cascades down to workers. 

The benchmarking also revealed variation between retailers, creating opportunities for peer learning and strengthening internal discussions on responsible purchasing. 
 
From the suppliers’ perspective, the assessments highlighted six key areas requiring further attention: 

• Power imbalances and commercial pressure
• Prices that do not sufficiently cover the real cost of production
• Audit fatigue
• Diverging technical specifications across markets
• Pressure resulting from low retail prices and claims management practice
• Challenges in implementing living wage commitments. 

These findings underline that purchasing decisions can have far-reaching consequences beyond commercial relationships, influencing suppliers’ ability to invest in better working conditions and wage improvements. 

A more detailed analysis of the findings can be found in the full report and summary, available in English, French and Spanish above.