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Distribution of Value (WG02)

The Working Group 02 on Distribution of Value seeks to work towards a fair distribution of value along global banana supply chains.

The main objectives of the Working Group (WG) are to:

  • Identify the key actors at all stages of the supply chain
  • Agree on a typology of the different supply chains in the global industry
  • Prioritise what information needs to be gathered in order to work towards a fair distribution of value (e.g. labour costs, FOB, CIF and retail prices)
  • Map the distribution of value in key supply chains (a representative selection of origins and markets)
  • Evaluate and understand the difference between costs of production and costs of sustainable production along the chain
  • Agree on a practical methodology – the Anker methodology – for approximating "living" or "decent" wages at plantation/farm level
  • Support living wage benchmark studies in banana-producing countries, living wage advocacy activities with diverse stakeholders, and living wage implementation efforts
  • Explore the feasibility of various approaches and interventions for the redistribution of value along the chain
  • Explore synergies and exchange relevant information with other WGs of the WBF, as well as externally

In order to make concrete progress on the above objectives, the core group agreed to commission a base study into the methodologies available for implementing living wages in Latin American banana production. This study, co-funded by corporate and civil society members of the core group, was made available to the participants during the meeting in Ecuador.

Several WG02 members have since adopted the Anker methodology as the more sophisticated methodology for calculating living wages, and supported efforts to conduct living wage benchmark studies in banana-producing countries. This work has principally been executed by the Global Living Wage Coalition, and the WBF has engaged in these activities through the Living Wage Advocacy Initiative (LIWIN).

Most recently, the Working Group has established a Subgroup on Covering Costs of Sustainable Production in order to address concerns regarding costs of production. More information on the Subgroup is available here.

All stakeholders in the banana industry are welcome to participate in the WBF. If you are interested to join this Working Group, please contact Victor Prada at victor.prada@fao.org, Camila Reinhardt at camila.reinhardthurtado@fao.org and/or WBF Secretariat at wbf@fao.org.

Facilitators of WG02

  • Alistair Smith (Banana Link / EUROBAN)
  • Xavier Roussel (Dole)
  • Wilbert Flinterman (Fairtrade International)