True cost analysis and market introduction Organic Bananas

True Price, FairMatch Support, Odin, UDEA, BioRey, Permare and other value chain partners implement the project "True cost analysis and market introduction organic bananas".

This project aims to use the concept of true pricing to remediate negative impact in the supply chain of organic bananas sold by Odin and UDEA, who source in Latin America via intermediaries from APPBOSA (Peru) and Grupo Banamiel (Dominican Republic), respectively.

The project consists of two phases

• Phase A focused on conducting true price analyses in both origins, defining the strategy for phase B and preparing remediation and awareness efforts.
• Phase B implements these strategies – funding improvements at origin and raising consumer awareness of the real social and environmental costs.

A key finding was that short-term trade contracts limited long-term investment. The solution: shift to multi-year contracts, enabling shared investment in plantation renewal and sustainability: an uncommon move in the banana trade. With stable, long-term relations, producers can invest in plantation renovation, boosting both yield and quality while reducing external costs. A revolving fund will finance these improvements in the Dominican Republic. As producers benefit, they repay into the fund, allowing new producers to join and continue the cycle of improvement. In Peru, through financial support, the cooperative is able to supply the farmers with new varieties of plants, that are more resistant to destructive fungi and enable to farmer to have higher yields with improved quality.

Overall goals of phase B

• Implement the remediation projects and reduce the externalities.
• Implement true price awareness at UDEA and ODIN stores.
• Inform and engage consumers in true pricing and remediation.
• Monitor and optimise the remediation projects.
• Prepare supply chain actors to continue the project after withdrawal of RVO funds after 2 years.