Monday, June 9, 2008

Chiquita Plantation Visit

Friday afternoon, we stopped for a visit to a Chiquita Banana plantation visit. Here we were educated about the banana industry as a whole, learned of different Chiquita operations, and were allowed to tour their facilities. The biggest part of the presentation seemed to be Chiquita's effort to inform us of their groundbreaking Nature and Community Project that I mentioned in an earlier blog that is attempting to make banana growing more sustainable while also restoring natural rain forest around the plantation. Chiquita's commitment to corporate responsibility "is about investing in people today, replenishing the land for tomorrow and setting an example for generations to come."

Some of the things I learned about the banana industry and Chiquita's role include, Bananas grow where yearly rainfall is between 78-98 inches per year with temperature averaging 80 degrees F. Across Panama, CR, Honduras, and Guatemala, Chiquita owns approxiamately 37,000 acres of banana plantations. In 2004, Chiquita shipped 136 million boxes of bananas around the world. The banana industry accounts for 10% of workforce in Cr. Banana plants are considered an herb which makes it the largest in the world. It takes 6-8 months for bananas to develope on the stem. Chiquita encourages opportunities for more income to come into the communities through Group Nogua. Chiquita has joined forces with Rainforest Alliance in an attempt to improve environmental sustainability. Other information about packing and shipping were also provided.

Seeing both the packing facility and where the banana plants grow was amazing. The packing facility was not very big, but from watching the workers, I could tell that the proccess was fined tuned to be very efficient. Every worker had their own job on the assembly line and it was all very interesting to see how the finished product is prepared. The process was nothing like I imagined and I am grateful for being able to experience it. As far as the plantation and the rows of banana plants, I was surprised at the complexity of growing bananas. The use of unatural sprays and bags and such, was all kind of surprising. As far as I could see around me, there were banana plants. Overall, the workers I saw seemed happy or at least not unhappy with their work.

It was interesting to me, that by speaking with my professors, I saw a different view of the banana industry. They said they use too also stop at a Dole banana plantation, but have stopped that because of the bad conditions they saw while there. They were quick to point out that Chiquita is one of the best in terms of safety and cleanliness and just by visiting could be considered better than Dole in terms of sustainability.

Picture of the visit are soon to come!!

Pics From La Selva






From Bottom to Top:
Poison Dart Frog.
Leaves that had been cut by leaf cutter ants.
Spider Monkey.
Wild Hog.
Bullet Ant (about and inch long) and whose bite hurts more than 50 bee stings and causes lots of swelling.

LaSelva Research Station

Thursday we departed San Jose to spend a night at La Selva Biological Research Station. La Selva is part of the Organization for Tropical Studies, which is a group of organizations devoted to the study of tropical rain forests. La Selva is the primary location for this organization and accomadates those wanting to study or observe and is located in the Atlantic lowlands of CR.

During our stay we were scheduled for two different walks. One for late afternoon/early evening and one for early morning. On the first walk we were lucky enough to see many poisonous Dart Frogs, wild pigs, birds, and many different insects. On the morning walk, we attempted to find one of the many poisonous snakes that call La Selva home. We were unsuccessful but the walk again, opened my eyes to the beauty and diversity located in Costa Rica. Pictures of some of our findings are to come!!

EcoTourism 3 (Troubles seen with EcoTourism)

With 5% of the world's biodiversity and 6 different types of ecosystems present in CR, the pressure to preserve these regions is very high. Is Ecotourism the solution to preserving these areas while also allowing Costa Rican citizens to prosper off the land? With 1.5 million tourists a year and Costa Rican Government wanting to double that figure by 2012, the future of ecotourism seems strong, but what is to become of the areas it is supposed to protect and preserve? Costa Rica is a world leader in the developement of the ecotourism industry and should make sure to preserve its number one asset, the natural surrounding people come to see.

With demand so high, more and more Costa Ricans are converting their farms and other businesses into something that has to do with ecotourism. Whether it is a lodge, natural springs spa, or an adventure offering business, an end to expansion is not in sight. All these things are being built in an effort for local people to benefit from the ecosystems that surround them.

The question being posed now, according to Leo Hickman an author of Guardian Books is "should tourists be allowed to access some of the most extreme and sensitive wildlife habitats on the planet? Wouldn't it be better if such places were restricted to all but a few scientists and indigenous communities in order to better protect them? " Although cutting tourism out of the picture might not be totally neccasary, the qoute does raise questions of regulations being placed on ecotourism developement. Costa Rica's former environment and energy minister, Carlos Manuel Rodriguez, believes that "At first, it was only tourists interested in wildlife who came here, but this has changed. We need to stop promoting mass tourism and get fewer tourists who pay more. I would set rules about density and capacity." Diego Bermudez, Costa Rica's president of tour guides union and a professor at Rice Learning Institute, explains some of the detrimental results of over-tourism in his quote, "Ten years ago, I would see five pairs of quetzal [one of the region's most treasured birds] a day in some parks, but now I have to walk for hours off the trails to find them. You never see mammals any more from the trails, either. The tourists aren't to blame - they don't come across the sea just to destroy our habitats. We need to have an ethical code among the companies bringing people here to agree on visitor limits."

The main reason that the system CR presently has in place is not sustainable is the fact that it is largely voluntary. It is time that the entire ecotourism industry become environmentally certified as sustainable. Setting limits to future ecotourism developement ensures that both Costa Rican citizens investment and the environment can begin to grow in a manner that will allow both to be sustainable forever.

Thursday, June 5, 2008

More on Bananas!!

Conditions within the banana industry are not always beneficial to the countries in which the crop is grown. Banana growing operations are largely owned by foriegn corporations and almost all profit leaves the country in which the crop is grown. Usually the plantation owner is the only person to become wealthy and many of the regular workers are exploited in an effort to maximize profit. These exploitations include being badly paid, having few rights, and being in danger of unjust firings and wage reductions.

Other problems the banana industry creates include by-products of harvesting and processing of bananas as well as other harmful waste. These wastes are oftenn dumped in landfills, rivers, oceans, or even un-regulated dumping sites. The accumulation of banana growth waste often results in the spread of disease, contamination of ground water, and harmful effects on those that live around the areas.

A company that is fighting all these problems in an attemt to turn around the whole banana industry is Chiquita Banana, the 2nd largest banana producer in the world. Through their pilot project, Nature and Community Project, Chiquita is trying to develope new processes that solve or address both the environmental and social issues of growing bananas. Some of the rules and regulations that Chiquita has been certified for with regards to workers include:

-No child labor, forced labor, or discrimination
-Safe working conditions and protection of employees health
-Freedom of association and collective bargaining
-No harsh or disrespective treatment
-48 hour work week max, overtime is voluntary and can be no more than 12 hours per week
-Wages meeting and usually exceeding legal or industry standards
-Workers using pesticides are well trained and protected. They also must shower after useage.

For over 4 years, Chiquita has also set into effect through this program, ways in which their plantations are less harmful and even somewhat beneficial to their environmental surroundings (planting more than 1 million trees). By using less and less pesticides and herbicides while also replanting native plants and tress on the plantation to create a natural rain forest, Chiquita is making advances to make their banana plantaions less harmful and more natural to the original environment. From working with Rainforest Alliance to making their plastic bags biodegradable, Chiquita is working towards sustainability.

While this project is currently present on only one plantation, its early success should lead to expansion to more and more platations that Chiquita owns. Doing so will set industry standards high and Chiquita's competitors will be playing the "catch-up" game. The ideas being implemented in Chiquita's Nature and Community project will hopefully reflect throughout the whole industry sooner rather than later.

More Coffee!!

Touching on some of the environmental risks that coffee poses to CR is important to consider when accessing the success of the coffee industry as a whole. As we have learned, it is not good enough anymore to just be successful from a profit point of view and that companies should now be accessed on their relationship with the environment. In the case of the coffee industry as a whole including in CR, there are a few main problems. These problems include, soil erosion, fresh water contamination, and deforeststation.

Both water contamination and soil erosion are caused in general, by the same thing. In the case of water contamination, rain water runoff carries pesticides and other chemicals sprayed on coffee plants to the fresh water streams and rivers of CR. Also, the growth of coffee results in a large amount of organic waste. Though the organic waste does not seem like a bad problem, it is quickly becoming one. When the waste is deposited, it too runs of into the fresh waters where it promotes plant growth which results in the depletion of oxygen. This depletion kills a lot of the natural wildlife that exists in the rivers and streams.

Soil erosion is also becoming an increasingly problematic side effect of growing coffee. It is believed that up to 2/3 of the land Costa Rica uses for animal pastures and agriculture is at a very high risk of erosion. Since coffee is a permanent crop that requires lots of water and for the most part leaves soil unprotected, the areas where it is grown often see hydro-soil erosion occur.

Lastly, deforestation is also something that should be considered when examining the success of the coffee industry. With demand so high for coffee, more and more biodiverse rain forest is being cleared for the planting of coffee plantations. With coffee plants requiring direct sunlight, areas where it is to be grown are often cleared down to the ground. This clearing results not only in the loss of the trees and other plant life but also in the the loss of animal diversity by their habitats being destroyed. According Chris Willey of Rainforest Alliance, "the monoculture of coffee is replacing the most diverse ecosystem on earth".

The problems that coffee growing pose must be addressed. The industry can not be successful in the mindset of environmental sustainability unless the problems stated above are fixed. Solutions must be found by the industry setting its own regulations along with governments setting regulations. Together, the harmful effects of coffee can be stopped and a new trend of being an entirely eco-friendly industry can begin.

Visit to Makol

Today, Thursday June 5th, we took a short trip to a Costa Rican business by the name of Makol. Makol is a company in one of Costa Rica's Free Trade Zones that specializes in the Distribution of medical Supplies in Latin American and other places around the world. From the visit I learned a lot about the medical supplies industry in CR, which happens to be a very large player in their economy. Makol specializes in mostly ER, cancer detecting, and surgical equipment.

The biggest surprise to me was the difficulty Makol goes through to run its business successfully. Problems arise in all sorts of areas including, tenure bids with the governments, terms and contracts with their customers, and the changing prices in the world today. Competition to win bids is usually very fierce and it is difficult to meet the exact wants and needs of customers which usually results in losing the contract. None the less, last year Makol did 1.2 million U.S. dollars worth of sales and hope to grow that figure to 1.5 million this year.

Due to rising costs of oil, both transportation costs and in some cases product costs are rising. This creates difficulty in submitting bids too far into the future. Since accepted bid prices must be honored for up to 4 years, according to Costa Rican law, companies like Makol are very cautious in the amount of cost in their proposals. Secondly, when dealing with Costa Rican hospitals and other various regions, where the government controls the health care market, it is very difficult to win contracts. When the government awards bids, it demands that their exact needs be met and they always choose the lower price. Makol stated that they have lost contracts before when their product was less per ounce but because their bottles were 11 ounces and the government requested 6 ounces, they did not win the contract.

Another problem that Makol expressed was that Costa Rican law is different from those in America and Europe where they gwet a lot of their products. Because of this, many times shipments do not have the required documentation to be legal in CR. This is just another kink in the way business is performed. If shipments from these countries are late to Makol, Makol has trouble getting their orders out to their customers. If an order is late in Costa Rica, by law, Makol must pay up to a 10% fine of the sales amount which can be devastating to the bottom line.

Makol strives to keep inventories as low as possible but realize that getting them to zero is almost impossible. Due to reasons like the vacation month in the EU and Costa Rican hospitals routinely requesting orders in short amounts of time, some inventory must be kept on hand. I asked if inventory was kept electronicall or manually. The answer is that everything has a bar code but that their reader does not work, which results in manual inventory.

As far as Makol's relationship with sustainability, they did not believe that they hurt the environment. But with the shipping they do, based mostly of fossil fuels, their is room for improvement.

Overall, being able to see a piece of the medical supply industry in CR was very educational. It opened my eyes to another thriving part of Costa Rica's economy and enlightened me of the difficulties the industry faces. Makol seems to be successful by attempting to predict the future in terms of cost. To continue to grow, companies like Makol must continue to be able to work with corporations and countries around the world.