The Fairtrade Foundation is urging U.K. lawmakers to address low or late payments and contracts that shift risk down supply chains as severe weather affects production and banana growers in Latin America seek better pay, The Guardian reported.
The foundation said high winds in parts of Colombia and heavy rainfall in Peru and Ecuador are affecting production. Colombia is among the largest suppliers to the U.K. market, according to The Guardian.
The foundation is calling for U.K. legislation to tackle unfair trading practices in banana supply chains. It says the rules should address low or late payments and contract terms that pass risk down the chain. The Guardian reported that the legislative push is part of growers’ effort to secure better pay amid climate-related pressures.
Producers and workers are bearing the effects of the weather disruptions, The Guardian reported. The foundation’s proposed legislation focuses on the commercial terms governing payments and the allocation of risk between suppliers and buyers.
The Guardian also cited previous El Niño-related production losses and effects of the 1983 event on Ecuadorian exports. The historical examples cover both crop production and export trade in the region.
The foundation’s proposed response is legislation in the U.K., aimed at payment practices and contract terms in banana supply chains.
