History of modern banana plantations in the Americas
Encyclopedia
Although bananas have been planted for thousands of years, the development of an intercontinental trade in bananas had to wait for the convergence of three things: modern rapid shipping (steamships), refrigeration, and railroads. These three factors converged in the Caribbean
in the 1870s, and would lead to the development of large-scale banana plantations, usually owned and operated by highly integrated large corporations such as Dole
and Chiquita Brands International
.
based business men began work on railroads that would allow the Isthmus of Panama
to be traversed. Minor C. Keith
and won the right to build a trans-Isthmus railroad through Costa Rica
in 1871.
in 1876, a New York based sea captain named Lorenzo Dow Baker
returned from a voyage to the Orinoco River, and stopping in Jamaica
bought 160 stems of bananas in the hopes that he could recoup losses from his voyage by selling them in Philadelphia. His gambit was successful, and he quickly began shipping from Jamaica to North America. He then joined with Boston based Andrew Preston
to form the Boston Fruit Company
, the first company to engage in all aspects of the banana industry. Boston Fruit eventually merged with other firms to form the United Fruit Company
that would eventually become today's Chiquita Brands International
. The secret to the Boston Fruit Company's success with the use of early forms of refrigeration to keep the bananas from becoming overripe in the voyage from the Caribbean.
The combination of land concessions to the infrastructure builders, usually subsidiaries of the shipping companies turned fruit producers and the monopoly over railroad infrastructure and shipping allowed the United Fruit Company and Standard Fruit to achieve nearly complete control over the economies of the countries in which they operated. Since banana exports came to dominate the overseas trade and most of the foreign exchange earnings of Central American countries, and the companies could use their financial clout as well as carefully established connections with local elites, they had great influence over politics in those areas, leading O. Henry
, who lived in Honduras
(which he called "Anchuria") in 1896-97 to coin the term Banana Republic
for them. Company influence was buttressed both by their willingness to hire mercenaries as paramilitary forces and to involve the United States government in military interventions when they felt their interests were threatened.
Although the companies claimed that they paid better wages than the local economies, their wage scale for rural workers was low, and company polities favored low wages and kept them low. As some compensation, company employees did have access to schools, hospitals and housing from the company. This housing was usually segregated, "White Zones" were reserved for the company elite, and included better houses, recreational facilities, and schools; other employees lived outside this zone. Racial discrimination policies that were widespread in the United States at the time were transported to Central America.
The companies never used as much land as they acquired. They learned early that the plants were vulnerable to hurricanes, and the Panama Disease
which began to appear in the 1910s in Panama completely destroyed banana growth very rapidly in areas where it took hold. As a result they both acquired far more land than they needed to support cultivation of bananas, and they also left these lands vacant as a reserve. Such policies in countries like Guatemala where landlessness was prevalent led to anti-company dissent and inhibited land reform efforts. During the Cold War, companies labeled land reform efforts as Communist and could again call on the U. S. to send military assistance to keep them down.
Caribbean
The Caribbean is a crescent-shaped group of islands more than 2,000 miles long separating the Gulf of Mexico and the Caribbean Sea, to the west and south, from the Atlantic Ocean, to the east and north...
in the 1870s, and would lead to the development of large-scale banana plantations, usually owned and operated by highly integrated large corporations such as Dole
Dole
Dole may refer to:*The Grain supply to the city of Rome in ancient times.* Since the early 20th Century, a colloquial term referring to government public assistance programs; see Unemployment benefits. Originally it referred to any charitable gift of food, clothing or money. The dole has taken on...
and Chiquita Brands International
Chiquita Brands International
Chiquita Brands International Inc. is an American producer and distributor of bananas and other produce, under a variety of subsidiary brand names, collectively known as Chiquita. Other brands include Fresh Express salads, which it purchased from Performance Food Group in 2005...
.
Origins
The first step in the link can be said to have taken place when United StatesUnited States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
based business men began work on railroads that would allow the Isthmus of Panama
Isthmus of Panama
The Isthmus of Panama, also historically known as the Isthmus of Darien, is the narrow strip of land that lies between the Caribbean Sea and the Pacific Ocean, linking North and South America. It contains the country of Panama and the Panama Canal...
to be traversed. Minor C. Keith
Minor C. Keith
Minor Cooper Keith was a U.S. railroad, fruit, and shipping magnate whose business activities had a profound impact in Central America and in Colombia.- Early life :...
and won the right to build a trans-Isthmus railroad through Costa Rica
Costa Rica
Costa Rica , officially the Republic of Costa Rica is a multilingual, multiethnic and multicultural country in Central America, bordered by Nicaragua to the north, Panama to the southeast, the Pacific Ocean to the west and the Caribbean Sea to the east....
in 1871.
in 1876, a New York based sea captain named Lorenzo Dow Baker
Lorenzo Dow Baker
Lorenzo Dow Baker was an American sailor, ship's captain and businessman whose voyage from the Orinoco to Jamaica and then to Philadelphia launched the modern banana production industry...
returned from a voyage to the Orinoco River, and stopping in Jamaica
Jamaica
Jamaica is an island nation of the Greater Antilles, in length, up to in width and 10,990 square kilometres in area. It is situated in the Caribbean Sea, about south of Cuba, and west of Hispaniola, the island harbouring the nation-states Haiti and the Dominican Republic...
bought 160 stems of bananas in the hopes that he could recoup losses from his voyage by selling them in Philadelphia. His gambit was successful, and he quickly began shipping from Jamaica to North America. He then joined with Boston based Andrew Preston
Andrew Preston
Andrew Woodbury Preston was a prominent American businessman at the turn of the 20th century. In 1884, Preston and nine others formed the Boston Fruit Company, the birth of the modern banana business. Later, in 1899, Preston and Minor C. Keith combined ventures to form the United Fruit Company...
to form the Boston Fruit Company
Boston Fruit Company
The Boston Fruit Company was a fruit production and import business based in the port of Boston, Massachusetts. Andrew W. Preston and nine others established the firm to ship bananas and other fruit from the West Indes to north-eastern America. At the time, the banana was "considered a rare and...
, the first company to engage in all aspects of the banana industry. Boston Fruit eventually merged with other firms to form the United Fruit Company
United Fruit Company
It had a deep and long-lasting impact on the economic and political development of several Latin American countries. Critics often accused it of exploitative neocolonialism and described it as the archetypal example of the influence of a multinational corporation on the internal politics of the...
that would eventually become today's Chiquita Brands International
Chiquita Brands International
Chiquita Brands International Inc. is an American producer and distributor of bananas and other produce, under a variety of subsidiary brand names, collectively known as Chiquita. Other brands include Fresh Express salads, which it purchased from Performance Food Group in 2005...
. The secret to the Boston Fruit Company's success with the use of early forms of refrigeration to keep the bananas from becoming overripe in the voyage from the Caribbean.
The combination of land concessions to the infrastructure builders, usually subsidiaries of the shipping companies turned fruit producers and the monopoly over railroad infrastructure and shipping allowed the United Fruit Company and Standard Fruit to achieve nearly complete control over the economies of the countries in which they operated. Since banana exports came to dominate the overseas trade and most of the foreign exchange earnings of Central American countries, and the companies could use their financial clout as well as carefully established connections with local elites, they had great influence over politics in those areas, leading O. Henry
O. Henry
O. Henry was the pen name of the American writer William Sydney Porter . O. Henry's short stories are well known for their wit, wordplay, warm characterization and clever twist endings.-Early life:...
, who lived in Honduras
Honduras
Honduras is a republic in Central America. It was previously known as Spanish Honduras to differentiate it from British Honduras, which became the modern-day state of Belize...
(which he called "Anchuria") in 1896-97 to coin the term Banana Republic
Banana Republic
Banana Republic is an American clothing brand founded by Mel and Patricia Ziegler in 1978 as a travel-themed clothing company; it has subsequently largely eliminated this tropical or travel-related theme. The company was bought by Gap in 1983...
for them. Company influence was buttressed both by their willingness to hire mercenaries as paramilitary forces and to involve the United States government in military interventions when they felt their interests were threatened.
Impact of Company Dominance
Although banana production for export had begun in much of mainland Central America in the 1880s, its initial impetus was from local small or medium sized holdings. As the infrastructure companies gained control of land around their railroads, however, they used their capacity to create much larger holdings and their control of trade to force the smaller competitors out. In addition they brought in thousands of new workers to labor on these large estates, many from the Pacific side of the country, many others from the English-speaking Caribbean. Company policies often favored the English speakers for higher level jobs, thus the most important positions were held my U. S. born European-Americans, though African descended Caribbean people were also favored in lesser but still skilled work.Although the companies claimed that they paid better wages than the local economies, their wage scale for rural workers was low, and company polities favored low wages and kept them low. As some compensation, company employees did have access to schools, hospitals and housing from the company. This housing was usually segregated, "White Zones" were reserved for the company elite, and included better houses, recreational facilities, and schools; other employees lived outside this zone. Racial discrimination policies that were widespread in the United States at the time were transported to Central America.
The companies never used as much land as they acquired. They learned early that the plants were vulnerable to hurricanes, and the Panama Disease
Panama disease
Panama disease, a Fusarium wilt, is a banana plant disease caused by the fungus Fusarium oxysporum. The fungus attacks the roots of the banana plant. The disease is resistant to fungicide and cannot be controlled chemically.-History:...
which began to appear in the 1910s in Panama completely destroyed banana growth very rapidly in areas where it took hold. As a result they both acquired far more land than they needed to support cultivation of bananas, and they also left these lands vacant as a reserve. Such policies in countries like Guatemala where landlessness was prevalent led to anti-company dissent and inhibited land reform efforts. During the Cold War, companies labeled land reform efforts as Communist and could again call on the U. S. to send military assistance to keep them down.