The ALDI SOUTH Group is going beyond certification to help the banana sector become socially, economically, and environmentally sustainable. We are implementing requirements and standards into buying decisions and engaging in initiatives to make living wages a reality for all banana workers.
Sourcing bananas has its challanges
Bananas rank among the best-selling fruits in supermarkets globally. Primarily cultivated in Latin America, Africa, and Asia, bananas serve as a vital economic driver and income source for producers and communities, while also playing a crucial role in ensuring food security for millions worldwide. However, many workers and smallholder farmers involved in banana production are not always earning a living income or living wage. This situation may result from market competition, adverse weather conditions, plant diseases and the high cost of fertiliser. Banana production is agrochemical intensive, with negative impacts on the environment and potentially on workers' health.
One way to ensure social and environmental standards is through the use of independent certification schemes. All bananas offered in our European and US ALDI stores are certified. We either use the Rainforest Alliance standard or buy organic bananas with Fairtrade certification or GLOBALG.A.P. Risk Assessment on Social Practice.
ALDI's banana supply chain activities
As a global retailer, the ALDI SOUTH Group plays a vital role in supporting a banana sector that is not only economically viable but also complies with human rights and environmental standards. We integrate these requirements into our business partner selection and purchasing decisions. All our suppliers are assessed against sustainability metrics and are required to meet and implement our ALDI Business Partner Sustainability Standards.
Wherever possible, we try to shorten and optimise our supply chains. For example, all bananas sold in our Australian stores are domestically sourced, while those sold in our European and US stores are imported.
Together with our strategic suppliers, we have developed an approach to make the ALDI SOUTH Group banana supply chain more sustainable. Responsible purchasing practices based on the Fairtrade methodology and transparency of production costs play a key role. Critical cost changes and fluctuations can be better managed and appropriate cost factors can be set.
Our direct business partners and the producers value the long-term partnership. It allows them to increase their buying volume and gain planning stability. The result is more investment in activities that benefit workers and the environment.
Together with our strategic suppliers, we have developed an approach to make the ALDI SOUTH Group banana supply chain more sustainable. Responsible purchasing practices based on the Fairtrade methodology and transparency of production costs play a key role. Critical cost changes and fluctuations can be better managed and appropriate cost factors can be set.
Our direct business partners and the producers value the long-term partnership. It allows them to increase their buying volume and gain planning stability. The result is more investment in activities that benefit workers and the environment.
Making a living as a banana farmer
Paying a living wage ensures that workers have enough income to afford a decent standard of living for themselves and their families. This includes access to food, water, housing, education, healthcare, transportation and other basic needs. The ALDI SOUTH Group aims to close the gap and is committed to a decent standard of living in banana supply chains.
To this end, we are involved in various initiatives such as the German Retailers' Working Group on Living Income and Living Wages and UK retailer coalitions. A particular focus of these groups is to assess gaps in living wage and living income and to pilot approaches to address these gaps. They also support trade unions and collective bargaining structures in banana producing countries that promote a decent standard of living for agricultural workers.
Together with ALDI Nord, other stakeholders and producers, we piloted a living wage verification process in the major banana production countries in Latin America.
The project involved suppliers, traders, farms, workers, Banana Link, and trade unions. It showed that through dialogue, collaboration and building trust, sensitive information could be shared, enabling more accurate wage calculations. The pilot also demonstrated the potential of worker-led verification.
Together with ALDI Nord, other stakeholders and producers, we piloted a living wage verification process in the major banana production countries in Latin America.
The project involved suppliers, traders, farms, workers, Banana Link, and trade unions. It showed that through dialogue, collaboration and building trust, sensitive information could be shared, enabling more accurate wage calculations. The pilot also demonstrated the potential of worker-led verification.
Transparency in banana supply chains
We need to know where our products come from to ensure compliance, analyse risks and implement projects. Our business partners are important allies in increasing the transparency of our supply chains. For bananas, we publish the names and addresses of our direct business partners (Tier 1 suppliers).
Find out more about our policies, initiatives, and projects for bananas. The Banana Factsheet provides information about the ALDI SOUTH Group for benchmarking enquiries.
Source: *BananaLink
