Economy

El Banana Industry in Honduras

Bananas were introduced to Central America by Spanish missionaries in the first years of colonization but were cultivated only on a small scale for local consumption. Banana exports began in the 1860s when locally owned plantations on the north coast started selling their fruit to passing tramp freighters who in turn sold their loads in the United States and Europe . When growers and boat captains realized the moneymaking potential of the trade, more plantations sprang up along the coast. For the first few decades, Hondurans owned and worked the banana fields, meaning local growers could sell to the highest bidder and make significant profits. By the turn of the century, however, North American exporters realized they could boost their earnings by running their own plantations and set about gaining control of as much of the Honduran north coast as possible.

This conversion of the north coast into a virtual North American colony was led by three companies: United Fruit (now Chiquita), Cuyamel and Standard Fruit (now Dole). Some land was actually purchased by the companies, but much more was awarded to them by the government in massive concessions, in return for railroad construction and jobs. Additionally the companies had no compunctions about paying bribes and even fomenting the occasional revolution to keep government officials in line. By the second decade of the 20^th century, the banana companies held almost one million acres of the countries most fertile lands, were making huge profits and unabashedly manipulated government officials to maintain the status quo.