Worker with bananas
August 2022

Game changer: new banana purchasing approach fosters shared responsibility

The ALDI SOUTH Group is strengthening the sustainability of its banana supply chain via a new approach to buying, which has been developed in partnership with strategic suppliers. This will see the implementation of more responsible purchasing practices and an increase in the transparency of production costs. These improvements to the buying process means that critical cost changes and fluctuations that impact all supply chain stakeholders can be better addressed together.

Cost transparency of production and supply chain

This year, ALDI has collaborated with key business partners to identify the cost factors that could be reflected in a joint and innovative open-book costing approach. By following a partnership approach, jointly setting adequate cost factors, and identifying suitable benchmarks, we can take into account critical price developments for all relevant costs (e.g., packaging, fuel or logistics).

ALDI’s sourcing based on the Fairtrade methodology

Customers, retailers, and producers all see Fairtrade as an expert and trusted organisation, and we saw an opportunity to use best practice to support our new approach. Fairtrade International regularly collects production costs from Fairtrade-certified banana producers. We will use the cost factors published annually by Fairtrade International for our price setting. This does not involve paying the Fairtrade minimum price for all our bananas, but only for the Fairtrade-certified bananas. What it means is that changes to the cost factors underpinning the Fairtrade Minimum Price will be considered in our sourcing. Through this best practice measure, we help to protect workers and stakeholders at production level from the negative impacts of price fluctuations. This further ensures that the banana prices we pay to our suppliers are fairer and more accurately reflect sustainable production costs.

Long-term partnerships for shared responsibility

We are currently developing this more responsible purchasing model with our long-term strategic suppliers throughout 2022. From 2023 onwards, it will cover the majority of our banana buying volume and our plan is to expand it to additional business partners over time. As our strategic suppliers support us in implementing new ways of buying, we commit to long-term partnership and to, at minimum, keeping the banana volumes they supply to ALDI stable. This gives them financial security and allows them to commit to longer-term sourcing and investments in sustainability with their producers.

Victor Manuel Henriquez (CEO of International Fruit Company)

“We recognise the effort ALDI is putting forth in their interest in becoming agents for change. We believe that this approach is a first step to have an integrated negotiation process where the price of bananas is a better representation of the reality of the business.  We also hope that, together with ALDI, we can focus on creating value, look for future opportunities, and build long-lasting relationships.”

Victor Manuel Henriquez (CEO of International Fruit Company)

Find out more


ALDI CR Vision 2030

Human Rights

CR into buying
CR into buying

Resource Efficiency

Sourcing sustainably
Sourcing sustainably

Sustainable Development Goals

8 Decent work and economic growth 12 Responsible consumption and production 17 Partnerships for the goals