September 1947 · Haitianmonth known
Estime nationalises the banana trade and hands it to seven friends
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Under a 1935 contract with Standard Fruit, Haitian bananas had reached exports of 7.3 million stems and become the country's second largest earner. The company's ships called at Haitian ports, and the company paid for wharves, buoys, roads and schools. In September 1947 Estime refused to renew the monopoly and nationalised the trade, dividing it into seven concessions granted to seven political allies, one of them Colonel Magloire. The concessionaires cut the price paid to peasant growers, which raised their own margins and gave farmers a reason to plant less. The government chartered Greek and Panamanian vessels to replace the Standard Fruit ships and discovered the chartered vessels had no refrigeration, so cargoes arrived spoiled. Production and exports collapsed in 1948 and stopped altogether afterwards. Estime's defenders said his reforms needed money and his men were in a hurry. The episode shows what taking ownership is worth by itself. The refrigerated ships, the sales network and the working capital stayed with the Americans, and the trade died in Haitian hands inside a year.
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