European retailers unite to streamline living wage contributions in banana supply chains

Leading European retailers have chosen voluntary contributions - additional payments made by retailers to help close living wage gaps - as the tool to address living wage shortfalls in the banana sector.

Under the ‘Better Together’ collaboration, coordinated by IDH and GIZ, stakeholders from the banana sector agreed on a unified approach to reduce confusion and ease the burden on suppliers and producers.

As part of their commitments to promote living wages in the banana sector, the retailers - from the Netherlands, Belgium, Germany and the UK - recognise identified voluntary contributions the preferred tool to address wage shortfalls in the short term. However, different methods of calculating and distributing these payments have led to inefficiencies and frustration for suppliers and producers.

This alignment represents a meaningful shift towards fairness and predictability in the banana supply chain. With retailers expected to fully adopt the agreed approach in 2026, suppliers and partners will gain more security. The move also shows how coordinated industry action can accelerate progress towards more responsible, trusted and resilient supply chains.

Voluntary contributions are additional payments made by retailers to help close living-wage gaps at farm level. Several retailers are already implementing them—see our case studies for examples.

 A summary of the aligned questions can be found here.