A new investigation by AP has revealed that the pursuit of profits from low wholesale prices by large Western supermarkets is causing labour exploitation throughout the aquaculture industry in Vietnam, Indonesia and India.
An investigation by a coalition of non-governmental organizations (NGOs) focused on three of the world’s largest shrimp producers.
Analysis shows that earnings of producers who supply shrimps to the top markets in the world–the United States and Europe, as well as the United Kingdom and Japan- have dropped by up to 60% from their pre-pandemic level.
In order to keep up with supermarket prices, producers have been forced to reduce costs. This has primarily affected labor. Unpaid overtime hours, wage instability, and unpaid work below minimum wage are all the result.
A report paints an ominous picture of the shrimp workers
More than 500 interviews with shrimp workers were conducted, supplemented with data from secondary resources, in order to create a vivid picture of what life is like for laborers working in these countries.
The report shows that workers in Vietnam peel and process shrimp six to seven days per week under freezing conditions, all for the sake of product quality.
Women who make up 80% of workers are most affected. They often work long shifts, rising as early as 4:00 am and returning to their homes after 6:00 pm.
The conditions are still grueling, even though pregnant women and mothers can stop an hour earlier.
Shrimp workers in India face more dangerous conditions.
The Corporate Accountability Lab researchers found that using highly-salinated water combined with toxic alga and chemicals from hatcheries contaminates surrounding environments.
In some places, girls as young 14 were recruited to peel shrimp.
Many workers do not receive the minimum wage and are subjected to wage deductions and overtime pay.
In Indonesia, wages have dropped sharply after the COVID-19 epidemic.
In order to achieve basic production goals, shrimp workers who earn an average of $160 per week – below the minimum wage for most areas – are often forced to work 12 hour days.
What was the response of supermarkets to this investigation?
The report reveals that some of the largest supermarkets in the world, such as Target, Walmart and Costco in the US, Sainsbury’s in Europe, Tesco in Britain, Aldi in Germany, and Co-op and Sainsbury’s in Europe, have facilities in these locations.
Other supermarkets have a more cautious response. While the Co-op in Switzerland has stated it is committed to a policy of “zero-tolerance” for any labor violation, and that its workers are compensated fairly, others responded with scepticism.
Aldi, a German supermarket chain, referred to certification programs that ensured the responsible sourcing and production of shrimp. However it didn’t specifically mention pricing.
Sainsbury’s referred to British Retail Consortium (BRC), an industry association, who reaffirmed the commitment of its members to fair pricing, ethical sourcing, and continued to support them.
The Consortium noted that purchasing practices should be based on the wellbeing of global workers.
However, the Vietnam Association of Seafood Exporters and Producers strongly rejected these findings and called them “unfounded and false.”
The government has policies in place that protect workers and promote ethical behavior.
The hidden model of labor exploitation and shrimp certification
The report made a critical discovery: middlemen are responsible for obscuring shrimp’s origin, which allows Western supermarkets maintain their ethical obligations without having to adhere to them.
The report states that only 1,000 out of 2,000,000 shrimp farms located in Vietnam, Indonesia and India have been certified to recognized standards, such as Aquaculture Stewardship council or Best Aquaculture Practices certification.
Due to this discrepancy, certified farms cannot supply enough shrimp for all supermarkets that claim to only purchase ethically-sourced shrimp.
The lack of certification in the sector allows for labor exploitation in some areas.
Can policy changes help improve labor conditions?
Katrin Nakamura is the author of the Sustainability Incubator report in Western countries. She believes that governments can take aggressive measures to make retailers more accountable.
Instead of imposing tariffs, antitrust laws can be used to guarantee fair prices that do not put undue pressures on producers.
She claims that these changes would protect workers and still allow for competitive prices for consumers.
The European Union has adopted in July 2024 a directive that requires companies to consider human rights and the environment when establishing their supply chain.
In addition, Indonesian and Vietnamese officials have also engaged in discussions with the authors of the report to discuss possible solutions.
In conclusion, the report notes that labor exploitation is widespread in the shrimp sector and not limited to a few companies or nations.
Nakamura:
This is a result of an unreported business model which exploits the people to make money.
She added that improving labor conditions wouldn’t necessarily increase prices, but it would reduce the margins of supermarkets.
The post Shrimp farmers exploited by supermarkets in pursuit of profit may be updated as new information becomes available.
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