BANGKOK (AP) 鈥 A new investigation focused on three of the world鈥檚 largest producers of shrimp released on Monday claims that as big Western supermarkets make windfall profits, their aggressive pursuit of ever-lower wholesale prices is causing misery for people at the bottom end of the supply chain.
The , which provide about half the shrimp in the world鈥檚 top four markets 鈥 the United States, European Union, United Kingdom and Japan 鈥 is based on research done by an alliance of NGOs. It found a 20%-60% drop in earnings from pre-pandemic levels as producers struggle to meet pricing demands by cutting labor costs.
In many places this has meant unpaid and underpaid work through longer hours, wage insecurity as rates fluctuate, and many workers not even making low minimum wages.
Supermarkets linked to facilities where exploited labor was reported by workers include Target, Walmart and Costco in the United States, Britain鈥檚 Sainsbury鈥檚 and Tesco, and Aldi and Co-op in Europe.
The regional report brought together more than 500 interviews conducted in-person with workers in their native languages, in India, Indonesia and Vietnam 鈥 published separately as country-specific reports 鈥 supplemented with secondary data and interviews from Thailand, Bangladesh and Ecuador.
What did the researchers find?
In Vietnam, Hawaii-based Sustainability Incubator investigators found that the workers who peel, gut and devein shrimp typically work six or seven days a week, often in rooms kept extremely cold to keep the product fresh.
Some 80% of those involved in processing shrimp are women, many of whom rise at 4 a.m. and return home at 6 p.m. Pregnant women and new mothers can stop one hour earlier, the report found.
In India, researchers from the Corporate Accountability Lab found that workers face Highly salinated water from newly dug hatcheries and ponds, tainted with chemicals and toxic algae, also contaminate surrounding water and soil.
Unpaid labor prevails, including salaries below minimum wage, unpaid overtime, wage deductions for costs of work and 鈥渟ignificant鈥 debt bondage, the report found. Child labor was also found, with girls aged 14 and 15 being recruited for peeling work.
In Indonesia, three non-profit research organizations found that wages have fallen since the COVID-19 pandemic and today average $160 per month for shrimp workers, below Indonesia鈥檚 minimum wage in most of the biggest shrimp-producing provinces. Shrimp peelers routinely are required to work at least 12 hours per day to meet minimum targets.
What do the supermarkets say?
Switzerland鈥檚 Co-op said it had a 鈥渮ero tolerance鈥 policy for labor law violations and that its producers 鈥渞eceive fair and market-driven prices.鈥
Germany鈥檚 Aldi did not specifically address the issue of pricing, but said it uses independent certification schemes to ensure responsibly sourcing for farmed shrimp products, and would continue to monitor the allegations.
鈥淲e are committed to fulfilling our responsibility to respect human rights,鈥 Aldi said.
Sainsbury鈥檚 referred to a comment from the British Retail Consortium industry group, which said its members were committed to sourcing products at a 鈥渇air, sustainable price鈥 and that the welfare of people and communities in supply chains is fundamental to their purchasing practices.
The calling the allegations in the report 鈥渦nfounded, misleading and detrimental to the reputation of Vietnam鈥檚 shrimp exports,鈥 citing government labor policies.
The NGO's report stresses that using middlemen to buy the shrimp obfuscates the true sources of shrimp that appear in western supermarkets, so many retailers may not be following ethical commitments they鈥檝e made about procuring shrimp.
Only about 2,000 of the 2 million shrimp farms in the major producing countries are certified by either the Aquaculture Stewardship Council or the Best Aquaculture Practices ecolabel, making it "mathematically impossible for certified farms to produce enough shrimp per month to supply all of the supermarkets that boast commitments to purchasing certified shrimp,鈥 the report says.
What can be done?
U.S. policymakers could use antitrust and other laws already in place to establish oversight to ensure fair pricing from western retailers, rather than imposing punishing tariffs on suppliers, says Katrina Nakamura of Sustainability Incubator, who wrote the regional report.
In July, the requiring companies to 鈥渋dentify and address adverse human rights and environmental impacts of their actions inside and outside Europe.鈥
Officials from Indonesia and Vietnam have met with the report's authors to discuss their findings and look for solutions.
Given the current disparity in retail and wholesale prices, paying more to farmers would not have to mean higher prices for consumers, the Sustainability Incubator report said, but it would mean lower profits for the supermarkets.
鈥淟abor exploitation in shrimp aquaculture industries is not company, sector, or country-specific,鈥 the report concludes. 鈥淚nstead, it is the result of a hidden business model that exploits people for profit.鈥
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This version has corrected the spelling of a researcher's name to Katrina not Katrin.
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This story was supported by funding from the Walton Family Foundation. The AP is solely responsible for all content.
