Key Takeaways:
– Western supermarkets’ pursuit of lower wholesale prices is causing financial hardship for shrimp producers in the global south.
– Producer’s earnings have fallen by 20%-60% since the pandemic, leading to unpaid and underpaid labor.
– Major supermarkets like Target, Costco, and Walmart in the US, Sainsbury’s and Tesco in the UK, and Aldi and Co-op in Europe are linked to these unfair trade practices.
– Most shrimp processors, who work long hours in cold conditions, are women.
– Research discovered child labor, dangerous working conditions, and wide-spread debt bondage in the shrimp-producing industry.
– Current retail and wholesale price disparity means paying farmers more need not result in higher prices for consumers, but in less profit for supermarkets.
Collapse of Earnings in Southeast Asia
A recent investigation revealed that the financial hardship of shrimp farmers in Vietnam, Indonesia, and India has deepened as a result of aggressive pricing strategies by Western supermarkets. An alliance of NGOs conducted the study, indicating a 20% to 60% slump in earnings from pre-pandemic levels. Producers struggle to meet the pricing demands of large supermarkets by cutting labor costs. This has led to a growing trend of unpaid and underpaid labor, wage insecurity, and many workers not making low minimum wages.
Supermarkets Linked to Exploitative Practices
Major US supermarkets Target, Walmart, and Costco have been linked to these exploitative trade practices. On the other side of the pond, the operations of Billy Sainsbury’s, Tesco, Aldi, and Co-op have also been events in Europe. The investigation amassed robust evidence from over 500 in-person interviews conducted with workers, supplemented by secondary data and interviews from Thailand, Bangladesh, and Ecuador.
Labor Conditions in the Shrimp Industry
Dreadful conditions have become the norm in the shrimp industry, with workers in Vietnam regularly working seven days a week in extremely cold rooms. The situation isn’t any better in India and Indonesia, where researchers found dangerous and unsuitable conditions, unpaid labor, wage deductions, significant debt bondage, and even child labor.
The Gender Dimension of Shrimp Processing
Highlighting a disparity in gender roles, the report found that 80% of the workers involved in shrimp processing are women. These women often work from 4 a.m. to 6 p.m., with pregnant women and new mothers being allowed a mere hour of respite.
Major Retailers Respond
In response to these findings, several supermarket chains have issued statements asserting their commitment to human rights and rejecting labor law violations. Aldi, for instance, outlined their use of independent certification schemes to ensure responsibly sourced shrimp products. Sainsbury’s referred to a comment from the British Retail Consortium, assuring the public of commitment to sourcing products at fair, sustainable prices.
Obfuscation of Supply Chain
The NGO report found that the use of middlemen conceals the true sources of shrimp appearing in Western supermarkets. As a result, many retailers may inadvertently fail to uphold their commitments toward ethical procurement of shrimp.
A Way Forward for Shrimp Producers
The report suggests that the solution to the problem may lie not in increasing consumer prices but in reducing supermarket profit margins. This would require reorganizing trade practices and laws to prioritize fair return for producers. Discussions have commenced with officials from Indonesia and Vietnam to map out possible solutions.
This enlightening investigation shines a light on the exploitation experienced by shrimp farmers in Southeast Asia. It stresses the urgent need for a radical realignment of global trade practices, starting with acknowledging the problem and taking collective measures for sustainable and ethical solutions.