Reverberations continue following a story published last week by the Guardian, a British newspaper, alleging the use of “slave labor” by vessel owners that supply raw material to make fishmeal used by Thailand’s shrimp producers. Bangkok-headquartered Charoen Pokphand Foods (CPF), the world’s largest producer of farm-raised shrimp, was cited as a recipient of such product in the article.
Most of the output from Thailand’s shrimp industry – which exported more than 348,000 metric tons of primarily frozen product in 2012 valued at US$ 3.2 billion (36.06% of total seafood exports worth US$ 8.8 billion) – comes from an aquaculture sector that relies on fishmeal as feed for growing shrimp. Most of the harvest is distributed to retail chains, foodservice operators and makers of ready meals in North America, Asia and Europe.
Among the major supermarket operators identified as buyers of cooked shrimp and value-added shrimp-based dishes from CPF are Aldi, Carrefour, Colruyt, Costco, Iceland, Makro, Morrisons, Tesco, The Co-operative and Walmart.
On June 12, Boulogne Billancourt, France-headquartered Carrefour, the fourth largest food retailer in the world, announced that it had suspended purchases of shrimp from CPF pending an audit of its supply chain. Norwegian retailer Ica followed suit, and reportedly has already removed CPF-supplied shrimp from its shelves.
CPF’s shrimp export value to Carrefour in 2013 was approximately US$ 4 million, accounting for 0.03% of the diversified agribusiness conglomerate’s total revenue of US$ 12 billion last year.
On June 13 share prices for Charoen Pokphand Foods and several other frozen seafood companies listed on the Stock Exchange of Thailand fell, as some investors were apparently concerned that boycotts of shrimp and possibly even trade sanctions could result. The value of CPF stock slid 3.57% to 27 baht a share, while Seafresh Industry Plc saw its share value drop 2.13% to 9.2 baht, and Thai Union Frozen Products (TUF) stock slipped 1.52% to 65 baht.
On the same day, Thiraphong Chansiri, president and chief executive officer of TUF, a major producer and exporter of frozen shrimp and canned tuna, issued the following statement:
“The Thai Union Group would like to restate that its ethical business sourcing policy prohibits any form of forced labor, child labor or exploitation of human rights, and it is working uncompromisingly to comply with international standards to prevent human rights violation of any kind. We have made it very clear [to suppliers] that any misconduct in relation to human trafficking will result in a suspension of our trade relationship, with no compromises.”
He continued: “We work with relevant stakeholders to ensure necessary actions are taken by creating constructive dialogue and cooperating on improving human rights practices throughout our supply and distribution chains. Thailand’s industry associations have been working extremely hard as a ‘Thailand Team’ to improve good labor practices in the fishing industry since 2010, and significant progress has been made.”
Chansiri’s comments followed a statement from the CP Group on June 10, which pointed out that fishmeal accounts for less than 10% of the feed used in its shrimp aquaculture operations. The company, which has five certified aquaculture feed mills in Thailand, reportedly sources fishmeal from 55 independent plants, of which 40 are certified as fully compliant under the Thai Department of Fisheries (DOF), Non-IUU (Illegal, Unreported and Unregulated) fishing program.
Meanwhile, TUF’s research and development department is working on a shrimp feed formula that will be much less dependent on fishmeal sourced from captured fisheries. By 2020, it anticipates that 100% of the shrimp feed it uses will be completely free of fish caught in the wild.
Replying to questions raised by Guardian reporters, Bob Miller, managing director of CP Foods’ United Kingdom operation, was quoted as saying: “We’re not here to defend what is going on. We know there are issues with regard to the [raw] material that comes in [to ports in Thailand], but to what extent that is, we just don’t have visibility.”
The truth of the matter is that CPF has been in the forefront of attempts to solve problems of illegal fishing and labor abuse. In fact, for more than a year it has been paying premium prices to purchase fishmeal, thus compensating producers for the higher costs associated with certifying their whole supply chain as non-IUU.
Adirek Sripratak, the company’s president and chief executive officer, said: “CPF has also engaged the IFFO, the world’s leading NGO in regards to fishmeal and fish oil, to audit and certify its seafood supply chain. In June of 2014, a CPF shrimp feed site will become the first feed mill in Asia to be certified IFFO RS Chain of Custody.”
In addition to exporting frozen cooked shrimp around the world, Charoen Pokphand offers a growing range of value-added ready meals sold under the CP Authentic Asia brand name and other labels. This King Prawn Wonton Soup with Noodles offering is one example.In a statement posted on the Charoen Pokphand Foods website (www.cpfworldwide.com), Sripratak said, in no uncertain terms: “CPF unequivocally denounces slavery and forced labor. Since April 2013, we have tried our best to actively audit our entire supply chain, and have stopped business with all vendors who were found to violate our corporate social responsibility and ethical policies. In addition, we have been working closely with the Thailand Department of Fisheries and eight Thai seafood and fishing associations to stop all use of illegal labor. CPF strictly complies with Thailand’s labor laws and international labor laws.”
The Thai government and its Department of Fisheries have been systematically battling against IUU fishing for a number of now. The effort has achieved measurable success, as detailed by Dr. Waraporn Prompoj, the DOF’s senior expert on international affairs, at a seminar held during the Seafood Expo Global gathering in Brussels last month.
Since 2012 the DOF has invested more than 33 million baht annually to implement and operate an import marine catch certification scheme and combat IUU activities. Furthermore, in the last five years the number of fishing vessels registered by the Thai government has more than tripled to over 49,000 out of 54,000 in service, thus facilitating far better monitoring of movement and employees. This number includes almost all of the large-scale boats.
“Once fishing boats enter foreign waters, they are no longer subject to Thai laws. We need help from our ASEAN neighbors to solve the problem,” says Dr. Poj Aramwattananont (far right), president of the Thai Frozen Foods Association. Fellow seminar panelists are (left to right) Bob Miller, managing director of CP Foods’ United Kingdom operation, and Dr. Waraporn Prompoj, senior expert on international affairs for the Thai government’s Department of Fisheries.
Looking ahead, government authorities are studying the feasibility of using GPS technology to precisely track vessels upon departure from fishing ports along Thai waters.
“However, once fishing boats enter foreign waters they are no longer subject to Thai laws,” pointed out Dr. Poj Aramwattananont, president of the Thai Frozen Foods Association, during the seminar in Brussels. “We need help from our ASEAN neighbors to solve the problem.”
With some 4,863 kilometers of land boundaries, guarding Thailand’s borders against unlawful intrusion from migrants seeking work is not easy, especially in porous mountainous regions and jungle areas.As for migrants from Southeast Asia streaming illegally into Thailand in search of work [it is estimated that millions have done so in recent years, as there is much need for outside labor in a nation with an unemployment rate of only 1%], there is no denying that, as is the case with governments in USA, Europe and elsewhere, the Thai authorities have been unable to completely secure porous national borders. Illegal entry by undocumented workers seeking jobs continues.
Furthermore, there are believed to be up to 200,000 illegal laborers on fishing boats. It is estimated that as many as 35,000 of them may be subject to abuse, either physically or by overwork, or by earning low pay or receiving no pay.
Commercial interests, government agencies and non-government organizations are now tackling all of these issues on multiple fronts.
“For the first time in history, the eight key Thai seafood and fishing associations signed a memorandum of understanding, in February of 2014, with an outline roadmap for the sustainable development of the Thai fisheries industry. The alleged ‘slave’ labor aspect will be positively addressed in this work,” said CPF President and CEO Sripratak. “The coalition has put forward a Fisheries Improvement Plan (FIP) for the Gulf of Thailand and the Andaman Sea, and is attempting to raise an initial US $500,000 to engage the Sustainable Fisheries Partnership (SFP) and the World Wildlife Fund (WWF), which are global NGO’s that have the skills and expertise to complete these studies. All of this is aimed at positively encouraging all stakeholders to jointly manage Thailand’s seafood industry in an ethical and sustainable manner.”
Ambassador to EU Comments
Nopadol Gunavibool, Thailand’s Ambassador to the European Union, addressed the issue of illegal, forced and trafficked labor in the fishing industry in an in depth article published in the May issue of EP Today, a monthly newspaper distributed among members of the European Parliament. Excerpts follow:
“Due to its economic strength and interconnectivity, Thailand has attracted both investors as well as workforce, both legal and illegal, from various countries of origin. They serve as an engine of growth for both Thai and regional economies. The various opportunities available in the Thai seafood industry have also allowed a great number of unskilled workers in the region to support themselves, as well as their families in their home countries through remittances.
“Since time immemorial, Thailand has always welcomed bona fide migrant workers, be they skilled or unskilled, whether from Europe or countries closer to home, viewing it as a way of sharing prosperity and economic development. However, not all stories of migration end happily, especially if they arrive in Thailand illegally, mostly through unscrupulous trafficking syndicates and individual brokers in their countries as well as in Thailand who are anxious to cash in on those migrant workers’ desperation to look for better livelihood.
“These trafficking syndicates and brokers often operate locally, with cross-border networks of their compatriots in Thailand and neighboring countries. Surely, international cooperation is a ‘must’ if this problem is to be stamped out. Thailand’s cooperation with other countries in addressing transnational organized crime, including human trafficking, has been facilitated by Thailand’s ratification of the UN Convention against Transnational Organized Crime (UNTOC) since October 17, 2013, and the Protocol to Prevent, Suppress and Punish Trafficking in Persons, especially Women and Children.
“Thailand has been working hard on domestic measures to minimize and prevent these unfortunate occurrences. The elimination of human trafficking has been a national priority since 2004. Since then, a number of national-level mechanisms have been established and implemented, including a national action plan based on the 5 Ps (Prosecution, Protection, Prevention, Policy and Mechanism, and Partnership) for human trafficking, closely overseen by a National Committee chaired by the Prime Minister, as well as the 2008 Anti-human Trafficking Act, which greatly extends the legal scope for the prosecution of human trafficking.
“I can attest to the seriousness of the Thai government and business community in improving fishing practices, as I have represented the Ministry of Foreign Affairs in the National Committee prior to my assignment in Brussels. Consequently, 225 defendants in human trafficking cases were convicted in 2013 under this law. More than 5.4 million euros have been annually earmarked for government activities under the National Action Plan. Government agencies are also enhancing coordination with each other and with both local and foreign NGOs on this issue. This result so far is rewarding, but more can still be done.”
IPO Meeting Statement
Meanwhile, the Thai delegation to last week’s meeting of the International Labor Organization (ILO) Governing Body in Geneva, Switzerland, released a statement reaffirming Thailand’s commitment to elimination of forced labor in the nation and clarifying its position regarding the vote on the new ILO instrument to supplement the Forced Labor Convention (No. 29) made on June 11.
Excerpts of the statement by Patana Bhandhufalk, labor attaché at Thailand Permanent Mission to the United Nations and other international organizations in Geneva, delivered to the 321st session of the ILO governing body, read as follows:
“Thai law provides all workers in Thailand with protection in relation to working conditions as well as related benefits regardless of nationality. This includes protection against forced labor. Nevertheless, to adopt any specific instrument, we have to seriously consider our own readiness to implement such an instrument, in conformity with the entire instrument’s context and the relevant Thai laws.
“At the vote on the new ILO instrument to supplement the Forced Labor Convention (No. 29), 1930, Thailand therefore did not vote in favor of the Protocol but voted in support of the Recommendation, as it could be promptly implemented and further developed through existing laws. However, given the importance of the issue, and our strong commitment to eliminate forced or compulsory labor, the Thai delegation has consulted further with our capital at the policy level, where upon we have decided to join the consensus in adopting the said Protocol, bearing in mind our need to proceed in accordance with our domestic requirements.” – JMS
