Takeaways from AP's report on how shrimp farmers are exploited as supermarkets push for low prices

BANGKOK (AP) — A new investigation focused on three of the world’s 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 regional analysis of the industry in Vietnam, Indonesia and India, which provide about half the shrimp in the world’s top four markets — the United States, European Union, United Kingdom and Japan — 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’s Sainsbury’s 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 — published separately as country-specific reports — supplemented with secondary data and interviews from Thailand, Bangladesh and Ecuador.

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 “dangerous and abusive conditions.” 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 “significant” 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’s 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.

Switzerland’s Co-op said it had a “zero tolerance” policy for labor law violations and that its producers “receive fair and market-driven prices.”

Germany’s 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.

“We are committed to fulfilling our responsibility to respect human rights,” Aldi said.

Sainsbury’s referred to a comment from the British Retail Consortium industry group, which said its members were committed to sourcing products at a “fair, sustainable price” and that the welfare of people and communities in supply chains is fundamental to their purchasing practices.

The Vietnam Association of Seafood Exporters and Producers issued a statement calling the allegations in the report “unfounded, misleading and detrimental to the reputation of Vietnam’s shrimp exports,” 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’ve 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,” the report says.

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 Katrin Nakamura of Sustainability Incubator, who wrote the regional report.

In July, the European Union adopted a new directive requiring companies to “identify and address adverse human rights and environmental impacts of their actions inside and outside Europe.”

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.

“Labor exploitation in shrimp aquaculture industries is not company, sector, or country-specific,” the report concludes. “Instead, it is the result of a hidden business model that exploits people for profit.”

This story was supported by funding from the Walton Family Foundation. The AP is solely responsible for all content.

Yulius Cahyonugroho poses for a photo at his shrimp farm in Kebumen, Central Java, Indonesia, Tuesday, Sept. 24, 2024. (AP Photo/Dita Alangkara)

Workers sort shrimps at a farm in Kebumen, Centra Java, Indonesia, Tuesday, Sept. 24, 2024. (AP Photo/Dita Alangkara)

Farm worker Dias Yudho Prihantoro, left, harvests shrimps at a farm in Kebumen, Central Java, Indonesia, Tuesday, Sept. 24, 2024. (AP Photo/Dita Alangkara)

Farm worker Andika Yudha Agusta feed shrimps at a shrimp farm in Kebumen, Central Java, Indonesia, Tuesday, Sept. 24, 2024. (AP Photo/Dita Alangkara)

Workers harvest shrimps at a farm in Kebumen, Central Java, Indonesia, Tuesday, Sept. 24, 2024. (AP Photo/Dita Alangkara)

WASHINGTON (AP) — President Joe Biden says he will visit Hurricane Helene-impacted areas this week as long as it does not disrupt rescue and recovery operations.

Biden was briefed again on Sunday evening about the impact of the devastating storm on an enormous swath of the Southeast. In a brief exchange with reporters, he described the impact of the storm as “stunning” and said that the administration is giving states “everything we have” to help with their response to the storm.

Biden planned to speak about the administration's response efforts in remarks from the White House on Monday.

The White House also said Vice President Kamala Harris will visit the storm-ravaged areas "as soon as it is possible without disrupting emergency response operations.” At a Las Vegas rally Sunday night, Harris spoke about the impact of Helene, saying, “I know everyone here sends their thoughts and prayer for the folks who have been so devastated by that hurricane.”

She added: “We will stand with these communities for as long as it takes and make sure they are able to rebuild.”

Harris was spending Sunday night in Las Vegas and had planned campaign stops in the city on Monday. But her office announced that she’d instead head back to Washington earlier than expected and will attend a briefing on the damage caused by Helene at the headquarters of the Federal Emergency Management Agency.

A North Carolina county that includes the mountain city of Asheville reported earlier Sunday that 30 people were killed due to the storm, pushing the overall death toll to at least 91 people across several states.

Biden on Sunday evening made calls to several state and local government officials in areas impacted by the hurricane, including Georgia Gov. Brian Kemp; North Carolina Gov. Roy Cooper; Valdosta, Georgia Mayor Scott Matheson; and Taylor County, Florida Emergency Management Director John Louk.

Biden told the officials the administration “will continue providing support to impacted communities — for as long as it takes," according to the White House.

Biden, who spent much of the weekend at his beach house in Delaware, has received frequent updates on the storm from FEMA administrator Deanne Criswell, homeland security adviser Liz Sherwood-Randall and other officials. Harris received similar briefings while on board Air Force Two, according to the White House.

The White House said Biden directed Criswell to figure out what can be done to accelerate support to isolated communities that are having difficulty accessing assistance.

Former President Donald Trump's campaign announced earlier Sunday he'll visit Valdosta, Georgia, on Monday to survey Helene’s impact on that state, one of several hotly contested battlegrounds that will be pivotal in the November presidential election.

Trump is expected to receive a briefing, facilitate the distribution of relief supplies and deliver remarks during the visit, according to his campaign.

President Joe Biden and first lady Jill Biden arrive on Air Force One at Joint Base Andrews, Md., Sunday, Sept. 29, 2024. (AP Photo/Manuel Balce Ceneta)