In recent years, the shrimp industry has come under scrutiny due to the challenging conditions faced by farmers amid the relentless pursuit of lower costs by major supermarkets. The story of Yulius Cahyonugroho, an Indonesian shrimp farmer, mirrors the struggles faced by many in this sector. Once operating over two dozen ponds, he's now down to just a few, as prices offered by buyers have plummeted.
Shrimp farmers like Yulius have seen their earnings slashed by half, forcing them to cut down on their workforce and, in some cases, barely break even. This scenario is not isolated to Indonesia; it's a trend that's sweeping across Vietnam and India as well. These countries provide a significant portion of shrimp to the major global markets, yet the push for cheaper wholesale prices is having devastating effects on the ground.
A detailed investigation reveals that as supermarkets in the West rack up profits, they're exerting pressure on suppliers to accept lower and lower prices. This often results in unpaid labor, extended working hours, and hazardous conditions for those at the lower end of the supply chain. The analysis pinpoints a sharp 20%-60% drop in earnings among shrimp producers from pre-pandemic levels, with the labor cost-cutting being a primary tactic to maintain profitability.
Moreover, uncovering these issues sheds light on the complex network within the shrimp industry, where middlemen play a crucial role. They often obscure the origins of the shrimp, bypassing ethical sourcing commitments made by many retailers. The situation calls for major buyers to uphold their promises of fair trade, ensuring that the trickle-down benefits of higher prices reach these hardworking producers.
However, changing this status quo isn’t straightforward, as it requires both policy intervention and a shift in buying practices. More oversight using existing frameworks could assist in establishing fairer prices while protecting the rights of shrimp workers and fostering a more sustainable industry. As consumers become more aware, the demand for ethically sourced products could provide the needed push for reform in how major supermarkets conduct their procurement processes.
In response, government bodies and international organizations have begun to engage with stakeholders to address these challenges. The EU's new directive on corporate responsibility is a positive step, but continuous vigilance and action are required to transform conditions substantively on the ground. A fairer supply chain not only benefits the workers but also ensures the integrity and sustainability of the entire shrimp industry.
