Exploitation of Shrimp Farmers in Southeast Asia

In recent years, shrimp farmers have reported a dramatic decline in their earnings, with some experiencing a 20% to 60% drop compared to pre-pandemic levels. This economic pressure compels farmers to cut costs, often resulting in unpaid labor and unsafe working conditions. For instance, Indonesian farmer Yulius Cahyonugroho has had to reduce his workforce and pond operations due to plummeting prices, pushing his family into financial insecurity. The investigation reveals that many shrimp workers, particularly women, endure long hours in poor conditions while receiving wages that frequently fall below minimum wage standards. The report highlights a troubling trend where the pursuit of lower prices by supermarkets not only affects the livelihoods of farmers but also perpetuates a cycle of exploitation throughout the supply chain.

Key Findings

• Declining Earnings: Shrimp producers have seen earnings decrease by 20% to 60% from pre-pandemic levels due to supermarkets’ demands for lower prices.
• Labor Conditions: Many workers face unpaid and underpaid labor, with some not even earning minimum wage. Reports of hazardous working conditions and child labor have been documented, particularly in India.
• Middlemen Influence: Farmers often sell their shrimp to middlemen who dictate prices, limiting their ability to earn fair compensation directly from factories or markets.
• Certification Challenges: Only a small fraction of shrimp farms are certified for ethical practices, making it difficult for supermarkets to ensure compliance with labor standards.

Responses and Recommendations

• Industry Accountability: The report calls for supermarkets to pay higher wholesale prices that would ensure fair compensation for farmers and workers throughout the supply chain.
• Policy Changes: U.S. policymakers are urged to utilize existing antitrust laws to promote fair pricing practices from retailers, rather than imposing punitive measures on suppliers for labor violations.
• Growing Awareness: There is increasing recognition of the exploitation within the shrimp industry, with initiatives like the European Union’s directive requiring companies to address human rights impacts in their supply chains.

This complex issue underscores the interconnectedness of global supply chains and the need for systemic changes to protect vulnerable workers in the shrimp farming industry.