Social Compliance in the Nut and Dried Fruit Industry

The concept of social compliance is moving into a wider scope and companies focus attention on their relationships with employees and their perspective on social responsibility. It is believed that another way of doing business is possible. The nut and dried fruit industry has taken major steps to eliminate unfair, dangerous and unethical labor practices in its supply chain, as well as to guarantee safe and hygienic working conditions. Brand reputation and stakeholder expectations might hang by a thread.  

Corporations are willing to demonstrate that they are compliant with internationally recognized labor standards in their business practices. The Ethical Trade Initiative Base Code (ETI), based on the ILO (International Labour Organization Norms), is a non-profit organization launched in 2004 that defines best practices in worldwide ethical trade. Companies in the supply chain are expected to share their information in the ETI audit using the SEDEX (Supplier Ethical Data Exchange) platform. Companies like Balsu Gida, Barry Callebaut Sourcing, Besana Group, Borges, Ferrero, Importaco SA, Intersnack Procurement, Kellogg Company, Lidl, Mars INC., METRO AG, Mondelez, MWT Foods, Nestle, The Hershey Company, Tesco or Whitworths Limited, to mention a few, are members of SEDEX.

Another example is the UTZ Certified label and program for sustainable farming practices, better working conditions and care for nature, which shows consumers that products have been sourced, from farm to shop shelf, in a sustainable manner.

Following this, not only third-party auditing certifies ethical practices. More and more companies establish on their DNA core values and internal programs and certifications, like Ferrero Hazelnut –the biggest buyer of Turkish hazelnuts. The company increased over the last decade quality and productivity of the hazelnut production with Ferrero Farming Values practices, a long-term project created with the aim of using 100% traceable hazelnuts. Furthermore, since 2013, Ferrero has been participating in a Public-Private Partnership with the European Association of Chocolate, Biscuit & Confectionery Industries (CAOBISCO) and the ILO on a project to eliminate the worst forms of child labor (WFCL) in seasonal agriculture in hazelnut harvesting in Turkey.

In this regard, since 2013, Balsu, one of the leading hazelnut processing companies in the world, has been running a social compliance program for Responsible Recruitment of Seasonal Agricultural Workers in Turkey. The program was created to improve working and living conditions with a focus on responsible recruitment practices of seasonal migrant agricultural workers who travel to hazelnut producing cities from the southeast and east of Turkey. This goes in parallel with the certification program in hazelnut farming, developed to increase productivity and quality.

Moreover, Nestlé, Olam and Balsu pilot-tested the United States Department of Agriculture Guidelines for Eliminating Child Labor and Forced Labor in Agricultural Supply Chains. The result? The numbers speak for themselves: 2,470 harvest workers reached, 509 children provided safe spaces, 287 farmers received training, and 256 community members attended trainings, among others.

Conducting business in an ethical, socially responsible and environmentally sustainable manner should be a must in every aspect of a business. As Olam exposes, upholding high standards of behavior is fundamental to their values and culture. In this regard, Olam’s Ethical Business Programme (EBP) looks to strengthen their ethical and compliance standards, and earn and maintain the trust of investors, customers, suppliers, employees, communities and other stakeholders. The program sets out standards and behaviors, which are detailed in the Olam Code of Conduct, as well as in their Fair Employment Policy, Anti-bribery and Corruption, and Supplier Code, among others.

Over the past decade, the retail industry has set very high and demanding standards of ethical sourcing, with a much stronger emphasis on supply chain transparency and sustainability, and standards that are being audited and assessed on a regular basis. Traceability of agricultural produce is still a challenge to the supply chains, particularly in developing countries, however, a number of solutions designed to improve traceability have arisen in recent years, like the Blockchain technology. Cooperation, dialogue and understanding are the key features to face the traceability challenges and to ensure the quality and safety of the products, and in this same sense, to detect child labor and modern slavery.  

Tesco’s Responsible Sourcing Programme is about buying and selling products responsibly, so that customers can know that everything they buy is produced under decent conditions and everyone involved is treated fairly. Monitoring the whole process is the key element to get the truth of what’s behind the product and with that, assessments of possible risks, understanding workers and identifying trends help ensure transparency across the supply chain.

What is more, companies like the Australian Woolworths Group reflect in their Responsible Sourcing Program that their expectations are not only on their suppliers, but also their suppliers’ suppliers. While their operations and supply chains are complex, the Group’s aim is to ensure that human rights issues are understood, respected and upheld. ‘We expect business partners to adhere to our ethical business conduct consistent with our own, and are committed to working with them to fulfil this common goal, and proactively address human rights’, as reflected on their Statements.

In relation to the issue with child labor in the Turkish hazelnut sector, according to the European Federation of the Trade in Dried Fruits and Edible Nuts (FRUCOM), at the recent EU EU-Turkey Hazelnuts Consultations meeting held in Istanbul, on October 18, Mr. Abdullah Ayaz, Director General of Migration Management, Ministry of Interior, stated that Turkey does not tolerate child labor and is serious about combatting it, having concluded an agreement with the ILO.

Nothing new to say that new technology and advanced machinery has irrupted in all industries and the nut and dried fruit sector is no exception.

The cashew industry embarked on mechanization years ago, not only to provide better working conditions to workers and to reduce costs, but also due to the non-availability of workers. India and Vietnam are a proof of it. The use of manual cracking has been almost completely eliminated. Besides, the cashew seeds are cooked, either in oil or by steaming, and then cracked by machines.

In mechanized shelling, less than 2% of raw cashew nuts have to be shelled manually –those cashews that machines are not able to shell– and, in most cases, this small number of manual workers are provided with safety gloves.