Supply Chains Issues and Sustainability Policies in South and Southeast Asia: Comparing Seafood, Tea

SUPPLY CHAINS ISSUES AND SUSTAINABILITY POLICIES IN SOUTH AND SOUTHEAST ASIA: COMPARING SEAFOOD, TEA, COFFEE, PALM OIL, AND RICE Submitted to Oxfam Asia Research Team:

Sarinee Achavanuntakul Siwat Auampradit Jakkrapong Kongklum Ponpakin Phruttiwongwanit Sunipa Ruamsap Itchaya Sengmee Thanagorn Loetnithat June 2023

Supply Chains Issues and Sustainability Policies in South And Southeast Asia

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Table of Contents Executive Summary

4

1. Seafood supply chain in Sri Lanka, Bangladesh, and Pakistan

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1.1 Key issues found in report 1.2 Major seafood companies in Sri Lanka and their sustainability policies 1.3 Major seafood companies in Pakistan and their sustainability policies 1.4 Major seafood companies in Bangladesh and their sustainability policies 1.5 Trade information

9 11 17 19 23

2. Fisheries supply chain in Indonesia

29

3. Tea Supply Chain in India, Nepal, Sri Lanka, and Bangladesh

39

3.1 Key issues found in the report 3.2 Major Tea companies in India and their sustainability policies 3.3 Major Tea companies in Sri Lanka and their sustainability policies 3.4 Major Tea companies in Nepal and their sustainability policies 3.5 Major Tea companies in Bangladesh and their sustainability policies 3.6 Trade information

42 44 49 53 55 57

4. Palm oil supply chain in Indonesia, Thailand, Philippines, and Vietnam

63

2.1 Key issues found in report 2.2 Major fishery companies in Indonesia and their sustainability policies 2.3 Trade information

4.1 Key issues found in report 4.2 Major palm oil companies in Indonesia and their sustainability policies 4.3 Major palm oil companies in Thailand and their sustainability policies 4.4 Major palm oil companies in Philippines and their sustainability policies

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Supply Chains Issues and Sustainability Policies in South And Southeast Asia

30 31 34

66 68 75 81

4.5 Major palm oil companies in Vietnam and their sustainability policies 4.6 Trade information

85 89

5. Coffee supply chain in Vietnam

95

5.1 Key issues found in report 5.2 Major coffee companies in Vietnam and their sustainability policies 5.3 Trade information

97 102 113

6. Rice supply chain in The Philippines, Thailand, and Vietnam

116

6.1 Key issues found in report 6.2 Major rice companies in Thailand and their sustainability policies 6.3 Major rice companies in the Philippines and their sustainability policies 6.4 Major rice companies in the Vietnam and their sustainability policies 6.5 Trade information

120 122 125 126 129

7. Findings and Recommendations

134

Bibliography

171

Supply Chains Issues and Sustainability Policies in South And Southeast Asia

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Acknowledgements This research, Supply Chains Issues and Sustainability Policies in South and Southeast Asia, would not have been possible without the support of Oxfam Novib under the ‘FAIR for ALL’ program and the Dutch Ministry of Foreign Affairs.

We extend our sincere gratitude to our partners Prakarsa and the South Asia Alliance for Poverty Eradication (SAAPE), whose foundational reports on palm oil, seafood, fisheries, tea, coffee, and rice provided critical insights for this synthesis.

Their in-depth documentation of corporate practices, community voices, and policy landscapes served as the cornerstone of our desk-based analysis.

Finally, we would like to express our appreciation to the Sal Forest research team for their analysis, data organization, and synthesis. Their dedication and commitment to highlighting human rights challenges in supply chains were vital to shaping the recommendations in this report.

Sal Forest Co., Ltd. May 2025

Executive Summary Despite being one of the world’s most important food production areas, many food supply chains in the South Asia and Southeast Asia regions remain mired in a wide range of unsustainable practices including human rights violations, gender discrimination, lack of bargaining power, and unfairly low wages. Compounding the problem is the fact that most workers in the food sectors are informal workers, who have little or no formal written contract and little or no access to government welfare programs.

Although some large companies in some supply chains have begun announcing sustainability policies including human rights and fair compensation, much challenge remains in this space globally.

For this report, Sal Forest Co. Ltd. (“the research team”) summarizes pertinent supply chain characteristics and key challenges highlighted in the Prakarsa (2022) and SAAPE (2022) reports of 16 food supply chains in South and Southeast Asia, encompassing palm oil, seafood, fisheries, tea, coffee, and rice. Then, the research team explored export data and disclosed sustainability policies of the top 5 exporting companies in each supply chain.

The report is written based solely on desk review of existing information online; this is the major limitation of this research.

From the comparison of export data and company-level information, the research team observes that there seems to be some correlation between sustainability disclosures of the top 5 companies in each supply chain, and their major export destinations: companies that export to OECD and/or EU countries tend to disclose more sustainability policies relative to companies that do not export to those countries, although there are exceptions such as rice supply chain in Vietnam.

We can order the supply chains where top 5 companies disclose the most sustainability policies, in the order of most to least disclosures, as follows:

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Supply Chains Issues and Sustainability Policies in South And Southeast Asia

Palm oil in Indonesia Palm oil in Thailand Palm oil in Vietnam Coffee in Vietnam Tea in India Tea in Sri Lanka Fisheries in Indonesia Palm oil in The Philippines Seafood in Sri Lanka Seafood in Bangladesh Rice in Thailand No disclosure: Seafood in Pakistan, Tea in Bangladesh, Tea in Nepal, Rice in Philippines, Rice in Vietnam Given the above information, the research team suggests that the research and advocacy of fairer practices in the food supply chain can be divided into 3 major categories, each requiring different focus and tactics as follows:

1. Global food supply chains where top companies announced policies.

For global food supply chains where top exporting companies already announced policies with regards to human rights and fair treatment of suppliers/smallholders in their supply chain, the emphasis for advocacy and research could be placed on the following issues: Conducting “gap analysis” between the company’s disclosed policies and actual practices in the supply chain, such as human rights risk/impact assessments in accordance with United Nations Guiding Principles on Business and Human Rights.

Assisting companies in better enforcement and monitoring of their human rights and fair practice policies ‘down the supply chain,’ while providing incentives and capacity building for smallholders/small suppliers in the supply chain.

Encouraging industry-wide knowledge sharing and public recognition and dissemination of “industry best practices.”

Supply Chains Issues and Sustainability Policies in South And Southeast Asia

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Encouraging top buyers in the importing countries to pay more for products of companies with relatively strong records of human rights protection and fair compensation, in order to spur more ‘race to the top’ competition.

Encouraging companies to provide supplier credit with favorable terms to smallholders/small suppliers in their supply chain.

2. Global food supply chains where top companies have not announced policies.

For global food supply chains where top exporting companies have not announced public commitments to human rights and fair treatment of suppliers/smallholders, despite exporting to OECD and/or EU countries, the emphasis for advocacy and research could be placed on the following issues: Exploring and showing the estimates of higher risks, higher costs, and lower competitiveness, that could result after the passage of more stringent international human rights-related laws, such as the upcoming Corporate Sustainability Due Diligence law from the European Council. The research and advocacy on this issue could be addressed at governments, not only the relevant private sector.

Encouraging top buyers in the importing countries to pay more for products of companies with relatively strong records of human rights protection and fair compensation, in order to spur more ‘race to the top’ competition.

Conducting more research on the impact of climate change on vulnerable population in the food supply chains (e.g. artisanal fishermen).

Conducting research on how climate change mitigation and climate change adaptation strategies could be part of business strategies for companies.

3. Cross-cutting issues in food supply chains

In addition to issues that are specific to different food supply chains, the research team identified several cross-cutting issues in the Prakarsa and SAAPE reports that seem to be prevalent in almost all food supply chains across different countries. These issues should be the focus of public policy advocacy in order to establish a level playing field across companies:

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Supply Chains Issues and Sustainability Policies in South And Southeast Asia

Uneven legal protection, including access to social security and other state-guaranteed welfare, for vulnerable groups including migrant laborers, day laborers, indigenous workers, and women workers.

Cultural norms that may impede equal employment, such as the fact that women are seen as ‘supplemental labor’ or ‘weak’ or ‘bad luck’ in some countries, thus relegating them to tasks that pay the least wages.

Legal impediments to human rights protection, such as the fact that women are not granted the legal right to own land in some countries, therefore they have very little bargaining power.

Supply Chains Issues and Sustainability Policies in South And Southeast Asia

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SEAFOOD SUPPLY CHAIN IN SRI LANKA, BANGLADESH, AND PAKISTAN 8I

Supply Chains Issues and Sustainability Policies in South And Southeast Asia

Seafood supply chain in Sri Lanka, Bangladesh, and Pakistan SAAPE (2022) uses the case of Bangladesh as a representative for the domestic seafood value chain in the region. The artisanal fishermen sell their products at the fishery ghat, fish landing station, or in landing points. For the fishermen who have large number of products, they sell their products to wholesale market. The seafood value chain for domestic and export markets is shown in Figure 1.

Figure 1 Seafood value chain in Bangladesh, Sri Lanka, and Pakistan Activity Harvest/Fishery

Market/Intermediaries

Distribution

Domestic Actor

Fishermen

Fishery Ghat Fish Landing Station

Processor (Domestic) Wholesaler

Retailer

Consumer

Retailer

Consumer

Export Processor (Import country)

Wholesaler

Source: SAAPE (2022)

1.1 Key issues found in report

The research team summarizes key issues from SAAPE’s report as follows.

Precarious Work in seafood value chain In every node of supply chain, workers, especially women workers, are exploited and abused.

Small-scale fishermen often suffer from extreme violation of legal and labor rights, such as gender discrimination, low wages, workplace violence, and child labor.

InBangladesh,shrimpcollectorsspend6-10hoursadayinlocalrivers.Theyruntherisk of being bitten by crocodiles and snakes. In addition, working in brackish river water for long periods of time may cause severe health and sanitary problems, such as Supply Chains Issues and Sustainability Policies in South And Southeast Asia

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waterborne disease, skin infections, urinary tract infections, diarrhea, cholera, and dysentery. Many collectors cannot access to medical facilities.

Small-scale fishermen fall into a vicious debt circle because they depend on loans to finance their fishing expeditions.

- In Pakistan, small-scale fishermen and workers rely on the informal credit system because they cannot access formal credit.

- In Bangladesh, poor fishermen who have no boats or nets work as a daily labor. They always take loan from boat owner or money lender with no formal contract. They remain tied with the boat to provide their labor in return for the loan for a certain period.

In this way, they lack the freedom to bargain for fair work conditions and wages.

Gender equality Women account for a substantial share of the workforce in the seafood sector, and various gender discriminations still exist. For example, women are restricted access to land, water and financial assistance.

- In Bangladesh, women are paid half compared to men for equal work. Men are more likely to be employed with higher average wages for grading, loading/unloading and freezing shrimp.

- In Pakistan, fishing is a mostly male dominated profession. Women are involved in cleaning and processing activities, which are considered unsuitable and dirty job for men. Women are paid the lowest wages. In addition, women that want to take an active fishing role face further challenges as most of the fishing quotas and licenses are traditionally reserved for men.

- In Sri Lanka, women on boats are considered bad luck, so they are discouraged from joining.

Environmental issues and climate change Impacts from climate change, such as increasing seawater temperature, increasing salinity in coastal areas, reduced water flow from major rivers, and extreme weather events, are affecting aquatic life and making the marine ecology more fragile.

In addition, the increase in population density has caused substantial damage to fish habitats.

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Supply Chains Issues and Sustainability Policies in South And Southeast Asia

Improving the status of workers and enhancing the value chain requires the effective integration of both national and international policies and programs. For example, a task force at the South Asian Association for Regional Co-operation (SAARC) level can formulate strategies to mitigate the impacts of climate change on the seafood sector in the region.

The Covid-19 pandemic has affected the value chain and exporters of seafood in South Asia. The supply chain was disrupted, causing a fall in prices and demand. The pandemic obstructed the transportation system regionally, leading to the cancellation of orders by importers and suppliers. Small-scale fishermen faced a substantial reduction in their income, and intermediaries and processors also reduced their employees.

1.2 Major seafood companies in Sri Lanka and their sustainability policies

To consider policies of major seafood companies in Sri Lanka, the research team search for top 10 companies in the industry by asset size or sales. However, there is no information found. Therefore, the research team explores other trusted information sources, such as government agencies’ research, as an alternative.

Then, we found the report Industry Capability Report: Sri Lankan Fisheries Sector, prepared by Export Development Board (EDB). The report shows 10 key players in Sri Lanka seafood export sector as follows (Export Development Board, Sri Lanka, 2022).

John Sea Foods Pvt Ltd Lihini Seafood Pvt Ltd Global Seafoods Pvt Ltd Ceylon Catch Pvt Ltd New Madu Nadee International Pvt Ltd Alpex Marine Pvt Ltd Jay Sea Foods Processing Pvt Ltd H & M Western Pvt Ltd V S Sea Food Pvt Ltd Blue Line Ocean Pvt Ltd Supply Chains Issues and Sustainability Policies in South And Southeast Asia

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Unfortunately, the report does not explain the criteria for determining these companies as key players. Thus, the research team randomly choose only 5 companies from the list above to consider their policies which are shown below.

John Seafood Pvt Ltd John Sea Foods has developed since 2011 and become one of the leading exporters of fish and seafood in Sri Lanka. The company offers a wide range of fish, fresh and frozen products (John Sea Foods, 2022). To explore the company’s policies related to human rights, labor rights, smallholders, and suppliers, the research team find that the company does not mention about human rights, labor rights, and smallholders in its policies.

The company publicly commits to support responsible sourcing and handling of fish at all stages by selecting business partners who guarantee to protect oceans and sustainability of fish. The company is also certified by Friend of the Sea and Dolphin Safe for sustainable sourcing (John Sea Foods, 2022). It can be noted that even though this policy mainly focuses on responsible sourcing, some standards such as Friend of the Sea require the company to comply with legal requirements including Illegal, Unreported and Unregulated Fishing (IUU Fishing) (Friend of the Sea, 2022).

Thus, it can be implied that the company should have monitoring system to monitor its suppliers and the company does not accept any illegal worker practices, such as forced labor.

Lihini Seafoods Pvt Ltd Lihini Seafoods is operated by Lihini Group of Companies that do business in processing and distributing high quality seafood products, especially for the international industry.

The company has capacity to produce 175 tons of final products per month. The company’s products are 100% traceability in which all product labels are printed in barcodes (Lihini Seafoods, 2022).

To consider the company’s policies, the research team find that the company does not refer to human rights and labor rights in its policies. However, the company explicitly states that it has established the network of its seafood supplier. The company commits

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Supply Chains Issues and Sustainability Policies in South And Southeast Asia

to buy products at the right price. Also, the company commits to support the community by allocating considerable amount from the profit margin of the company’s fishing vessels and share with community (Lihini Seafoods, 2022). It can be implied that the company has taken some care in improving livelihoods of artisanal fishermen, even it is not written as official company policy.

The company is certified by many standards, such as Sri Lankan Longline Fishery Improvement Project (FIP), Friend of the Sea, and Dolphin Safe (Lihini Seafoods, 2022). As stated above in John Seafood, some standards require the company to comply with legal requirements such as IUU Fishing. Thus, it can be implied that the company should have monitoring system to monitor its suppliers and the company does not accept any illegal worker practices, such as forced labor.

Jay Sea Foods Processing Pvt Ltd Jay Sea Foods Processing began its operation in 1995 by supplying fresh tuna to a company in the United Kingdom. Now the company supplies its products to many countries, such as United States, Canada, China, Japan, and many countries in Europe (Jay Sea Foods Processing, 2022).

The company publicly states on its website that the company has the ability to track products through all stages of production, processing and distribution. The company is certified by many food safety standards. Also, it is certified by Sri Lankan Longline Fishery Improvement Project (FIP), Friend of the Sea, and Dolphin Safe, as stated above (Jay Sea Foods Processing, 2022). Thus, it can be implied that the company should have monitoring system to monitor its suppliers and the company does not accept any illegal worker practices, such as forced labor.

Moreover, the company states that it is a member of SEDEX which is one of the world’s leading ethical trade membership organization, working with businesses to improve working conditions in global supply chains (Sedex, 2022). The company states that it complies to all SEDEX Members Ethical Trade Audit (SMETA). SMETA’s measurement criteria mention UN Guiding Principles on Business and Human Rights (UNGP) and other issues relevant to labor practices such as freedom of association, health and safety, child labor, discrimination (Sedex, 2019). Thus, it can be implied that Supply Chains Issues and Sustainability Policies in South And Southeast Asia

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the company should have human right practices, such as human right due diligence, through its own operation and its supply chain.

Alpex Marine Pvt Ltd Alpex Marine was awarded the exporter of the year 2002 by the national chamber of exporters of Sri Lanka. Specializing in supplying frozen and value-added crustacean seafood products, the company exports its product to Asian, European and United States (Alpex Marine, 2022).

The company’s policies mainly focus on the quality and safety of the products, such as Good Manufacturing Process (GMP), Hazard Analysis and Critical Control Points (HACCP), ISO22000 for food safety management system (Alpex Marine, 2022).

However, the research team do not find any policies relevant to human rights, labor rights, smallholders, and suppliers. The company’s website mention staff welfare provided by the company which includes free transport accommodation and subsidized meals, and all employees are provided with protective guards and safety equipment (Alpex Marine, 2022).

Blue Line Ocean Pvt Ltd Blue Line Ocean produces and distributes healthy seafood on the basis of sustainable management of resources (Blue Line Ocean, 2022). Its products are tuna fish, sword fish and reef fish. The company’s policies mainly focus on the quality and safety of the products. It is stated on the website that the company’s export products are packed in EU approved factories adhering supermarket standards. All the products are prepared according to the HACCP manual and steps, in the ISO 22000 certified fish processing factory (Blue Line Ocean, 2022).

The company shows the logo of Friend of the Sea on the website. The research team implies that the company comply with legal requirements such as IUU Fishing.

However, there is no relevant policies or other statements found on the website.

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Supply Chains Issues and Sustainability Policies in South And Southeast Asia

Table 1 Policies of top 5 seafood companies in Sri Lanka John Sea Foods

Lihini Seafoods

Human Rights

n.a.

n.a.

Labor

n.a.

n.a.

Smallholders

n.a.

To establish seafood supplier network (community) and allocate the profit margin to them.

Jay Sea Foods Processing The company states that it complies with all SEDEX Members Ethical Trade Audit (SMETA).

SMETA’s measurement criteria mention UN Guiding Principles on Business and Human Rights (UNGP) and other issues relevant to labor practices such as freedom of association, health and safety, child labor, discrimination. n.a.

Alpex Marine

Blue Line Ocean

n.a.

n.a.

On the website, there are staff welfare provided by the company which includes 1) free transport accommodation and subsidized meals 2) all employees are provided with protective guards and safety equipment

n.a.

n.a.

n.a.

Supply Chains Issues and Sustainability Policies in South And Southeast Asia

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John Sea Foods Suppliers

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Lihini Seafoods

The company is certified by many standards which require the company to comply with legal requirements such as IUU Fishing. it can be implied that the company should have The company monitoring is certified by system to many standards monitor its which require suppliers and the company the company does not to comply accept any with legal requirements illegal worker practices, such as IUU Fishing. it can such as forced be implied that labor. the company should have monitoring system to monitor its suppliers and the company does not accept any illegal worker practices, such as forced labor.

To commit to supporting responsible sourcing and handling of fish at all stages by selecting business partners who guarantee to protect oceans and sustainability of fish.

Supply Chains Issues and Sustainability Policies in South And Southeast Asia

Jay Sea Foods Processing The company is certified by many standards which require the company to comply with legal requirements such as IUU Fishing. it can be implied that the company should have monitoring system to monitor its suppliers and the company does not accept any illegal worker practices, such as forced labor.

Alpex Marine n.a.

Blue Line Ocean The company shows the logo of Friend of the Sea on its website.

This seems to suggest that the company is certified by this sustainable fisheries standard.

However, there is no relevant policies or other statements found on the website.

1.3 Major seafood companies in Pakistan and their sustainability policies

To consider policies of major seafood companies in Pakistan, the research team uses the data from Trade Map1 which provide trade statistics on imports and exports by product group and across 200 countries (International Trade Centre, 2022). Trade Map provides the list of Pakistan companies in fish and seafood sector. There are 48 companies in total, but only 10 companies that have the data on turnovers which are shown in table below.

Table 2 Pakistan companies in fish and seafood sector (sort by turnover) Company Name

Turnover (USD)

B.K Trading Co.

214,853,100

SAF Marine International

82,871,910

Blue & White Fisheries

18,415,980

Maritime Fisheries

14,792,206

Maxima International

8,287,191

SHAH NAWAZ & SONS

5,831,727

HILAL ENTERPRISES

3,990,129

GOLDEN STAR FISHERIES

1,870,450

S H TRADING CO

1,227,732

Zain Brothers Importers & Exporters - Zain Brothers

1,126,440

Source: trademap.org

The research team chooses top 5 companies, considering by turnover, from the list above to explore their policies as follows.

1 Trade Map is provided by International Trade Centre which is an organization aiming to bring prosperity, inclusiveness and sustainability to developing countries through trade-related development assistance.

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B.K Trading Co. B.K Trading Co. is processor, packer and exporter of fishes and fish products to China, Malaysia, Thailand, South Korea, and Singapore (B.K Trading Co., 2022). The company’s policies mainly focus on the quality of the products. It is stated on the website that the company’s management has been setup based on HACCP quality standard system (B.K Trading Co., 2022). The research team does not find any policies relevant to human rights, labor rights, smallholders, and suppliers on the company’s website.

SAF Marine International Established in 2009, SAF Marine International is processor, packer and exporter of fresh, frozen, live and salted seafood (SAF Marine International, 2022). Similar to B.K Trading Co. as stated above, the company’s policies mainly focus on the quality of the products. However, the company does not mention any international standards but only states that the company’s products are approved by Marine Fisheries Department, which is the Government body to control the Seafood industry in Pakistan (SAF Marine International, 2022). The research team does not find any policies relevant to human rights, labor rights, smallholders, and suppliers on the company’s website.

Blue & White Fisheries Blue & White Fisheries has been in seafood industry since 1990. The company provides fresh, frozen and live quality seafood (EC21, 2022). Unfortunately, the company’s website (http://www.blueandwhitefisheries.com) cannot be reached. The research team try to search information from other sources but there is no information found.

Maritime Fisheries Doing business more than 20 years, Maritime Fisheries is the processor, wholesaler and exporter of frozen and fresh seafood. The company also states that it is “one of the biggest exporter of varieties of frozen seafood and fresh water fish by air and sea to destination throughout the globe.” (Maritime Fisheries, 2022). Similar to B.K Trading Co. as stated above, the company’s policies mainly focus on the quality of the products. HACC quality standard is mentioned on the website. The research team does not find any policies relevant to human rights, labor rights, smallholders, and suppliers on the company’s website.

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Supply Chains Issues and Sustainability Policies in South And Southeast Asia

Maxima International Maxima International has been doing business in seafood export since 2001. The company started as a processing company and has expanded through mergers of three seafood export companies (Maxima International, 2022). The company’s policies also focus on the quality of the products (Maxima International, 2022). The research team does not find any policies relevant to human rights, labor rights, smallholders, and suppliers on the company’s website.

Table 3 Policies of top 5 seafood companies in Pakistan B.K Trading Co.

SAF Marine International

Blue & White Fisheries

Maritime Fisheries

Maxima International

Human Rights

n.a.

n.a.

n.a.

n.a.

n.a.

Labor

n.a.

n.a.

n.a.

n.a.

n.a.

Smallholders

n.a.

n.a.

n.a.

n.a.

n.a.

Suppliers

n.a.

n.a.

n.a.

n.a.

n.a.

Source: Respective company websites

1.4 Major seafood companies in Bangladesh and their sustainability policies

To consider policies of major seafood companies in Bangladesh, the research team search for top 10 companies in the industry by asset size or sales. However, there is no information found. The research team try to explore other trusted information source, such as government agencies’ research, as an alternative.

Then, we found the report Aquaculture Sector Study Bangladesh by Larvive International. The report shows top frozen finfish exporters of Bangladesh as follows (Larive International, 2021).

BD Seafood Seven Star Processing Virgo Fish & Agro Process Supply Chains Issues and Sustainability Policies in South And Southeast Asia

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Seven Oceans Group Anraj Fish Products Industries Mashud Fish Processing & Ice Complex However, the report does not explain the criteria for determining these companies as key players. Thus, the research team randomly choose only 5 companies from the list above to consider their policies which are shown below.

BD Seafood Beginning in 2007, BD Seafood Limited (a subsidiary of BD Group) is an exporter of fish and shrimp with its own processing plant designed and engineered with the direct supervision of European Experts (BD Seafood, 2022).

Besides the company’s policies focusing on the quality of the products, the company publicly states on the company’s website that the company “ensure fair prices for the shrimp farmers” and “engage with all stakeholders to improve the living standard of fishermen” (BD Seafood, 2022). This statement can be implied that the company has policy for smallholders.

Moreover, the company also states that the company has “world-class healthy working conditions and day-care facilities for the children of working mothers with a zero tolerance policy towards child labor” and “offers emergency medical treatment with 24-hours doctors (both male and female) on-site along with free medicine”.

Besides, the company states that 80% of its employees are women and the company “continuously strive for the welfare and benefits of females and under privileged sections of the society through effective employment generation” (BD Seafood, 2022).

These practices can be interpreted that the company concerns about labor rights.

Virgo Fish & Agro Process Virgo Fish & Agro Process produces a wide range of frozen fish and fishery products, including industry related products such as fish oil and fish meal (Virgo Fish & Agro Process, 2022). However, the research team does not find any policies relevant to human rights, labor rights, smallholders, and suppliers on the company’s website.

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Supply Chains Issues and Sustainability Policies in South And Southeast Asia

Seven Oceans Group Seven Oceans Group produces a wide range of products, such as white fish fillets of pangasius, sea bass, carps, fish oil and fish meal product, finely packed frozen seafood for local and international market. The company exports the products to many countries in Asia, such as China, Taiwan, Vietnam, Singapore (bd.top10place. com, 2022). The company’s policies mainly focus on the quality of the products. The company is certified by many standards such as HACCP, ISO, and USFDA quality system (Larive International, 2021). Unfortunately, the company’s website (7-oceans. com) cannot be reached. The research team try to search information from other sources but there is no information found.

Anraj Fish Products Industries Established in 1984, Anraj Fish Products Industries is a 100% export-oriented shrimps and fish processing plant. The company’s policies mainly focus on the quality of the products. The company states on the website that its operations comply with HACCP (Anraj Fish Products Industries, 2022). However, The research team does not find any policies relevant to human rights, labor rights, smallholders, and suppliers on the company’s website.

Mashud Fish Processing & Ice Complex Established in 2002, Mashud Fish Processing & Ice Complex, a subsidiary under Mashud Group, is a 100% export oriented company with the dedication of exporting wholesome, nourishing and affordable traditional and non-traditional fisheries products (Mashud Group, 2022). The company’s policies mainly focus on the quality of the products. The company states on the website that its operations comply with HACCP and USFDA. Although the research team does not find any policies relevant to human rights, labor rights, smallholders, and suppliers on the company’s website, we search the policies through Mashud Group which is parent company. Mashud Group’s mission clearly states that the Group “develop employees by encouraging empowerment and rewarding innovation” and “promote an environment for learning and personal growth” (Mashud Group, 2022). It can be interpreted that Mashud Group has procedures to develop Supply Chains Issues and Sustainability Policies in South And Southeast Asia

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its employees. Also, another mission is “to promote inclusive growth by encouraging and assisting our distributors and suppliers in improving efficiency” (Mashud Group, 2022). It can be implied that Mashud Group concerns about its suppliers.

Table 4 Policies of top 5 seafood companies in Bangladesh BD Seafood Human Rights Labor

Virgo Fish & Seven Oceans Agro Process Group

Mashud Fish Processing & Ice Complex

n.a.

n.a.

n.a.

n.a.

n.a.

To offer worldclass healthy working conditions and day-care facilities for the children of working mothers with a zero-tolerance policy towards child labor

n.a.

n.a.

n.a.

To develop employees by encouraging empowerment and rewarding innovation

To offer emergency medical treatment with 24-hours doctors (both male and female) on-site along with free medicine To strive for the welfare and benefits of females and underprivileged sections of the society through effective employment

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Anraj Fish Products Industries

Supply Chains Issues and Sustainability Policies in South And Southeast Asia

To promote an environment for learning and personal growth

BD Seafood Smallholders

To ensure fair prices for the shrimp farmers

Virgo Fish & Seven Oceans Agro Process Group

Anraj Fish Products Industries

Mashud Fish Processing & Ice Complex

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

To promote inclusive growth by encouraging and assisting its distributors and suppliers in improving efficiency

To engage with all stakeholders to improve the living standard of fishermen Suppliers

n.a.

Source: Respective company websites

1.5 Trade information The research team collected information regarding top major destinations of exports from top 5 companies mentioned in the previous section, as well as trade information regarding top export destinations overall for the whole country.

Information on top export destinations at both company level and country level can be found in the following tables.

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Table 5 Top countries that top 5 seafood companies in Sri Lanka, Bangladesh, and Pakistan export their products to Company

Export Destination

Source

Sri Lanka John Sea Foods

United States, and European markets

Lihini Seafoods

Italy, Germany, France, Netherland, https://www.lihiniseafood.com/about.

Switzerland, Spain, United States, Japan, html Australia, Russia and Ukraine

Jay Sea Foods Processing

Netherlands, United Kingdom, Germany, https://www.jayseafoods.com/who-weFrance, Italy, Spain, China, Japan, United are/ States, Canada, Russia, Ukraine and other Eastern European countries

Alpex Marine

Asian, European and United States

Blue Line Ocean

n.a.

https://www.dailynews.lk/2017/09/29/ business/129695/john-sea-food-winspresidential-exports-award

http://www.alpexmarine.com/

Bangladesh BD Seafood

n.a.

Virgo Fish & Agro Process

n.a.

Seven Oceans Group

China, Taiwan, Vietnam, Singapore, Laos https://bd.top10place.com/seven-oceansgroup-342649469.html

Anraj Fish Products Industries

United States, United Arab Emirates, https://www.anrajfish.com/companyAustralia, Canada, Germany, Italy, Quatar, profile/ Kuwait, Bahrain, Korea, India

Mashud Fish Processing & Ice Complex

EU, United States

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Supply Chains Issues and Sustainability Policies in South And Southeast Asia

http://mashudgroup.com/mashud-fishprocessing/#mf-about

Company

Export Destination

Source

Pakistan B.K Trading Co.

China, Malaysia, Thailand, Korea, and http://bktradingco.com.pk/about-us/ Singapore

SAF Marine International

China, South Korea, Malaysia, Indonesia, Japan, Thailand, Taiwan, United Arab Emirates, Hong Kong, Singapore, Kuwait, Russia, Dubai, United States, Saudi Arabia, Tunisia, Egypt, Mauritius

Blue & White Fisheries

n.a.

https://seafoodpakistan.com.pk/expertstaff/#:~:text=Exporting%20Countries, Tunisia%2C%20Egypt%2C%20Mauritius %20etc.

Maritime Fisheries n.a.

Maxima International Maxima International

Thailand, Malaysia, China, Indonesia, https://www.maximainternational.com.pk/ Canada, Kuwait, Vietnam, Japan, Korea, pagec3c9.html?id=8 Egypt, Philippines, Sri Lanka, Bangladesh

Source: Respective company websites

Table 6 Top 10 countries that imported seafood from Bangladesh, Pakistan, Sri Lanka in 2021 Market

Import Value (Thousand USD)

% of world import

Bangladesh2 United Kingdom

71,846

14.64

Netherlands

68,794

14.02

Belgium

56,905

11.59

Germany

55,200

11.25

United States of America

49,110

10.01

India

30,811

6.28 Supply Chains Issues and Sustainability Policies in South And Southeast Asia

I 25

Market

Import Value (Thousand USD)

% of world import

France

25,244

5.14

Hong Kong

23,899

4.87

Japan

19,424

3.96

Russian Federation

15,292

3.12

World

490,818

100.00

Pakistan3 China

153,513

36.61

Thailand

91,737

21.88

United Arab Emirates

28,208

6.73

Malaysia

19,252

4.59

Saudi Arabia

17,919

4.27

United States of America

17,843

4.26

Japan

14,033

3.35

Vietnam

13,232

3.16

Korea, Republic of

11,919

2.84

Kuwait

10,901

2.60

World

419,312

100.00

2 International Trade Centre. (2022). Compare Markets For product 03 – Fish and crustaceans, molluscs and other aquatic invertebrates

Exported from Bangladesh. Market Access Map. https://www.macmap.org/en/query/compare-market?reporter=All&partner=050&product =03

3 International Trade Centre. (2022). Compare Markets For product 03 – Fish and crustaceans, molluscs and other aquatic invertebrates Exported from Pakistan. Market Access Map. https://www.macmap.org/en/query/compare-market?reporter=All&partner=586&product=03

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Supply Chains Issues and Sustainability Policies in South And Southeast Asia

Market

Import Value (Thousand USD)

% of world import

Sri Lanka4 France

43,117

12.67

United States of America

38,226

11.23

Germany

38,167

11.21

Italy

37,753

11.09

Japan

22,437

6.59

Netherlands

21,000

6.17

Hong Kong

18,632

5.47

United Kingdom

17,858

5.25

Canada

13,450

3.95

Israel

11,027

3.24

World

340,343

100.00

Source: International Trade Centre (2022)

4 International Trade Centre. (2022). Compare Markets For product 03 – Fish and crustaceans, molluscs and other aquatic invertebrates

Exported from Sri Lanka. Market Access Map. https://www.macmap.org/en/query/compare-market?reporter=All&partner=144&product =03 Supply Chains Issues and Sustainability Policies in South And Southeast Asia

I 27

Top 10 countries import seafood from Bangladesh, Pakistan, Sri Lanka Russian 3.1% Japan 4%

United Kingdom

Others

15.1% 14.6% Netherlands

Hong Kong 4.9%

14%

France 5.1%

Belgium

India

11.6% Germany 10% 11.3%

6.3% USA

Bangladesh Kuwait Others Republic of Korea 2.6% 9.7% Vietnam 2.8% 3.2% Japan

3.4% USA 4.3% Saudi Arabia 4.3% 4.6% Malaysia

China

36.6%

Thailand

UAE

21.9%

6.7%

Pakistan France

Others

23.1%

12.7%

Israel 3.2% Canada 4%

USA

11.2% Germany

11.2%

5.3% Italy 5.5% Japan 11.1% Hong Kong 6.2% 6.6%

United Kingdom

Netherlands

28 I

Sri Lanka

Supply Chains Issues and Sustainability Policies in South And Southeast Asia

2

FISHERIES SUPPLY CHAIN IN INDONESIA Supply Chains Issues and Sustainability Policies in South And Southeast Asia

I 29

Fisheries supply chain in Indonesia Prakarsa (2022) uses the case of Rembang and Semarang, Indonesia (the capital of Central Java and the fishery region) as a representative for the fishery global value chain are shown in Figure 2.

Figure 2 Fisheries Indonesia value chain Activity Harvest/Fishery

Intermediaries

Distribution Domestic Processor

Actor

Fishermen For large and medium fishermen, are required to go through the fish auction place provided by the government

Middleman (Fish Auction Place)

Wholesaler

Consumer Retailer

Export (Regular by central government) Wholesaler

Processor

Exporter

Consumer

Source: PARKARSA (2022)

2.1 Key issues found in report Governance analysis of fisheries in Indonesia Although the Indonesian government has taken various steps to enhance the living standards of fishermen and boost investment in the fishery sector, the Indonesian fishing industry still has some weaknesses, as follows: - Fishermen use small boats and traditional equipment. Therefore, they cannot catch fish in deep water, resulting in lower catch volumes.

- Fishermen have minimal access to finance because banks are generally reluctant to extend credit to the fishery sector (statistics show that small fishermen often incur bad debts).

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Supply Chains Issues and Sustainability Policies in South And Southeast Asia

- There is a lack of infrastructure, technology, and equipment in the fishery sector in Indonesia.

- Low fish consumption in Indonesia contradicts the resulting production capacity. There is less purchasing power for fish in Indonesia.

Local Institutional Context From statistics, it was found that Indonesia employs fewer women than the world’s fishing industry. In Indonesia, women represent only 42% of the workforce in the fishery sector, which is less than the global level, where women represent nearly half of the workforce in fisheries.

The low acceptance of women into the fishing industry has a negative effect on the growth of Indonesia’s fishing industry because women play a crucial role throughout the fish value chain. They can provide labor in both commercial and artisanal fisheries.

From the report, it was found that women are involved in fishing, but people often do not recognize it. Women are involved in the pre-harvest, such as repairing nets, preparing food, and logistics before traveling, and during the post-harvest, such as handling fish, processing catches, and fish marketing.

Although Indonesian Law protects fishermen regardless of gender identity, in practice, the term “fisherman” tends to apply only to males. This is due to social and cultural norms that view women as housewives and men as breadwinners.

The value chain of the fishery in Rembang and Semarang can reflect injustice for all categories of fishers. In the context of employment in local institutions, workers and small fishers do not receive welfare guarantees in contracts, decent working hours, standard wages, and insurance.

2.2 Major fishery companies in Indonesia and their sustainability policies

To consider policies of major fishery companies in Indonesia, the research team uses the data from trademap.org which provide the list of Indonesia companies in fish and seafood sector. There are 66 companies in total, but only 18 companies that have the data on turnovers and the top 10 turnover data is shown in the table below.

Supply Chains Issues and Sustainability Policies in South And Southeast Asia

I 31

Table 7 Indonesia companies in fishery sector (sort by turnover) Company Name

Turnover (USD)

Pt. Perusahaan Perdagangan Indonesia (Persero) Indonesia Trading Company (PPI)

96,182,536

PT. DHARMA NIAGA (business unit of PPI)

94,246,200

PT. KIRANA FOOD INTERNATIONAL

37,409,000

PT. NAILI OCEAN

24,554,640

HASIL MELIMPAH, PT

18,415,980

SURYA MAS, Cv - Sm

15,707,700

PT. SARI HARTA SAMUDRA

13,198,119

GILONTAS INDONESIA, PT

12,028,560

Satya Trinadi Komira Perkasa, Pt - Komira, Pt

9,207,990

SURYA ALAM TUNGGAL, PT

9,000,000

Source: trademap.org

The research team chooses top 5 companies, considering by turnover, from the list to explore their policies as follows.

Pt. Perusahaan Perdagangan Indonesia (Persero) Indonesia Trading Company (PPI) Pt. Perusahaan Perdagangan Indonesia (Persero) is a trading and logistics company that focuses on the food ecosystem transformation process including the fishery sector. And the company has subsidiaries, including: PT Tjipta Niaga (Persero), PT Dharma Niaga (Persero), which is the second in rank, and PT Pantja Niaga (Persero).

Perusahaan Perdagangan Indonesia runs its business in the fields of agriculture, fisheries, processing industry, and wholesale trade (Perusahan Perdagangan Indonesia, 2022). The research team did not find any policies relevant to human rights, smallholders, or suppliers on the company’s website. However, the research team

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Supply Chains Issues and Sustainability Policies in South And Southeast Asia

found information about labor rights policy in the company’s missions that focus on the development of workers’ potential (Perusahan Perdagangan Indonesia, 2022).

PT. KIRANA FOOD INTERNATIONAL KIRANA produces a variety of seafood, such as fish and cephalopods, from the seas of Indonesia and the seas around the world. The company’s core business is to provide quality products and satisfy customers. KIRANA is under the management of the KELOLA Group, which is trusted to produce and process fishing products. The company has received operating standards from several certifications, such as Hazard Analysis and Critical Control Point System (HACCP), The British Retail Consortium (BRC), ISO 22000, and Marine Stewardship Council (MSC) (KIRANA, 2022).

The company’s commitment to maintaining the sustainability of fish resources in a sustainable manner. As a result, the company is concerned with preventing, blocking, and removing Illegal, Unreported, and Unregulated (IUU) Fishing. And it also provides transparency throughout the supply chain (KELOLA Group, 2022). But the research team couldn’t find details of the review process and no other relevant policies can be found on the website.

PT. NAILI OCEAN NAILI OCEAN is a fishery company from Indonesia. The company’s products include spanish mackerel, black pomfret, loligo squid, skipjack tuna, and other diverse fishery products. The company operates with a focus on product quality, with standards controlling its implementation at all stages, but unfortunately, the research team did not find any data on such standards. Since the company pays attention to the quality of its products, it has a process for managing vessels and employees to be able to produce quality products for customers (NAILI OCEAN, 2022). So the company’s missions focus on training employees to have the potential to work (NAILI OCEAN, 2022). However, the research team does not find any policies relevant to human rights, smallholders, or suppliers on the company’s website.

HASIL MELIMPAH, PT HASIL MELIMPAH is one of the fishing companies list of the Directorate General for Product Competitiveness, Ministry of Marine Affairs and Fisheries of The Republic of Supply Chains Issues and Sustainability Policies in South And Southeast Asia

I 33

Indonesia. And the company’s products include tuna, pelagic fish, and cephalopods (Directorate General for Product Competitiveness, Ministry of Marine Affairs and Fisheries of The Republic of Indonesia, 2022). However, the research team did not find the company’s website or its policy information.

SURYA MAS, Cv - Sm5 SURYA MAS was established in 1986 as an international trading company. The company operates with a focus on the sustainability of its products, which are traded in fisheries and agriculture, with most of its trading partners located in Asia, America, and Europe. The company was founded under the core principle that it must help local and small businesses thrive in the international market. In addition, in terms of suppliers, the company also has measures in place to control the products to ensure that the products are of the highest quality. According to international maritime and agricultural policy (C.V. SURYA MAS, 2022). Unfortunately, the research team did not find details of such a policy or any other policies relevant to human rights and labor rights on the company’s website.

2.3 Trade information

The research team collected information regarding top major destinations of exports from top 5 companies mentioned in the previous section, as well as trade information regarding top export destinations overall for the whole country.

Information on top export destinations at both company level and country level can be found in the following tables.

5 Since the company ranked 5th, the research team did not find the company’s detailed information, so the research team further studied the company data in the 6th place.

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Supply Chains Issues and Sustainability Policies in South And Southeast Asia

Table 8 Top 5 fisheries companies in Indonesia Pt. Perusahaan Perdagangan Indonesia PT. KIRANA (Persero) FOOD Indonesia Trading INTERNATIONAL Company/ PT. DHARMA NIAGA

Human Rights Labor

Smallholders

PT. NAILI OCEAN

HASIL MELIMPAH, PT

SURYA MAS, Cv - Sm

n.a.

n.a.

n.a.

n.a.

n.a.

One of the missions of PPI is to increase the productivity, expertise, and quality of human resource performance through the development of employee capabilities and competencies.

n.a.

One of the missions of NAILI OCEAN is to have highly trained employees maintain product quality.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

The company was founded on the principle to help local companies and SMEs to be more competitive in this growing international market.

Supply Chains Issues and Sustainability Policies in South And Southeast Asia

I 35

Pt. Perusahaan Perdagangan Indonesia PT. KIRANA (Persero) FOOD Indonesia Trading INTERNATIONAL Company/ PT. DHARMA NIAGA

Suppliers

n.a.

The company is concerned with preventing, blocking, and removing Illegal, Unreported, and Unregulated (IUU) Fishing.

It can be implied that the company should have a monitoring system to monitor its suppliers, and the company does not accept any illegal worker practices, such as forced labor.

In line with the company's traceability process throughout the supply chain.

The company provides transparent and comprehensive information regarding traceability – from the sea to the plate.

Source: Respective company websites

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Supply Chains Issues and Sustainability Policies in South And Southeast Asia

PT. NAILI OCEAN

HASIL MELIMPAH, PT

SURYA MAS, Cv - Sm

n.a.

n.a.

The company has standards for quality control of products from suppliers, with commercial operations in accordance with the international policy in the marine and agricultural environment.

Table 9 Top countries that top fishery companies in Indonesia export their products to Company

Export destination

Pt. Perusahaan Perdagangan Indonesia (Persero) Indonesia Trading Company (PPI)

n.a.

PT. DHARMA NIAGA (business unit of PPI)

n.a.

Source

PT. KIRANA FOOD Belgium, India, China, and Thailand INTERNATIONAL

https://www.volza.com/company-profile/ pt-kirana-food-528563/

PT. NAILI OCEAN

China (The research team found data on https://www.volza.com/company-profile/ only one export destination country.) naili-ocean-33287962/

HASIL MELIMPAH, PT

Japan (The research team found data https://eximtradedata.com/globalon only one export destination country.) companies/indonesia/pt-hasil-melimpah

SURYA MAS, Cv - Sm

Netherlands, India, and Pakistan

https://eximtradedata.com/globalcompanies/indonesia/cv-surya-mas

Source: Respective websites

Table 10 Top 10 countries that imported fisheries from Indonesia in 20216 Market

Import Value (Thousand USD)

% of world import

China United States of America Hong Kong Japan Singapore Vietnam Germany United Kingdom Netherlands Australia World

19,124 10,987 10,807 5,798 4,393 2,614 2,401 2,028 1,910 1,659 76,958

24.85 14.28 14.04 7.53 5.71 3.40 3.12 2.64 2.48 2.16 100.00

Source: International Trade Centre (2022)

6 International Trade Centre (ITC). (2022). Trade Map. List of Importing Markets for a Product Exported by Indonesia (Product: 0301 Live Fish). https://www.trademap.org/ Country_SelProductCountry_TS.aspx?nvpm=1%7c360%7c%7c%7c%7c0301%7c%7c%7c4%7c1%7c1%7c2%7c2%7c1%7c2%7c1%7c1%7c1 Supply Chains Issues and Sustainability Policies in South And Southeast Asia

I 37

Table 10 Top 10 countries that imported fisheries from Indonesia in 20216

Others

China

19.8% 24.9% 2.2%

Australia Netherlands 2.5% United Kingdom 2.6% Germany Vietnam

Singapore

38 I

USA

3.1% 3.4%

5.7% Japan

14.3% Hong Kong

7.5% 14%

Supply Chains Issues and Sustainability Policies in South And Southeast Asia

3

TEA SUPPLY CHAIN IN INDIA, NEPAL, SRI LANKA, AND BANGLADESH Supply Chains Issues and Sustainability Policies in South And Southeast Asia

I 39

Tea Supply Chain in India, Nepal, Sri Lanka, and Bangladesh Tea is the second most consumed and popular beverage after water. In 2016, demand for made tea was 5.5 million tons. There are more than 35 countries that are considered tea producers, and South Asia is one of the key players in the international tea industry with India, Sri Lanka, Nepal, and Bangladesh leading the production in the region. SAAPE (2022) uses the cases of India, Nepal, Sri Lanka, and Bangladesh as a representative for the tea supply chain.

India, Nepal, Sri Lanka, and Bangladesh tea supply chains

The major participants in the tea production process are tea estates, smallholder farmers, brokers, bidders, blenders, wholesalers, and retailers. Tea estates and smallholder farmers grow tea leaves and they are generally handpicked. The plucking process will be completed in different rounds, with each round happening at an interval of around seven days, and the quality of tea depends on the harvesting season. As mentioned, every tea leaf are handpicked, so the workers are the essence of the value chain. The compensation for the workers is too little. The tea leaves produced by smallholder farmers reach the processing factories either directly or through a collector or cooperative group. The made tea will be sent to the auction market which is present in India, Sri Lanka, and Bangladesh but absent in Nepal, so exporters and intermediary companies can bid and buy the bulk tea or alternatively sent to the intermediary companies who blend and sell it by themselves. The export process adds value to the product via blending, flavoring, packaging activities, and branding processes.

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Supply Chains Issues and Sustainability Policies in South And Southeast Asia

Figure 3 The tea value chain in India, Nepal, Sri Lanka and Bangladesh Activity

Plantation

Processing

Market/Intermediaries

Distribution Domestic

Actor

Smallholder Farmers

Small-Scale

Processing Factories

Local Dealers

Domestic Consumer

Brokers

Export Exporter

Tea Estates

Big-Scale

Foreign Buyers

Auction Market

Source: SAAPE (2022)

Current situations in Each country India In 2019, India was the second largest tea producer in the world with a production of 1,340 million kilograms which is consumed around 80% domestically. The tea sector employs around 1.12 million Indian workers which 40% of them are women. The daily wage for tea plantation workers in India is between 2.61 to 2.65 USD per day which is below the daily wage offered by national rural unemployment welfare scheme (The Mahatma Gandhi National Rural Employment Guarantee Scheme).

Nepal 98.8% of tea producers in Nepal are smallholder farmers while only 1.2% are large tea estates. But estate plantations are spread over 7,060 hectares while smallholder plantations are 9,845 hectares. The tea sector in Nepal employs around 40,000 workers which 40% of them are female. Moreover, women accounted for 75% of person-days in temporary employment in the tea sector in Nepal.

Supply Chains Issues and Sustainability Policies in South And Southeast Asia

I 41

Sri Lanka Sri Lanka is the fourth largest tea producer in the world and contributes to 6.5% of global production after the People’s Republic of China (40.5%), India (23.3%), and Kenya (8.6%). 75% of the tea produced in Sri Lanka are from smallholdings. Sri Lanka earned over one billion dollars by exporting tea and employed around 150,000 workers, of which most are female. Permanent workers have been replaced by temporary workers; the number of permanent workers was 458,617 in 1985 and dropped by 58 percent to 207,235 in 2011.

Bangladesh Annual report of the Bangladesh Tea Board for 2017-2018 shows that there are 444,743 workers in 159 tea gardens across the country. Around half of workers in the tea sector are female. Daily wage for tea plantation workers is 1.34 to 1.38 USD which is much lower than minimum wage in rural areas (7.11 USD).

3.1 Key issues found in the report

The research team summarizes key issues from SAAPE’s report as follows.

Fair wage for tea plantation workers The minimum wage set by governments is inadequate to provide for the nutrition, clothing, health, and education of family workers. The biannual raises are too small to offset the annual inflation, which means that their real wages are decreasing over the years.

Moreover, tea plantation workers in South Asia usually get paid lower than the minimum wage in their country, especially for workers in smallholder plantations where the minimum wage is not guaranteed, and social security provisions are not included.

While quantities of tea are branded and sold at a premium price, the workers are still paid same wages as lower-priced tea, even though premium tea requires more careful plucking.

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Supply Chains Issues and Sustainability Policies in South And Southeast Asia

Informal nature of labor and the limited reach of social security and welfare Provident funds and gratuity cover only permanent workers, which are a very small share of the workforce in the tea sector. Currently, most of the tea plantation workers are not permanent workers.

Tea estates are avoiding their responsibility by hiring seasonal and irregular workers to reduce costs from paying provident funds, health insurance, and accommodation maintenance expenses.

Women Workers: Discrimination at Work Women account for half of total tea plantation workforce, but the plantation is not women-friendly. Women are bound to carry heavy loads of tea leaves even during pregnancy and post-maternity.

They struggle with hygiene-related issues during menstruation, maternity, and childcare. Only around 19% of the tea gardens arrange daycare, despite having a female-dominated labor force.

Nutrition during pregnancy and post-maternity is inadequate, causing the children born to suffer from malnutrition and stunting.

Equal wages are provided to both male and female workers. However, women are discriminated against in the career path as they are rarely seen in supervisory positions.

Poor Working Conditions The working conditions in tea estates are not favorable for tea plantation workers, with problems such as bee attacks or leech bites, which are common and have caused several deaths.

Accommodation facilities are in dilapidated condition, which means that the workers must maintain the old houses at their own expense.

Tea plantation workers work more than eight hours a day with little access to resting places and washing facilities.

Safety concerns are neglected, as the workers are not provided with safety tools, especially when they spray chemicals. Even when safety gear is provided, the workers are not aware of the harmful effects of chemicals and are reluctant to use them.

Supply Chains Issues and Sustainability Policies in South And Southeast Asia

I 43

Fair price for farmers Smallholder tea farmers do not get fair prices for green leaves. The local government tried to implement a minimum support pricing to help smallholders, but its implementation has not been effective.

Smallholders have to pay a great deal to brokers to sell the tea they produce because of their lack of access to the market. Therefore, many smallholders form cooperatives to bargain for better prices for green leaves and remove intermediaries by contacting, selling, or processing tea leaves themselves.

The transparency in the cooperative model is an advantage for the farmers because the price of green leaves, salary expenses, operational expenses, and booked profits are published, which brings trust and confidence among farmers.

3.2 Major Tea companies in India and their sustainability policies

To consider policies of major tea companies in India, the research team use the list of top manufacturing companies provided by two market research companies. The first market research company, IMARC Group, provided the name of seven companies as listed in Table 11. The second market research company, EMR, listed six companies as the key player of tea industry in India as shown in Table 11. The research team chooses 5 companies that are in common between two market research companies listed as top 5 tea companies in India.

Table 11 The name of top companies listed by market research companies Company

IMARC

EMR

Website

Amar Tea Pvt. Ltd.

yes

yes

Duncans Industries Limited

yes

no

Hindustan Unilever Limited

yes

yes

https://societytea.com/pages/about-us http://www.duncans-tea.com/index1. htm https://www.hul.co.in/

Organic India Private Limited

yes

yes

https://www.organicindia.com/

Pataka Group of Companies

yes

no

http://www.patakagroup.com/

Tata Consumer Products

yes

yes

https://www.tataconsumer.com/

Wagh Bakri Tea Group

yes

yes

https://www.waghbakritea.com/

G.M. Tea Packers Pvt. Ltd.

no

yes

https://www.tulsiteaindia.com/

Source: IMARC and EMR

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Supply Chains Issues and Sustainability Policies in South And Southeast Asia

As mentioned above, The research team picked top 5 companies as representative of major tea companies in India by picking the companies named in both market research companies list to explore their policies as follows.

Amar Tea Pvt. Ltd. Amar Tea has been developed since 1915 as a tea export and wholesale company in Mumbai. Amar Tea focuses on blending and packaging methods by using fully automated operations in its manufacturing process. At present, they expanded their market to United State by having 45 stores in 16 states. They also visit each vendor to understand the type of teas which matches customer demand but there is no policy stated on the website about vendor visiting (Society Tea, 2022). The research team does not find any policies relevant to human rights, labor rights, smallholders, and suppliers on the company’s website.

Hindustan Unilever Limited Hindustan Unilever Limited (HUL) is one of the largest consumer goods companies in India. They claim that nine out of ten Indian household use one or more of their products. Moreover, they are also the leading tea manufacturer company in India (HUL, 2022). Some of the best-known tea brands of Hindustan Unilever are Lipton, Brooke Bond-Taaza, Brooke Bond- Red Label and Taj Mahal (IMARC, 2021).

In term of human right policy, HUL has implemented the UN Guiding Principles on Business and Human Rights (UNGP) throughout its operations, which covers only the company but include all area of the business. (HUL , 2022) They also released human rights report in 2015. For labor rights policy, they are driving equity, diversity, and inclusion. The company also committed to improving ‘Fair Wage’ to ‘Living wage’ and enhances training to women and disabilities people to expand opportunities for them. (HUL, 2022) In the supply chain, they try to improve livelihood of smallholders, promote safety place for women and improve living standard for suppliers. To achieve the goals, they are enhancing access to training for smallholders and use the Responsible Sourcing Policy (RSP) as mandatory requirement to ensure the improvement and mitigate risks.

(HUL , 2022) Supply Chains Issues and Sustainability Policies in South And Southeast Asia

I 45

Organic India Private Limited Organic India company produces organic tea, packaged food, body care, fresh fruits and vegetables. They aim to provide a positive impact to the world by generating sustainable agriculture and fair-trade practice to smallholders. The company also supports smallholders with equitable wages, health care, and ongoing organic agricultural training. Organic India receives HACCP, GMP, ISO 9001-2015 and Kosher organic certifications. (Organic India, 2022) Organic India have whistleblower policy, The Prevention of Sexual Harassment policy and CSR policy on their website but the sites cannot be reached. However, we found that the company is committed to support the livelihood and well-being of farmers and tribal wildcrafters across rural India. (Organic India, 2022) Tata Consumer Products Tata Consumer Products is a consumer product brand including tea products. For tea products, the company operates in every process which is planting, processing, blending and value-adding. Its tea brands include Tata Tea Premium, Tata Tea Gold, Tata Tea Life, Tata Tea Agni, Tata Tea Chakra Gold, Tata Tea Kannan Devan and Tata Tea Gemini. Nowadays, they are operating in over 40 countries in India, Europe, Canada, Australia and the United States.

Tata consumer valued the human right policy the most. They have the Business and Human Rights policy that is aligned with UNGP and ILO principles. (TaTa Consumer Product, 2022) To make sure of human right management, they set up human rights commitment and adopt human rights due diligence policy. They also value diversity and inclusion to improve their workplace. (Tata Consumer Products, 2022) They also released a gender pay gap report to track equity improvement every year. For their suppliers, they have the code of conduct requirements to mitigate the risk from human rights, workplace issues and labor rights. (TaTa Consumer Product, 2022) Wagh Bakri Tea Group Wagh Bakri has developed since 1892 as a premium tea company in India. They handle over 40 million kilograms of tea distribution. The company exports tea products to over 40 countries in North America, Europe, Africa and Asia. (Wagh Bakri Tea Group, 2022) Even though Wagh Bakri has a CSR policy that mentioned health care, women

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Supply Chains Issues and Sustainability Policies in South And Southeast Asia

empowerment, promoting education, environment eradication hunger and vocational training, there are no clear policies to achieve the target (Wagh Bakri Tea Group, 2022). Moreover, there is no information that is relevant to human rights, labor rights, smallholders, and suppliers on the website.

Table 12 Policies of top 5 tea companies in India Amar Tea Pvt. Ltd. Human Rights

n.a.

Hindustan Unilever Limited

Organic India Private Limited

Tata Consumer Products

The company are working to provide fair wage, safer workplace and inclusive world.

n.a.

The Business and Human Rights policy is aligned with UNGP, and ILO principles.

The company has implemented the UNGP throughout their operation.

The code of conduct is also aligned with United Nations Global Compact (UNGC) and the International Labor Organization (ILO) principles.

Wagh Bakri Tea Group n.a.

The company has released Modern Slavery Statement every year since 2015 To do human rights due diligence to identify gaps and implement management plan in their operation.

Set up Business and Human Rights Committee

Supply Chains Issues and Sustainability Policies in South And Southeast Asia

I 47

Amar Tea Pvt. Ltd. Labor

n.a.

Hindustan Unilever Limited

Organic India Private Limited

Tata Consumer Products

To promote equity, diversity and inclusion.

n.a.

The company promotes diversity and inclusion as the main goals for labor capital improvement.

All the workers are free to join trade unions and bargain.

Smallholders

n.a.

To enhance To support access to training the livelihood for smallholders and well-being of farmers and tribal wildcrafters across rural India.

Suppliers

n.a.

The company committed to improve compensation for supplier from "Fair Wage" to "Living Wage".

Source: Respective company websites

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Supply Chains Issues and Sustainability Policies in South And Southeast Asia

n.a.

Release annual gender pay gap report.

The company also provide access to both physical and mental health support and focus on preventive measures.

The company use the Responsible Sourcing Policy (RSP) as a mandatory requirement to mitigate risks

Wagh Bakri Tea Group

n.a.

n.a.

The company stated human rights, workplace and labor standards requirements in the suppliers code of conduct.

In their code of conduct, the company also establishes anti-corruption, environment, and personal data protection requirements.

n.a.

3.3 Major Tea companies in Sri Lanka and their sustainability policies

To consider policies of major tea companies in Sri Lanka, the research team searched for top 10 companies in the industry by asset size or sales. However, there is no information found. The research team tried to explore other trusted information sources, such as government agencies’ websites, as an alternative.

The research team found relevant information on the Export Development Board (EDB) website. EDB mentioned 2 major tea exporters and 8 highlight companies on their website. (Sri Lanka Export Development Board, 2022) Therefore, we use 10 companies highlighted on the website as representatives of key players in the tea industry in Sri Lanka.

AKBAR BROTHERS PVT LTD (Major tea exporter) EMPIRE TEAS PVT LTD (Major tea exporter) DILMAH CEYLON TEA COMPANY PLC INTER TEA PVT LTD UNIWORLD TEAS PVT LTD HERITAGE TEAS PVT LTD MABROC TEAS PVT LTD JAFFERJEE BROTHERS VAN REES CEYLON LTD ANVERALLY & SONS PVT LTD Thus, the research team randomly chose only 5 companies from the list above to consider their policies which are shown below.

AKBAR BROTHERS PVT LTD Akbar is the largest tea exporter in Sri Lanka since 1992 and they are the world’s largest exporter of Ceylon tea. They produce Ceylon tea with automated manufacturing to minimize human contact and export to Middle East Asia, Australia, Europe, North America, Japan, Russia, United Kingdom and other countries Now, they are expanded their business to many sectors such as Renewable Energy, Healthcare, Packaging, Property Development and Environmental Services. (Akbar Premium Quality Tea, Supply Chains Issues and Sustainability Policies in South And Southeast Asia

I 49

2022) The research team does not find any policies relevant to human rights, labor rights, smallholders, and suppliers on the company’s website.

EMPIRE TEAS PVT LTD Empire tea developed in 1936 and become the second-largest Ceylon tea exporter in Sri Lanka in 2000. They distributed 14 million kilograms of tea to over 60 countries and almost half of them were exported to Russia. They certified an ISO 22000:2005, ISO 9001:2000, BRC, HACCP, Organic, Fair-Trade, and Halal Products certificate.

(Empire Teas, 2022) The company stated that they focus on environment, society, and economy in their CSR policy. However, All the CSR projects they did was donations. (Empire Teas, 2022) The research team does not find any policies relevant to human rights, labor rights, smallholders, suppliers and the issues that the company emphasize on the company’s website.

DILMAH CEYLON TEA COMPANY PLC Dilmah was established in 1985 as the first tea company that offer handpicked and packed tea at the origin to maintain the taste of the farm. The company aims to create sustainable tea industry for everyone. Moreover, Dilmah represents 3% of the national export volume of Sri Lanka. (Dilmah Tea, 2022) For human rights policy, the company committed to UNGC. They also have human rights policy which is guided by UNGP, UNGC, ILO principles and the Universal Declaration of Human Rights (UDHR) to mitigate human rights impact resulting from their operation. They also have human rights due diligence and mitigation processes to manage risks (Dilmah Tea, 2022). They also empower their employee by supporting training and development programs and improving diversity. The company also set up a code of conduct to ensure that the supplier’s operations are approaching toward sustainability business. (Dilmah Tea, 2021) HERITAGE TEAS PVT LTD Heritage Teas was created by a group of tea experts both in Sri Lanka and overseas in 1994. The company sells tea products under brand T93, Victor’s, Heritage, Urumaya

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Supply Chains Issues and Sustainability Policies in South And Southeast Asia

and Faiza which are exported to more than 50 countries in Asia, Europe, Middle East, Oceania and American regions. They sell tea products of over 10 million kilograms per year. They also mentioned that more than 5,000 women are empowered in tea industry (Heritage Group, 2022). The company has CSR projects but there is no information found in any publicly disclosed policies that seem relevant to human rights, labor rights, smallholders, and suppliers on the company’s website (Heritage Group, 2022).

ANVERALLY & SONS PVT LTD Anverally Tea has developed since 1890 as a Ceylon tea company. They export tea to over 85 countries around the world with the philosophy of remaining product quality and safety. To ensure its philosophy, the company uses world-class manufacturing facilities (Anverally Tea, 2022). They are committed to honoring special concerns and creating a collaborative and sustainable future for the industry (Specialty Food Association, 2022). The research team does not find any policies relevant to human rights, labor rights, smallholders, and suppliers on the company’s website. However, the company is certified by a number of international standards, including EU Organic, FairTrade, USDA, Rain Forest Alliance, JAS Organic, UTZ, and GMP.

Supply Chains Issues and Sustainability Policies in South And Southeast Asia

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Table 13 Policies of top 5 tea companies in Sri Lanka AKBAR BROTHERS PVT LTD

EMPIRE TEAS PVT LTD

Human Rights

n.a.

n.a.

Labor

n.a.

n.a.

DILMAH CEYLON TEA COMPANY PLC The company have human right policy to mitigate risks in the whole supply chain.

HERITAGE TEAS PVT LTD

ANVERALLY & SONS PVT LTD

n.a.

Certified EU Organic, FairTrade, USDA, Rain Forest Alliance, JAS Organic, UTZ, GMP, etc.

n.a.

The human right policy cover in many issues such as child labor, diversity, bargaining freedom, workplace safety, forced labor, work hours and wages.

Smallholders

n.a.

n.a.

The company says it is committed to engaging with all stakeholders, including smallholders on human rights issues.

n.a.

Suppliers

n.a.

n.a.

The company says it is committed to encourage suppliers to uphold the principles in human right policy within their business to ensure working conditions of supplier’s workers and environmentally responsible

n.a.

Source: Respective company websites

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Supply Chains Issues and Sustainability Policies in South And Southeast Asia

3.4 Major Tea companies in Nepal and their sustainability policies

To consider policies of major tea companies in Nepal, the research team searched for top 10 companies in the industry by asset size or sales. However, there is no information found. The research team tries to explore other trusted information sources, such as government agencies’ research, as an alternative.

The research team found tea producer list provided by National Tea and Coffee Development Board of Nepal. The list shows the names of 31 tea companies (National Tea and Coffee Development Board, 2022). However, we were able to find information for only 3 companies in the list: HIMAL TEA IND. PVT. LTD. Himchuli Foods Packaging Joubari Tea Estate Therefore, the research team randomly picked 2 companies from the Himalayan Orthodox Tea Producers’ Association member list (Upadhyaya, 2018). which is shown below Everest Tea Guarance Organic Tea Thus, the research team considers 5 companies listed above which are shown below.

HIMAL TEA IND. PVT. LTD. HIMAL TEA company was established in 1993 under Rakura brand as the first private orthodox tea factory in Nepal. In present, Rakura becomes leading exporter and manufacturer of high-quality teas in Nepal with support of over 1,600 smallholders (Himalayan Tea, 2022). However, the research team does not find any policies relevant to human rights, labor rights, smallholders, and suppliers on the company’s website.

Himchuli Foods Packaging Himchuli tea is a product under Himchuri Mart which is an online home shopping company. They sell organic green tea, herbal tea and chamomile tea (Himchuli Mart, Supply Chains Issues and Sustainability Policies in South And Southeast Asia

I 53

2022). However, the research team does not find any policies relevant to human rights, labor rights, smallholders, and suppliers on the company’s website.

Joubari Tea Estate Joubari or Jaubari tea estate has developed since 1970s in Ilam. The company claims to produce the best tea in Ilam. The tea estate is organic and uses a hand-picked method. Moreover, they guaranteed that their products are not flavored (Jaubari Tea, 2022). However, the research team does not find any policies relevant to human rights, labor rights, smallholders, and suppliers on the company’s website.

Everest Tea Everest Tea estate was created with the intention to expand farmer’s knowledge on organic farming and tea making. The estate is located inside the Shivapuri national park which is blessed with suitable environment for tea cultivation (Everest Tea Estate, 2022). However, the research team does not find any policies relevant to human rights, labor rights, smallholders, and suppliers on the company’s website.

Guarance Organic Tea Guarance Organic Tea is premium organic tea produced in Nepal. Guarance tea estate carefully planted pure quality young tea and carefully processes it before distributing it. They were awarded as the world’s top 10 teas by Fox news (Guarance Organic Tea, 2022). However, the research team does not find any policies relevant to human rights, labor rights, smallholders, and suppliers on the company’s website.

Table 14 Policies of top 5 tea companies in Nepal HIMAL TEA IND. PVT. LTD.

Himchuli Foods Packaging

Joubari Tea Estate

Everest Tea

Guarance Organic Tea

Human Rights

n.a.

n.a.

n.a.

n.a.

n.a.

Labor

n.a.

n.a.

n.a.

n.a.

n.a.

Smallholders

n.a.

n.a.

n.a.

n.a.

n.a.

Suppliers

n.a.

n.a.

n.a.

n.a.

n.a.

Source: Respective company websites

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3.5 Major Tea companies in Bangladesh and their sustainability policies

To consider policies of major tea companies in Bangladesh, the research team searched for top 10 companies in the industry by asset size or sales. However, there is no information found. The research team tries to explore other trusted information sources, such as government agencies research, as an alternative.

Then, we found the leading tea exporter list created by Bangladesh Tea Board. The list consists of 6 companies. However, the research team can access only 5 company’s websites.

Abul Khair Consumer Products Ltd Kazi & Kazi Tea Estate Ltd (Unable to access the information on the website) Halda Valley Food & Beverage Ltd M.M.Ispahani Limited Meghna Tea Company The Consolidated Tea & Lands Co.(BD) Ltd Thus, the research team randomly chose only 5 companies from the list above to consider their policies which are shown below.

Abul Khair Consumer Products Ltd Abul Khair Group started their business in tobacco company in 1953. They have now flourished into a multi-business portfolio with consumer goods, steel, cement, ceramics, marble, shipping and trading businesses. They introduced their SEYLON tea product in 2004 and become leading tea exporter in a decade. Abul Khair’s Tea priority is on innovations. They introduced pyramid shape tea bag and double chamber stapleless teabags to Bangladesh’s tea market (Abul Khair Consumer Goods Division, 2022). However, the research team does not find any policies relevant to human rights, labor rights, smallholders, and suppliers on the company’s website.

Halda Valley Food & Beverage Ltd Halda Valley has developed since 2003 in the high hill range of Chattogram near Halda river. Halda Valley tea estate was awarded for the highest yield per sector in Supply Chains Issues and Sustainability Policies in South And Southeast Asia

I 55

Bangladesh. They produced 3,380 kilograms of tea per hector while the average of national production was only 1,850 kilograms per hector. Halda Valley is a very highproductivity tea estate because they applied 100% underground permanent irrigation system to ensure the most effective use of surface water and helps the estate revive in dry season. Moreover, they use UV-controlling green houses to take care of young plants and adopted vermicomposting as fertilizer (Halda Valley, 2022). The research team does not find any policies relevant to human rights, labor rights, smallholders, and suppliers on the company’s website.

M.M.Ispahani Limited The Ispahani group was developed since 1820. They are the largest tea company in Bangladesh by capturing around 50% of market share in national branded tea market and 80% of the branded tea-bag market. They also have tea estates, manufacturing factories and over 517 sales centers (Ispahani, 2022).

Meghna Tea Company Meghna Tea Company works under MGI group which is a global enterprise that has more than 50,000 employees, 6,300 distributors, 15,000 suppliers and has an annual turnover of approximately $2.8 billion. The information on the website does not show that tea is one of the major business in MGI group (Meghma Group of Industries, 2022).

Moreover, MGI stated that they care about society and contribute through Corporate Social Responsibility (CSR) (Meghna Group of Industries, 2022). However, they focus on donation and sponsoring in health and education but there is no policy on human rights, labor rights, smallholders, and suppliers found on the website.

The Consolidated Tea & Lands Co.(BD) Ltd The Consolidated Tea & Lands is now over 250 years old. The company’s tea estates are located in Habigonj and Moulvibazar which shared borders with north-Eastern India, Assam and Tripura which are famous tea districts in india (The Consolidated Tea & Lands Co., 2022). However, they focus on donation and sponsoring in health and education but there is no policy on human rights, labor rights, smallholders, and suppliers found on the website.

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Table 15 Policies of top 5 tea companies in Bangladesh M.M.Ispahani

Meghna Tea Company

The Consolidated Tea & Lands

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

Smallholders

n.a.

n.a.

n.a.

n.a.

n.a.

Suppliers

n.a.

n.a.

n.a.

n.a.

n.a.

Abul Khair Consumer Products.

Halda Valley Food & Beverage

Human Rights

n.a.

Labor

Source: Respective company websites

3.6 Trade information

The research team collected information regarding top major destinations of exports from top 5 companies mentioned in the previous section, as well as trade information regarding top export destinations overall for the whole country.

Information on top export destinations at both company level and country level can be found in the following tables.

Table 16 Top countries that the top tea companies in India, Sri Lanka, Nepal, and Bangladesh export their products to Company

Export destination

Source

India Amar Tea Pvt. Ltd.

United States7

Hindustan Unilever Limited

n.a.

Organic India Private Limited

n.a.

Tata Consumer Products

Europe, Canada, Australia, and the United States.

https://www.imarcgroup.com/ indian-tea-manufacturingcompanies

Wagh Bakri Tea Group

40+ plus countries worldwide.

https://www.waghbakritea.com/ global-reach.php

https://societytea.com/pages/ us-store

7 Amar Tea Pvt. Ltd. expanded their market to The United States by opening 45 stores in 16 states.

Supply Chains Issues and Sustainability Policies in South And Southeast Asia

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Company

Export destination

Source

Sri Lanka AKBAR BROTHERS PVT LTD8

Global

https://www.ft.lk/article/18699/ Akbar-Brothers-emerges-asworld%E2%80%99s-secondlargest-tea-exporter https://www.srilankabusiness.com/ exporters-directory/companyprofiles/akbar-brothers-exportspvt-ltd/ https://www.empireteas.com/ about/

EMPIRE TEAS PVT LTD

Western Europe, Far East, Middle East, Russia & CIS, USA, Eastern Europe.

DILMAH CEYLON TEA COMPANY PLC

n.a.

HERITAGE TEAS PVT LTD

Global (e.g. China, Thailand, USA, Canada, Brazil, Russia, Western Europe, Australia)

https://heritagegroup.lk/about-us/ #our-reach

ANVERALLY & SONS PVT LTD

Global

https://www.anverally.com/

Nepal HIMAL TEA IND. PVT. LTD.

n.a.

Guarance Organic Tea

n.a.

Himchuli Foods Packaging Udhyog

n.a.

Everest Tea

n.a.

Joubari Tea Estate

n.a.

8 World’s second tea largest exporter in 2011. (FT, 2011)

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Company

Export destination

Source

Bangladesh Abul Khair Consumer Products Ltd

Western Europe, Far East, Middle East, Russia & CIS, USA, Eastern Europe.

https://www.abulkhaircgd.com/ about-us/

Halda Valley Food & Beverage Ltd

Middle Eastern countries, India, Pakistan and Nepal.

https://haldavalley.com/timeline/

M.M.Ispahani Limited

USA, Saudi Arabia, United Arab Emirates, Qatar, United Kingdom, New Zealand, and Pakistan.

https://www.ispahanibd.com/ tea-in-bangladesh/

Meghna Tea Company

Japan and Pakistan

https://www.mgi.org/ businessverticals/beverage-hot

The Consolidated Tea & Lands Co.(BD) Ltd

n.a

Source: Respective websites

Table 17 Top 10 countries that imported tea from Bangladesh, India, Nepal, Sri Lanka in 2021 Market

Import Value (Thousand USD) Bangladesh9

% of world import

United States of America

969

54.16

Pakistan

604

33.76

Italy

74

4.14

Canada

36

2.01

Germany

24

1.34

Japan

17

0.95

United Kingdom

12

0.67

China

12

0.67

Malaysia

9

0.50

Cyprus

9

0.50

World

1,789

100.00

9 International Trade Centre. (2022). Compare Markets For product 1006 – Rice Exported from Philippines. Market Access Map. https://www.macmap.org/ en/query/compare-market?reporter=All&partner=608&product=1006

Supply Chains Issues and Sustainability Policies in South And Southeast Asia

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Market

Import Value (Thousand USD) India10

% of world import

Iran

167,979

21.33

Russian Federation

95,117

12.08

United States of America

71,705

9.10

United Arab Emirates

62,443

7.93

Germany

59,735

7.58

United Kingdom

39,731

5.04

Japan

27,576

3.50

Kazakhstan

26,605

3.38

Netherlands

23,349

2.96

China

21,395

2.72

World

787,604

100.00

Nepal11

India Germany Russian Federation Netherlands United States of America Japan France Canada China Australia World

20,529 1,289 585 392 365 263 191 120 75 44 24,110

85.15 5.35 2.43 1.63 1.51 1.09 0.79 0.50 0.31 0.18 100.00

10 International Trade Centre. (2022). Compare Markets For product 0902 – Tea, whether or not flavoured Exported from India. Market Access Map. https://www.macmap.org/en/query/compare-market?reporter=All&partner=699&product=0902

11 International Trade Centre. (2022). Compare Markets For product 0902 – Tea, whether or not flavoured Exported from Nepal. Market Access Map. https://www.macmap.org/en/query/compare-market?reporter=All&partner=524&product=0902

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Market

Import Value (Thousand USD) Sri Lanka12

% of world import

Russian Federation

111,859

9.92

United Arab Emirates

111,218

9.86

Iran

106,713

9.46

China

76,275

6.76

Azerbaijan

49,245

4.37

Libya

49,203

4.36

Japan

48,133

4.27

United States of America

47,490

4.21

Saudi Arabia

46,643

4.14

Germany

40,335

3.58

World

1,127,578

100.00

Source: International Trade Centre (2022)

12 International Trade Centre. (2022). Compare Markets For product 0902 – Tea, whether or not flavoured Exported from Sri Lanka. Market Access Map. https://www.macmap.org/en/query/compare-market?reporter=All&partner=144&product=0902

Supply Chains Issues and Sustainability Policies in South And Southeast Asia

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Japan

1% United Kingdom 0.7% China 0.7% Germany 1.3% Malaysia 0.5% Canada 2% Cyprus 0.5% Others 1.3% Italy

4.1%

Iran

Others

24.4% 21.3%

USA

Pakistan

33.8% 54.2%

Russian

China 2.7%

12.1%

Netherlands 3.0% Kazakhstan

3.4% 3.5%

Japan

USA

9.1%

5% Germany

United Kingdom

7.6% 7.9% United Arab Emirates

Bangladesh Japan

1.1%

USA 1.5% Netherland 1.6%

India

France 0.8% Canada 0.5% China 0.3% Australia 0.2% Others 1.1%

Russian Germany 2.4%

Russian

9.9%

5.4%

Others

India

85.2%

39.1%

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Supply Chains Issues and Sustainability Policies in South And Southeast Asia

9.9% Iran

9.5% China

6.8% 4.4%

3.6% 4.1%4.2% 4.3%4.4% Germany Saudi Arabia

Nepal

UAE

USA Japan

Sri Lanka

Libya

Azerbaijan

4

PALM OIL SUPPLY CHAIN IN INDONESIA, THAILAND, PHILIPPINES, AND VIETNAM Supply Chains Issues and Sustainability Policies in South And Southeast Asia

I 63

Palm oil supply chain in Indonesia, Thailand, Philippines, and Vietnam According to the data from ourworldindata.org, 84% of palm oil’s global production is produced by Indonesia and Malaysia. In 2021, Indonesia produced 44.5 million tonnes of palm oil and contributed 59% of global palm oil production. Malaysia as the second largest producer has 18.7 million tonnes of palm oil and contributes to 25% of global palm production (Statista, 2022). Therefore, PRAKARSA (2022) uses Indonesia as the main country to draw palm oil’s global value chain. (See Figure 4).

The chain starts with farmers or smallholders doing farming activities for producing palm oil fresh fruit bunches (FFBs). However, the Indonesian government has established the nucleus (plasma) programs for managing and controlling palm oil production to maintain palm oil production in the country. Therefore, farmers can be separated into 2 groups: Plasma farmer means the farmer who joined the government’s programs.

They need to hand over their lands to partner up with a plantation company that mainly manages the plantation operation, and the farmer will receive a share of the profit (after the company deducted all costs) after they produce fresh fruit bunches (FFBs) to the agreed amount. However, to manage plantation operation the farmer cooperatives is encouraged to be set up for monitoring the production process by the plantation company and be a farmer representative in communicating any concerns between plasma farmers and the plantation company.

Independent farmer means the farmer who manages his/her own plantation.

After all farming activities are done and fresh fruit bunches (FFBs) are produced, plasma farmers distribute them via plantation companies which could be government-owned or private companies to milling factories. For independent farmers, FFBs will be sold to a middleman/broker and the middleman/broker will sell FFBs to a milling factory.

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The milling factory will process FFBs into Crude palm oil (CPO) and Crude palm kernel oil (CPKO) as primary processing. Furthermore, these CPO and CPKO could do secondary processing in a refinery factory which will transform them into biomass products or some certain product categories such as CP8 (raw material product code for cosmetic products).

Consumer goods producers/Retail will use refined palm oil as the main ingredient in end products in the food, pharmaceutical, construction, textile cosmetics, chemical, and biodiesel industry.

Figure 4 Palm oil value chain in Indonesia, Thailand, Philippines, and Vietnam13 Activities

Palm Oil Fruit Bunch Production

Detail of Thrive and activities harvest the fresh fruit bunches (FFBs)

Crude Palm Oil (CPO) Processing (Secondary Processing)

Consumer Goods Production

Refine and fractionate crude products (CPO & CPKO) Crude palm in a wide oil (CPO) range of basic processed Crude palm Coordinate transportation, palm oil (PPO) kernel oil storage, and and processed (CPKO) palm kernel delivery of oil (PPKO) Palm fruit shell goods products.

Fiber (oil cake of palm fruit)

Industries: - Food - Pharmaceutical - Construction - Textile - Cosmetics - Chemical - Biodiesel

Fresh Fruit Palm Oil Fruit Bunch (FFB) Processing Bunch Distribution (Primary Process) FFBs distribution

Process the FFBs into

Crude Palm Oil (CPO) Distribution

Trade palm oil onwards on domestic and export markets

13 Vietnam does not have their plantation area and milling factory. They import CPO and refined palm oil from other countries.

Supply Chains Issues and Sustainability Policies in South And Southeast Asia

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Activities

Palm Oil Fruit Bunch Production

Actors

Plasma Farmers Plasma Farmers’ Cooperative

Independent Farmers (called inti)

Fresh Fruit Palm Oil Fruit Bunch (FFB) Processing Bunch Distribution (Primary Process)

Plantation Company (private/ state-owned companies) Broker/ Middleman

Milling & Crushing Factory

Crude Palm Oil (CPO) Distribution

Distributors

Crude Palm Oil (CPO) Processing (Secondary Processing)

Consumer Goods Production

Refinery Factory

Producers of Consumer Goods

Source: PRAKARSA (2022) and Oxfam (2022)

4.1 Key issues found in report

The research team summarizes key issues from the PRAKARSA report as follows.

Non-involvement of independent farmers & Plasma farmers in the system Independent farmers Independent farmers often sell FFBs at underpriced rates, resulting in a wide gap between plasma and independent farmers. This is because they are unable to involve themselves in FFB pricing at the local level, and FFB pricing information only circulates internally among cooperative members, leaving non-member independent smallholders uninformed.

Independent farmers have difficulties in accessing fertilizers due to a lack of access to some government assistance programs, which usually provide good seeds and a stable fertilizer supply via farmer cooperatives.

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Plasma farmers The single management from the current government regime gave managing power to the plantation company over plasma farmers, which allowed the company to set terms of planting, maintaining, harvesting, and yielding results over plasma farmers. As a result, the company set a profit-sharing scheme to be paid to plasma farmers only by sharing the profit after deducting all their expenses from sales of CPO. There are no regulatory controls over the minimum percentage of profit the farmers can receive or the mechanisms the plantation company uses to calculate and disclose their profit. The amount of profit plasma farmers receive is generally low and insufficient to support their livelihood.

To maintain production quality, the company does not allow farmers to manage their land. Consequently, farmers are prevented from increasing their knowledge and practice in growing palm oil. In addition, information on the land border is being concealed from farmers. This has led to ownership conflicts between farmers or companies.

Plasma farmers have no right to propose the FFB price in the K-index.

The K-Index is the percentage paid to palm oil farmers after deducting all Palm Oil Mill (PKS) expenses for FFB processing.

Lack of workers’ safety and decent working conditions As plasma farmers are unable to engage in farming activities after handing over their land to the plantation company, some plasma farmers then decide to work on their own land as daily casual laborers paid by the plantation company to maintain working activities, not as landholders who have the right to their own trees.

Plantation company workers often cannot access public facilities and decent working conditions. Some work without a contract, or with a contract that is unclear, and far from health facilities.

Plantation companies provide insufficient tools for working protection when conducting their work.

Indigenous peoples or marginalized people only receive a salary without profit sharing from the land being used by the company.

Supply Chains Issues and Sustainability Policies in South And Southeast Asia

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Harvest workers are obligated to work and meet a high target set by the company. Therefore, additional workers are required, mostly from family members and children who are commonly unpaid as only the main workers (mainly adult males in the family) will receive the remuneration.

Gender discrimination Female workers are considered supplemental labor; therefore, women are paid less than men.

Special needs of women during menstruation, childbirth, and breastfeeding are not met.

Women’s role in palm oil production is mainly seen as supplementary, and their roles are often left unrecognized. Because they often do not have legal rights to own land, they do not have the power to negotiate or organize production relations with plantations or companies.

4.2 Major palm oil companies in Indonesia and their sustainability policies

Indonesia is the first place in world oil production with output at around 60% of the global total (Stockholm Environment Institute, 2022). There are many types of companies that operate along the supply chain. In the upstream production (planting & milling), most of them are smallholders. However, for downstream processing (refining & exporting), the market is dominated by only a few big players, some of them are multinational companies. The research team selects the top 5 companies in the palm oil industry based on their refining capacity (Chain Reaction Research, 2022) including Wilmar International Musim Mas PT Pertamina Golden Agri-Resources Royal Golden Eagle

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Wilmar International Wilmar International was established in 1991 with a headquarter located in Singapore.

Today, Wilmar is an integrated agribusiness that covers the entire agricultural commodity value chain, from plantation and milling to processing, refining, marketing, and distributing products to every customer sector. It has over 500 manufacturing plants and an extensive distribution around the world (Wilmar, 2022).

For human rights and labor policies, the company states that it adheres to international human right principle and complies with locally applicable laws. They are drawing guidance from several policies and guidelines such as the UN Universal Declaration of Human Rights, and ILO Core Conventions on Labor Standards. Moreover, they also have their policies on many topics such as no forced labor, child protection, health & safety for workers aligned with manufacturing standards, equal opportunity, and no sexual harassment. These policies are applied to all Wilmar subsidiaries and associates, including suppliers and contractors. However, in case that the local laws are less stringent, this policy will use as a guideline on a case-by-case basis (Wilmar, 2022).

Wilmar has scheme smallholder and independent smallholder programs, which try to improve their agricultural norm towards global sustainability (Wilmar, 2022). For scheme smallholder, the company support their initial financing for land preparation, and materials, and also provide technical knowledge. And once the plasma co-operatives are well established, the smallholder co-operatives will receive small plantations area for self-management (Wilmar, 2022). Moreover, for independent smallholders, the company also helps them to achieve RSPO (Roundtable on Sustainable Palm Oil) group certification.

Lastly, they require their suppliers to comply with their policies such as legality, human rights, NDPE (No deforestation, no peat, no exploitation), and traceability. This process is including the supplier reporting tool for their suppliers to report their compliance and risk-related issues, and site assessments e.g., physical observations, confidential interviews with mill or plantation workers, and action plan development (Wilmar, 2022).

Moreover, Wilmar is also certified by RSPO for sustainable oil palm production.

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Musim Mas Musim Mas was established in 1972 and is one of the largest’s integrated palm oil corporations. It has a present in 13 countries with the main operation in Indonesia.

Their main operations span from cultivation to refining and manufacturing. They also claim to be the first major oil palm group to be 100% certified by RSPO on plantations in Indonesia (Musim Mas, 2022).

For human rights and labor policies, the company states that it respects, protects, and upholds human rights. They are drawing guidance from several international standards such as the International Labor Organization (ILO), the UN Universal Declaration of Human Rights, and the UN Declaration on the Rights of Indigenous Peoples. Moreover, they also have their policies on many topics such as no forced labor, no child labor, occupational health & safety (e.g., responsibility committee, safety training, clinics, and first aid kits), equal opportunity, no sexual harassment, wages & benefits (e.g., fair wages aligned with minimum wage requirements, free facilities such as housing, education, and transport, etc.) (Musim Mas, 2022).

Musim Mas has a program for independent smallholders which aims to integrate them into the sustainable palm oil industry. The curriculum of the program consists of 5 components that work toward NDPE policy compliance and improving livelihoods e.g., personal finance, agricultural practices, and nutrition. Moreover, they also have scheme smallholders which they provide planting materials and knowledge (Musim Mas, 2022).

Lastly, Musim Mas adopt a sustainability roadmap for the supplier side by separating their suppliers into 2 groups including primary supplier (supply significant volume) and secondary supplier (supply a limited volume). This includes several processes such as risk assessments, third-party site verification, self-assessment, training, monitoring, or grievance management which may be different depending on the level of supplier (Musim Mas, 2022).

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PT Pertamina The Milestones of Pertamina has started in the 1950s. Today, the company is an Indonesian state-owned and one of the leading companies in the energy industry. They have a strong commitment to providing energy and developing renewable energy in order to be a world-class energy company and sustain the national energy security (Pertamina, 2022).

Since Pertamina is not mainly focused on the upstream production of palm oil, but refining for biodiesel, most of their policies focus on human rights and labor, but not smallholder. They are adopted several international standards such as the ILO convention, and the UN Global Compact Principle, and have their policies on several topics e.g., health and safety. They are also conducting human rights due diligence on an ongoing basis. Moreover, they are becoming a member of the Women’s Empowerment Principles (WEPs) to promote gender equality.

For the supplier side, they state that they will work with their suppliers toward green and sustainable procurement. The company also includes a clause on ESG requirements for its partner such as Health, Safety, Security and Environment (HSSE) practices, and ISO14001 (Environmental Management) which is dependent on the nature and risk of the company (Pertamina, 2022).

Golden Agri-Resources Golden Agri-Resources (GAR) was established in 1996 and listed on the Singapore Exchange in 1999. The company is one of the world’s largest seed-to-shelf agribusinesses. They are now operating in 13 countries and delivered their product to around 100 countries worldwide, producing more than 2.35 million tonnes of CPO, and managing around 536,000 hectares of plantation (Golden Agri-Resources, 2022).

For human rights and labor policies, the company states that they developed labor policies with guidance by several international standards. They uphold and promote the UN Universal Declaration of Human Rights, support FAO Voluntary Guidelines on Responsible Governance, comply with local laws and regulations, and have other policies such as occupational health and safety (e.g., free medical service, security Supply Chains Issues and Sustainability Policies in South And Southeast Asia

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guards in plantation areas, safety training), gender diversity, fair wage (aligned with Indonesian labor laws), and no child labor (Golden Agri-Resources, 2022).

For smallholders, GAR supports thousands of independent smallholders with technical knowledge sharing and financial assistance by providing interest-free credit to them during the waiting period for new seeding to mature. They provide materials such as high-yielding seeds, fertilizer, and equipment rental, at price below market rate (Golden Agri-Resources, 2022).

Lastly, they require their suppliers to comply with their policies such as human rights, NDPE (No deforestation, no peat, no exploitation), and traceability. This process is including the assessment of potential suppliers based on ESG criteria, systematic assessment of existing suppliers, monitoring, and communication with the stakeholders (Golden Agri-Resources, 2022). Moreover, GAR is also certified by RSPO for sustainable oil palm production.

Royal Golden Eagle Royal Golden Eagle (RGE) was founded in 1973. RGE manages a group of resourcebased companies with a range of operations from the upstream to the downstream including sustainable developing and harvesting to produce diverse value-added products for the market around the world. It has 2 big palm oil companies under its management - Asian Agri and Apical (Royal Golden Eagle, 2022).

For human rights and labor policies, RGE states that it respects the Universal Declaration of Human Rights, the tenure rights of indigenous peoples and rural communities, the ILO Declaration on Fundamental Principles and Rights at Work, and no tolerance for the use of violence. They also have related policies in several aspects such as diversity, a safe and hygienic working environment, no child and forced labor, and no discrimination and harassment.

On the supplier side, RGE will cease to do business with any company that is in serious violation of the company framework in sustainability and do not take any immediate action to correct it. This is including policies such as human rights, no deforestation,

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no new development on peatland, and legally harvested. However, for smallholders, the policies are dependent on each company in the group which respected to this sustainability framework (Royal Golden Eagle, 2022).

Table 18 Policies of top 5 palm oil companies in Indonesia Wilmar International

Musim Mas (RSPO Certified)

Golden Royal Golden Agri-Resources PT Pertamina Eagle (RSPO Certified)

Human Rights Complies with local applicable laws, UN Universal Declaration of Human Rights, ILO Core Conventions on Labor Standards

Respects, protects, and upholds the human rights, ILO, the UN Universal Declaration of Human Rights, and the Rights of Indigenous Peoples

Adopted several international standards such as the ILO convention, UN Global Compact Principle

Labor

Other policies e.g., no forced labor, child protection, health & safety, equal opportunity

Other policies e.g., no forced labor, child protection, health & safety, fair wages & If the local benefits, equal laws are less opportunity, stringent, this no sexual policy will be used harassment as a guideline on a case-by-case basis

Other policies on several topics e.g., health and safety Conduct human rights due diligence on an ongoing basis Becoming a member of Women’s Empowerment Principles (WEPs) to promote gender equality

Respects the Universal Declaration of Human Rights, the tenure rights of indigenous Supports FAO peoples and rural communities, Voluntary Guidelines on the ILO the Responsible Declaration on Fundamental Governance Principles and Complies with Rights at Work, local laws and and no tolerance for the use of regulations violence Other policies Other policies such as occupational in several aspects such as health and safety, gender diversity, safety and hygiene, diversity, fair wage, and no no child labor, and no forced child labor labor

Upholds and promotes the UN Universal Declaration of Human Rights

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Wilmar International Smallholders

Suppliers

Musim Mas (RSPO Certified)

For scheme smallholders, support their financing for land preparation, materials, and technical knowledge

Program for independent smallholders which aims to integrate them into the sustainable palm oil industry and work toward For No Deforestation, independence, No Peat and the company is No Exploitation helping them (NDPE) policy to achieve compliance RSPO group and improving certification. the livelihoods.

Complies with their policies such as legality, human rights, NDPE, and traceability.

Include several processes such as risk assessments, third-party site verification, self-assessment, Has supplier training, reporting monitoring, tool for their or grievance suppliers to management report their which may compliance be different and risk-related depending issues, and site on the level of assessments. supplier.

Source: Respective company websites

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Golden Royal Golden PT Pertamina Agri-Resources Eagle (RSPO Certified) n.a.

Supports thousands of independent smallholders with technical knowledge sharing and financial assistance.

The policies depend on each company in the group, but all must adhere to Royal Golden Eagle’s sustainability framework.

Provides materials at price below market rate.

They will work with their suppliers toward green and sustainable procurement.

The company includes a clause on ESG requirements for its partner such as Health, Safety, Security and Environment (HSSE) which is dependent on the nature and risk of the partner.

Require their suppliers to comply with their policies such as human rights, NDPE, and traceability Includes the assessment of potential suppliers based on ESG criteria, systematic assessment of existing suppliers, monitoring, and communication with the stakeholders.

RGE will cease to do business with any company that is in serious violation of the company framework in sustainability and do not take any action to correct it.

This includes policies such as human rights, no deforestation, no new development on peatland, and 100% legal harvest.

4.3 Major palm oil companies in Thailand and their sustainability policies

Thailand is the third place in the world palm oil production with an output at 3.8% of the global total (Krungsri Research, 2022). Since there are many companies in Thailand that operate along the supply chain including plantation, milling, and refining, the research team selects the top 5 companies in the palm oil industry based on their market capital if they are listed companies in The Stock Exchange of Thailand (SET) or registered capital, using data from Department of Business Development, if they are private company as follows Univanich Palm Oil PCL Lam Soon (Thailand) PCL PPP Green Complex PCL Chumporn Palm Oil Industry PCL United Palm Oil Industry PCL

Univanich Palm Oil PCL Univanich Palm Oil PCL was established in 1969 and became one of the pioneers in Thailand’s palm oil industry since then. Today, Univanich is the leading producer of crude palm oil and quality seeds in Thailand with a total capacity of fruit crushing at 300 tonnes FFB per hour and a palm kernel crushing capacity of 345 tonnes PK per day (Univanich, 2022).

The company has its policies publicly on the website and sustainability report. Using the guideline from RSPO Principles and Criteria, ILO core labor standards, and the National Labor Protection Act, they created people policies that include both labor and human rights policies. These policies include several topics such as human rights, equal opportunity, no discrimination, safe and healthy working condition, no child and forced labor, no harassment, free housing and utilities, and ensuring that wage are above minimum wage (Univanich, 2022). Moreover, they also have some programs for community support and smallholder including knowledge sharing and technical advice such as planting technique, upkeep practices, basic budgeting, or sustainability production (Univanich, 2022). They also supply more than 1.5 million high-yielding seedlings annually to local farmers in their training centers.

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They do not have any policies writing specialized for suppliers to follow publicly on the internet. However, they are certified by RSPO which required them to ensure and verified by the third-party that the basic rights for every stakeholder along the supply chain (e.g., smallholders, landowners, workers, and local communities) are fully respected and considered such as no rainforest cut down for palm plantation, no illegal labor, or ensure safe working environment (Forum for Sustainable Palm Oil, 2022). This can be implied that they meet the requirements for sustainable oil palm products at every step along the supply chain, including the suppliers.

Lam Soon (Thailand) PCL Lam soon was established in 1974 and became a public company by listing on the Stock Exchange of Thailand in 1996. Today, the company provides a wide range of services including extracted and refined products such as palm vegetable oils, shortening, and margarine. They also have a large refinery with a capacity at 700 tonnes per day and a crushing mill with a capacity of 45 tonnes per hour (Lam soon, 2022).

The company has its policies publicly on the website and annual report. For labor policies, they mainly focus on complying with Thai labor standard requirements and related laws (Lam Soon, 2022). They state policies about the quality of working life to be a suitable and safe workplace for everyone without exploration from employees and communities. They also provide training development and important facilities such as drinking water and restroom for their employees. This policy also includes and ensures the quality of working life for all small entrepreneurs in the supply chain (Lam Soon, 2022). Moreover, the company states that it will disclose the essence of the human right policy on its website and scrutinize all issues to ensure that they do not violate along the value chain. This includes follow-up and an update prevention plan. They also state the noninvolvement of any illegal labor such as child labor or imprisoned labor, and will treat all staff fairly, equally, and honorably.

For smallholders, the company tries to promote more than a hundred smallholders in Trang province by creating a community enterprise and leading them to be certified RSPO enhancing to grow sustainable oil. While in upstream activity, the company requires their partner to be a standardized and environmental-friendly vendor by

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having production standards such as ISO9001, GHP, or HACCP (Lam Soon, 2022).

Moreover, Lam soon is also certified by RSPO for sustainable oil palm products.

PPP Green Complex PCL PPP Green Complex was established in 2014 by a joint venture of 3 leading Thailand companies in the sustainable palm oil industry and was designed to be the first comprehensive oil well in Thailand. The company was built around palm plantation and is commercially operational since 2019 (PPP Green Complex, 2022). PPP is providing sustainable clean energy to consumers by integrating environmentally friendly processed and zero waste management systems into every step.

The company has its labor and human rights policies publicly on the website in the same section. This is including fair wages and minimum holidays, equality and no discrimination, human rights support with complaint channel and handling protocol, no child, slavery, and forced labor, no harassment, and compliance with any local labor standards, rules, and laws (PPP Green Complex, 2022).

They do not have other information related to suppliers and smallholders on the sustainability side. However, they have several certifications such as certification in a quality management system (ISO9001:2005), HACCP, and also RSPO certification which required them to ensure and verified by the third-party that the basic rights for every stakeholder along the supply chain (e.g., smallholder, landowners, workers, local communities) are fully respected and considered such as no rainforest cut down for palm plantation, no illegal labor, or ensure safe working environment (Forum for Sustainable Palm Oil, 2022). This can be implied that they meet the requirements for sustainable oil palm products at every step along the supply chain, including the suppliers and smallholders.

Chumporn Palm Oil Industry PCL Chumporn Palm Oil Industry (CPI) was established in 1979 and focuses on the palm crushing mill business. The company also operate its plantation area around over 20,000 rai and sourcing external fresh fruit bunch from farmer around Chumporn province (Chumporn Palm Oil, 2022).

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The company has its policies publicly on the website and annual report. For labor policies, this is including most normal practices like providing career development, fair wages, complaint channel, workplace safety, and work-life balance. Moreover, the company also states separately about their human right policy and guideline on several topics such as equality, discrimination, no forced and child labor, and no sexual harassment. This is including all processes from setting policies, impact evaluation, monitoring, communication, and remedy (Chumporn Palm Oil, 2022).

For smallholders, the company has some development programs and follow-ups to increase their knowledge of good practices for oil palm planting. Moreover, for their partner, the company requires that all sellers or palm growers must comply with the law such as the harvest area must be legal own without burning forest, or the labor policy of their supply must be aligned with the local law (Chumporn Palm Oil, 2022).

Lastly, they are also certified by RSPO for sustainable oil palm production.

United Palm Oil Industry PCL United palm oil industry was established in 1978. They own several large oil palm plantation areas in Krabi and Surathani provinces, Thailand with a total area of around 21,000 rai. They also operate their mills for extracting crude palm oil from the fresh fruit bunch (United Palm Oil Industry, 2022).

The company has its policies publicly disclosed on the website and annual report. For labor policies, they mainly focus on complying with Thai labor standard requirements and related laws. They publish policies about the working environment, health, and safety by providing training and important facilities such as residences, drinking water, and restroom.

For smallholders, the company tries to educate external growers on oil palm management to increase their profit and sustainable revenue. While in upstream activity, the company requires that all sellers or palm growers must comply with the law such as harvest area must be legal without burning forests, and child labor (United Palm Oil Industry, 2022). The company also has another source from their estate

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which is certified by RSPO. Moreover, United Palm Oil is also certified by RSPO for sustainable oil palm production.

Table 19 Policies of top 5 palm oil companies in Thailand Univanich Palm Oil

Lam Soon (Thailand)

PPP Green Complex

Chumporn Palm Oil Industry

United Palm Oil Industry

Human Rights Using the guideline from RSPO Principles and Criteria, ILO core labor standards, and the National Labor Protection Act

Disclose the essence of the human right policy on website and scrutinize overall issues to ensure that they do not violate anyone in the supply chain.

RSPO certified; has policies including fair wages and minimum holidays, equality and no discrimination, human rights support with complaint channel and handling protocol, no child, slavery, and forced labor, no harassment.

Has policies on discrimination, equality, no child and forced labor, and no sexual harassment.

n.a.

Labor

Policies include human rights, equal opportunity, no discrimination, safe and healthy working condition, no child and forced labor, no harassment, free housing and utilities, and ensure that wages are above minimum wage

Focus on complying with Thai labor standard requirements and related laws Quality of working life to be a suitable and safe workplace for everyone Provide important facility

Beyond setting policies, has mechanisms for evaluation, monitoring, and remedy.

Focus on providing career development, fair wages, grievance channel, workplace safety, and work-life balance.

Focus on complying with Thai labor standard requirements and related laws.

Has policies on the working environment, health, and safety Provide important facility

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Smallholders

Univanich Palm Oil

Lam Soon (Thailand)

PPP Green Complex

Chumporn Palm Oil Industry

United Palm Oil Industry

Knowledge sharing and technical advice such as planting, upkeep practices, and budgeting

Create a community enterprise and helped facilitate them to get RSPO certification.

RSPO certification requires that the company ensure the basic rights for every stakeholder such as no deforestation for palm plantation, no illegal labor, providing a safe working environment, and fair compensation.

Has some development program and its follow-up to increase smallholders’ knowledge on good planting practices.

Educate external growers on palm oil management to increase their profit and sustainable revenues.

No policy beyond stating that all suppliers must comply with all laws and regulations.

No policy beyond stating that all suppliers must comply with all laws and regulations.

Supplies more than 1.5 million seedlings annually to local farmers

Suppliers

RSPO certification requires that the company ensure the basic rights for every stakeholder such as no deforestation for palm plantation, no illegal labor, providing a safe working environment, and fair compensation.

Requires their partners to be a standardized and environmentalfriendly vendor by having production standard.

Source: Respective company websites

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4.4 Major palm oil companies in Philippines and their sustainability policies

The Philippines is a very small producer of the palm oil industry. Their production is only around 100,000 tonnes per year (USDA, 2022) which is less than 0.2% of the market. Their market for milling and refining palm oil is controlled by a small group of companies. The research team used the name list and information from a summary of oil palm suppliers (Philippine Coconut Authority Regional Officess, 2022), Philippine palm oil industry roadmap 2014-2023 (The Philippine Coconut Authority-Palm Oil Development, 2022), and their companies website to selects the top 5 companies in the palm oil industry based on their sharing capacity in the market for milling and refining palm oil as follows Agumil Philippines, Inc. A Brown Energy and Resources Development, Inc. Caraga Oil Refining, Inc. Kenram Industrial & Development, Inc. Univanich Carmen Palm Oil Corporation

Agumil Philippines, Inc. Agumil Philippines was established in 2005 as a palm oil miller for crude palm oil and palm kernel. They have their plantation areas, approximately 15,000 hectares, and three oil mills across the region located in Buluan, Maguindanao, and Palawan with a total capacity of 90 tonnes FFB per hour (The Philippine Coconut Authority-Palm Oil Development, 2022). The company does not have any policy information publicly posted on the internet. Moreover, there is no information about their human right, smallholder, supplier, or labor policies, or even their website.

A Brown Energy and Resources Development, Inc. A Brown Energy and Resources Development (ABERDI) is a subsidiary of the A Brown Company which was established in 1966. ABERDI is engaged in the manufacture and trading of goods related to palm oil such as crude palm oil. They have their own 10 tonnes FFB per hour mill and refinery plants with a capacity of 50 per day. Moreover, they also manage some plantation areas of around 1,350 hectares (A Brown Company, 2022).

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The company has its labor policies in its code of conduct (most of them are punishment, not welfare) and policy on the health safety and welfare of employees, but do not have any statement specialized for the human right policy. Most of their policies are about health, safety, and welfare in the workplace such as no sexual harassment, performance-based bonus, training and development for employees, and ensuring safe working conditions, equipment and work sites by continuing to identifying and eliminating related risks through close collaboration with management and employees.

While some of their policies focus on their plantation and mill employees by conducting training for them such as safety, wellness, pollution control, or waste management (A Brown Company, 2022). For the supplier side, the company only states that they will ensure sustainability by acting with genuine concerns for all our stakeholders and the environment (A Brown Company, 2022), but do not have any detail.

Caraga Oil Refining, Inc. Caraga Oil Refining inc. (CORI) was founded and established by Filipino, Malaysian and Indonesian entrepreneurs who have been in the Palm Oil business for more than 30 years. They are one of the leading producers in the palm oil industry with daily refining rated capacity of 150 tonnes and 50 tonnes for palm kernel crushing. Moreover, they also have a sister company, Filipinas Palm Oil Plantations, inc. (FPPI), which is the largest oil palm plantation in Mindanao (Caraga Oil Refining, 2022). The company does not have any policy information publicly posted on the internet. Moreover, there is no information about their human right, smallholder, supplier, or labor policies.

Kenram Industrial & Development, Inc. The company was established in 1951 as Kenram Phils. Inc. as a fiber producer, then by the late 1960s, they changed to focus on the oil palm business. They transfer their ownership to Kenram Industrial & Development, Incorporated (KIDI) in 1987 and since then they operate their mill in Isulan, Sultan Kudarat with a total capacity of 65 FFB tonnes per hour (The Philippine Coconut Authority-Palm Oil Development, 2022).

The company does not have any policy information publicly posted on the internet.

Moreover, there is no information about their human right, smallholder, supplier, or labor policies, or even their website.

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Univanich Carmen Palm Oil Corporation Univanich Palm Oil PCL was established in 1969 and became one of the pioneers in Thailand’s palm oil industry since then. In 2014, Univanich completed the process of the new joint venture with the Carmen Palm Oil Corporation factory in Mindanao, Philippines with a capacity of 30 FFB tonnes per hour. And by 2020, they expand their factories capacity in the Philippines to 60 tonnes per hour and became one of the leaders in the Philippines (Univanich, 2022).

There is no specific information about this company, however, its parent company (Univanich Palm Oil PCL) has its policies publicly on the website and sustainability report. Using the guideline from RSPO Principles and Criteria, and ILO core labor standards, they created people policies that include both labor and human rights policies. These policies include several topics such as human rights, equal opportunity, no discrimination, safe and healthy working condition, no child and forced labor, no harassment, free housing and utilities, and ensuring that wages are above minimum wage (Univanich, 2022). But, for the smallholder, they do not have any information about community support available in the Philippines.

Moreover, they do not have any policies writing specialized for suppliers to follow publicly on the internet. However, they are certified by RSPO which required them to ensure and verified by the third-party that the basic rights for every stakeholder along the supply chain (e.g., smallholders, landowners, workers, and local communities) are fully respected and considered such as no rainforest cut down for palm plantation, no illegal labor, or ensure a safe working environment (Forum for Sustainable Palm Oil, 2022). This can be implied that they meet the requirements for sustainable oil palm products at every step along the supply chain, including the suppliers and smallholder.

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Table 20 Policies of top 5 palm oil companies in Philippines Agumil Philippines

A Brown Energy and Resources Dev.

Caraga Oil Refining

Kenram Industrial & Development

Univanich Carmen Palm Oil

Human rights

n.a.

n.a.

n.a.

n.a.

Labor

n.a.

Health, safety, and welfare in the workplace such as no sexual harassment, performancebased bonus, training and development for employees, and ensuring safe working conditions, equipment, and work sites by continuing to identify and eliminating related risks through close collaboration with management and employees.

n.a.

n.a.

Their parent company (Univanich Palm Oil PCL) has policies such as human rights, equal opportunity, no discrimination, safe and healthy working condition, no child and forced labor, no harassment, free housing and utilities, and ensure that wages are above minimum wage by using the guideline from RSPO Principles and Criteria, and the ILO core labor standards.

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Agumil Philippines

A Brown Energy and Resources Dev.

Caraga Oil Refining

Kenram Industrial & Development

Univanich Carmen Palm Oil

Smallholders

n.a.

Has policies that are focused on plantation and mill employees by conducting training for them such as safety, wellness, pollution control, and waste management.

n.a.

n.a.

Suppliers

n.a.

Ensure sustainability by acting with genuine concerns for all our stakeholders and the environment (no details).

n.a.

n.a.

RSPO certified (Parent company) (required them to ensure the basic rights for every stakeholder such as no rainforest cut down for palm plantation, no illegal labor, providing a safe working environment, fair compensation).

Source: Respective company websites

4.5 Major palm oil companies in Vietnam and their sustainability policies

In the palm oil industry, Vietnam is a net importer since they do not have their own plantation area and rely almost totally on importation from Malaysia and Indonesia (World Integrated Trade Solution, 2022). Since there is no information in the upstream sector, the research team selected the top 5 edible oil companies (including every type of oil) by selecting all companies that are publicly listed in the Vietnam market (VNDirect, 2022) followed by a private company that has the highest share in the edible oil market (VietnamCredit, 2022). The 5 selected companies are 2 listed companies - KIDO Group - Vietname Vegetable oils industry corporation Supply Chains Issues and Sustainability Policies in South And Southeast Asia

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3 private companies - Calofic - Tuong An - Golden Hope Nha Be

KIDO Group KIDO Corporation was established in 1993 and is one of the leading Food & Flavor companies in Vietnam and focusing on the confectionary area. In 2015, they are expanding their business into essential food by establishing the KIDO Group. By promoting existing platforms, KIDO continues to maintain its position in the frozen industry and expand its lead into other sectors such as cooking oil, instant noodles, or seasoning seeds (Kido Group, 2022).

Since KIDO Group is not mainly focused on the upstream production of palm oil, most of their policy focus on manufacturing standards such as ISO 9001-2008 on Quality Management, or the Occupational Health and Safety Assessment Series (OHSAS 18001-2008), and not focusing on the smallholder. Their people policies focus on nurturing and developing the capabilities or skills to meet the demand and personal needs, but do not state anything specially about human rights (Kido Group, 2022). On the supplier side, the company states that they want to create a sustainable supply chain for all partners but does not specify any details.

Vietname Vegetable Oils industry Corporation Vietname Vegetable Oils Industry Corporation (Vocarimex) was established in 1976 and became one of the leading companies in vegetable oil in Vietnam. The company has a product line of more than 50 oil and hundreds of cosmetics products (Vocarimex, 2022).

Since Vocarimex is mainly focused on the process of palm oil refining and distribution using imported material from other countries, they do not directly have a relationship with smallholders. Their policy focus on manufacturing standard such as quality management system under ISO 9001: 2000, HACCP. For labor policies, most of them and normal practices such as health care benefits and insurance, working time align

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with the local law, respected and equally without distinction, and clear policy of regime wages and bonuses (Vocarimex, 2022). Moreover, they do not have any policies stated specifically about human rights on their website. As same as for the supplier policy, they do not state any special requirements for their suppliers.

Calofic Calofic was established in 1996 with an initial investment of USD 22 million and has increased to USD 261 million nowadays. They are operating 2 manufacturers in Quang Ninh and Ho Chi Minh City with a capability of outputting around 2300 tonnes per day-night. Calofic has become a leader in the edible oil industry through its popular household brands such as Meizan, Kiddy, Neptune, Simply, and Cai Lan (Calofic, 2022).

Since Calofic is not mainly focused on the upstream production of palm oil, most of its policy focus on manufacturing standards without any information about smallholders.

Their labor policies are posted in the section of the company mission and core values such as ensuring the right infrastructure, equipment, tools, and skills are in place, or something vaguer like comply company policies and code of ethics without publicly available (Calofic, 2022). Moreover, they do not have any policies stated specifically about human rights on their website. As same as for the supplier policy, they do not state any special requirements for their suppliers.

However, Calofic also offers RSPO certification as an option for their customer.

RSPO certification required the company to ensure and verified by the third-party that the basic rights for every stakeholder along the supply chain (e.g., smallholders, landowners, workers, local communities) are fully respected and considered such as no rainforest cut down for palm plantation, no illegal labor, or ensure safe working environment (Forum for Sustainable Palm Oil, 2022). This implies that the company, at least, has the capacity to do a sustainable business.

Tuong An Tuong An was established in 1977 and is recognized as one of the most reputable brands in vegetable-based oils and fats. They provide a wide range of products such as cooking oil, sesame oil, or margarine. Moreover, their products are also exported to many countries around the world such as the U.S., Japan, Singapore, Taiwan, and the Middle East (Tuong An, 2022).

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Since Tuong An is not mainly focused on the upstream production of palm oil, most of their policy focus on manufacturing standards such as HCCAP Standards, or ISO 9001:2008 Standards. For labor policies, most of them are normal practices such as health care benefits, a good working environment, equipment and protection for employees, compliance with Vietnam employment act, no discrimination, and equal opportunity (Tuong An, 2022). However, they do not have any policies stated specifically about human rights on their website. As same as for the supplier policy.

Golden Hope Nha Be Golden Hope Nha Be Edible Oils Co. Ltd. was established in 1992 which the purpose of production in palm olein and soybean oil to serve the local market. The company has its firm located nearby the oil port to have a competitive advantage in material import and exporting oil (Golden Hope Nha Be, 2022).

Golden Hope Nha Be do not have any of their policies information publicly posted on the internet. No information about their human right, smallholder, supplier, or labor policies. However, they have the certification in a quality management system (ISO9001:2000), and are also RSPO certified which required them to ensure and verified by the third-party that the basic rights for every stakeholder along the supply chain (e.g., smallholder, landowners, workers, local communities) are fully respected and considered such as no rainforest cut down for palm plantation, no illegal labor, or ensure safe working environment (Forum for Sustainable Palm Oil, 2022). This can be implied that they meet the requirements for sustainable oil palm products at every step along the supply chain.

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Table 21 Policies of top 5 palm oil companies in Vietnam Human Rights

Labor

Smallholders Suppliers

KIDO Group

Vocarimex

Calofic

Tuong An

n.a.

n.a.

n.a.

n.a.

Golden Hope Nha Be

RSPO certified, which required Ensure the right Health care Health care Aligned with them to ensure infrastructure, benefits, manufacturing benefits and and verified by good working equipment, insurance, standards the third-party working time tools, and skills environment, such as that the basic equipment and Occupational align with the are in place rights for every protection for Health and Safety local law, safety stakeholder employees, Company equipment, Assessment along the supply compliance Series (OHSAS) respected and policies and chain (e.g., equally without code of ethics with Vietnam smallholders, employment act, distinction, and (no details).

Nurture and landowners, no discrimination, clear policy develop the workers, local and equal capabilities or of wages and communities) opportunity. skills to meet bonuses. are fully the demand respected and and personal considered needs. such as no rainforest cut n.a. n.a. n.a. n.a. down for palm n.a. n.a. n.a.

Company plantation, no states that they illegal labor, want to create or ensure a sustainable safe working supply chain environment. for all partners (no details).

Source: Respective company websites

4.6 Trade information

The research team collected information regarding top major destinations of exports from top 5 companies mentioned in the previous section, as well as trade information regarding top export destinations overall for the whole country.

Information on top export destinations at both company level and country level can be found in the following tables.

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Table 22 Top countries that the top palm oil companies in Indonesia, Thailand, Philippines, and Vietnam export their products to Company

Export destination

Source Indonesia

Wilmar International

China, (Global)14

https://www.wilmar-international.com/our-businesses/globalmarkets https://media-wilmar.todayir.com/20220330100549312919595_en.pdf https://www.proforest.net/fileadmin/uploads/proforest/Documents/ Publications/sustainable-palm-oil_trade-between-indonesiaand-china-1-2-1.pdf

Musim Mas

China, (Global)15

https://www.proforest.net/fileadmin/uploads/proforest/Documents/ Publications/sustainable-palm-oil_trade-between-indonesiaand-china-1-2-1.pdf https://www.musimmas.com/global-presence/

PT Pertamina

n.a. (Global)

https://pertamina.com///Media/File/Pertamina_Annual_Report_ 2021.pdf

Golden Agri-Resources

China, (Global)16

https://www.goldenagri.com.sg/?smd_process_download=1 &download_id=72254 https://www.proforest.net/fileadmin/uploads/proforest/Documents/ Publications/sustainable-palm-oil_trade-between-indonesiaand-china-1-2-1.pdf

Royal Golden Eagle

China, (Global)

https://www.proforest.net/fileadmin/uploads/proforest/Documents/ Publications/sustainable-palm-oil_trade-between-indonesiaand-china-1-2-1.pdf https://www.rgei.com/about/our-company

Thailand Univanich Palm Oil Lam Soon (Thailand)

Malaysia, India

https://univanich.com/wp-content/uploads/2022/07/20220421uvan-ar2021-en.pdf

http://www.lamsoon.co.th/assets/pdf/AR-OneReport/lst_ar-56China, India, Malaysia, Bangladesh, Pakistan, etc. 1_2021.pdf

PPP Green Complex

n.a.

Chumporn Palm Oil Industry

Malaysia, Cambodia, Bhutan, Myanmar, etc.

United Palm Oil Industry

http://www.upoic.co.th/assets/pdf/AR-OneReport/upoicThe Company did not directly export any palm oil form56-1_OneReport-2021-eng.pdf in last three years.

https://www.prachachat.net/economy/news-538645 https://cpi-th.com/public/upload/ir/files/file-2603202117151803.pdf

14 The Group operates in several countries with dominant operations in Singapore, People’s Republic of China, Indonesia, Malaysia, Australia, Europe, Ghana, Nigeria, Vietnam, India and others

15 Plantation/Office locations: Brazil, China, Germany, India, Italy, Malaysia, Netherlands, Singapore, Spain, UK, US, Vietnam 16 Emphasis on the growing markets in Europe, China, India, Pakistan, the Middle East and the United States

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Company

Export destination

Source Philippines

Agumil Philippines, Inc.

n.a.

A Brown Energy and Resources Development, Inc.

n.a.

Caraga Oil Refining, Inc.

https://www.caragaoilrefining.com/ n.a.

(Most use within country)

Kenram Industrial & Development, Inc.

n.a.

Univanich Carmen Palm Oil Corporation

n.a.

Vietnam KIDO Group

n.a.

Vocarimex

Japan, Australia, New Zealand, Korea, Iraq, Ghana, etc.

https://vocarimex.com.vn/uploads/document/bao_cao_thuong_ nien_nam_2021.pdf

Calofic

Taiwan, Singapore, Laos, Cambodia, Mongolia, Hong Kong, Australia, New Zealand, Korea, Japan

https://www.calofic.com.vn/product/new-dau-dau-nanh-simplynguyen-chat-xuat-khau/?lang=en https://www.calofic.com.vn/product/simply-pure-rice-bran-oilexport/?lang=en

Tuong An

U.S., Japan, Singapore, https://www.tuongan.com.vn/en Taiwan, the Middle East, the Philippines, Laos, Cambodia, and so forth

Golden Hope Nha Be

China (Mainland), Asia, Australia, Africa

https://goldenhope-edibleoil.en.ec21.com/company_ tradedetails.html

Source: Respective websites

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Table 23 Top 10 countries that imported palm oil from Indonesia, Thailand, Philippines, Vietnam in 2021 Market

Import Value (Thousand USD) Indonesia17

% of world import

China

4,326,376

16.39

India

3,939,553

14.92

Pakistan

2,996,355

11.35

United States of America

1,449,233

5.49

Bangladesh

1,356,611

5.14

Russian Federation

1,219,429

4.62

Spain

1,076,520

4.08

Malaysia

1,063,460

4.03

Myanmar

849,492

3.22

Egypt

735,921

2.79

World

26,397,336

100.00

Thailand18

India Kenya Uganda Myanmar China Ethiopia Lao PDR Djibouti Malaysia Cambodia World

585,772 30,647 12,720 2,382 1,591 757 618 525 505 435 636,584

92.02 4.81 2.00 0.37 0.25 0.12 0.10 0.08 0.08 0.07 100.00

17 International Trade Centre. (2022). Compare MarketsFor product 1511 – Palm oil and its fractions, whether or not refined, but not chemically modified Exported from Indonesia. Market Access Map. https://www.macmap.org/en/query/compare-market?reporter=All&partner=360&product=1511

18 International Trade Centre. (2022). Compare Markets For product 1511 – Palm oil and its fractions, whether or not refined, but not chemically modified Exported from Thailand. Market Access Map. https://www.macmap.org/en/query/compare-market?reporter=All&partner=764&product=1511

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Market

Import Value (Thousand USD) Philippines19

% of world import

Malaysia

15,889

40.53

India

6,802

17.35

Sri Lanka

4,582

11.69

Singapore

3,776

9.63

Kenya

2,877

7.34

Uganda

1,658

4.23

Cameroon

1,435

3.66

China

953

2.43

Nepal

656

1.67

United States of America

288

0.73

World

39,200

100.00

Vietnam20

Cambodia World

2,045 2,045

100 100.00

Source: International Trade Centre (2022)

19 International Trade Centre. (2022). Compare Markets For product 1511 – Palm oil and its fractions, whether or not refined, but not chemically modified Exported from Philippines. Market Access Map. https://www.macmap.org/en/query/compare-market?reporter=All&partner=608&product=1511

20 International Trade Centre. (2022). Compare Markets For product 1511 – Palm oil and its fractions, whether or not refined, but not chemically modified Exported from Viet Nam. Market Access Map. https://www.macmap.org/en/query/compare-market?reporter=All&partner=704&product=1511 Supply Chains Issues and Sustainability Policies in South And Southeast Asia

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Uganda 2.0% Myanmar 0.4% China 0.3% Ethiopia 0.1% Lao PDR 0.1% Djibouti 0.1%

Malaysia 0.1% Cambodia 0.1% Others 0.1%

Kenya

Others

28%

China

16.4% India

14.9%

2.8% Egypt 3.2% Pakistan Myanmar 4% Malaysia 4.1% 4.6% 5.1%5.5% Spain

11.4%

Russian

Bangladesh

Cameroon

3.7%

4.2%

Kenya

Thailand

Malaysia

40.5%

9.6%

Sri Lanka

11.7%

India

Cambodia

100%

17.4%

Philippines

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92%

China 2.4% Nepal 1.7% USA 0.7% Others 0.7%

Uganda

Singapore

India

USA

Indonesia

7.3%

4.8%

Supply Chains Issues and Sustainability Policies in South And Southeast Asia

Vietnam

5

COFFEE SUPPLY CHAIN IN VIETNAM Supply Chains Issues and Sustainability Policies in South And Southeast Asia

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Coffee supply chain in Vietnam

Vietnam is a large coffee producer in the world (Parkarsa, 2022). In 2016, Vietnam coffee exports reached up to 3.4 billion dollars, which is almost 40% of total agricultural export value. In Parkarsa’s report, the coffee global value chain is derived from Fernandez-Stark and Bamber (2012) which is shown in Figure 5.

Figure 5 Vietnam in coffee global value chain Activity

Harvest/Production Seedings Fertilizer Sprays

Actor

Farmers

Arabica Robusta

>500,000 Producers

Processing

Wet Process Dry Process

5 Washing Stations >200,000 Dry Mills

Trade

Roasting

Marketing

Commodity Traders

Roast Coffee

Specialty Traders

Instant Coffee

Supermarket / Food Service Industry / Coffee Bars

8 Large Traders >100 Specialty

10 Roasters

Domestic / Export

Source: Parkarsa (2022)

According to the report, roasters are the key actors (30%) and can generate the highest profit margin along the value chain. Roasting requires scientific techniques which are obstacles of Vietnam players.

The value of coffee export is calculated by using multi-nation input-output (I/O) data, provided by University of Sydney, Australia. It is shown in Figure 6. $1.5 billions Industry $8.2 billions Coffee Beans

$4.2 billions

$5.8 billions $0.9 billions

Beverage Others

Exporting $16.2 billions Final Demand

$1.9 billions $5.7 billions $8.6 billions

Source: Parkarsa (2022)

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Food Manufactures

Supply Chains Issues and Sustainability Policies in South And Southeast Asia

Households Restaurants / Hotel Wholesalers

5.1 Key issues found in report

The research team summarizes key issues from Parkarsa’s report as follows.

Most of Vietnam’s employment in the coffee global value chain is in the cultivation stage, which is a high labor-intensive stage. However, coffee production depends on weather patterns and the global coffee price. Thus, most workers are seasonally employed and may be affected by many factors.

Global climate change directly affects the Central Highlands, which is the largest coffee-growing area in Vietnam. As a result, many farmers cut down their coffee trees and replace them with other trees, such as cocoa.

The water quality is polluted and affects the coffee washing stations. Some stations are not accepted or certified, leading to a reduction in Vietnam’s coffee export turnover.

The cost of coffee production has been increasing rapidly because the supply chain is disrupted by the Covid-19 pandemic. Farmers need to import inputs, such as seeds, fertilizer, and sprays, which have higher prices.

There is income inequality by gender. Women often earn lower incomes than men. Women are involved in maintaining trees and picking cherries during harvest, while men are involved in roasting coffee.

In the aforementioned report, Parkarsa uses information from the Rainforest Alliance (RA) and JDE Common Grounds Initiative (2020) to summarize the Origin Issue Assessment (OIA), which is used to identify potential issues related to coffee production.

The research team underlines the sentences that are the main issues in the coffee value chain in Vietnam. It is shown in Table 24.

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Table 24 Origin Issue Assessment on Vietnam’s coffee Issue Youth Inclusion

Gender Equality

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Evidence “33% of rural youth workers in Vietnam get their main source of employment from agriculture, although it often involves precarious and low-paid work (OECD, 2017). Multiple sources suggest that projects around youth inclusion in agriculture are ongoing unlike the media (2019) which state that the sector lacks young, educated, skilled and entrepreneurial people. The Vietnam Farmers’ Union is now implementing technical training for young farmers and provides access to low-interest loans. Hightech farming innovations are also pushed forward by Microsoft and Vietnet Information Technology through programs such as “Youth Spark Digital Inclusion”.”

“Plenty of evidence suggests that women inclusion and gender equality are high on the agenda of e.g. CCAFS, CGIAR and IFC for development and agriculture projects in the coffee sector.

Although this might be true for projects, women representation in the workforce remains limited, with an inequality index of ‘medium’ according to Social Hotspot Database.”

Supply Chains Issues and Sustainability Policies in South And Southeast Asia

Prevailing expert opinion “Medium-low risk: “When looking at the country’s coffee producing regions, it is likely that participation of young farmers is promoted”; “Coffee farming is relatively good business in Vietnam, increasingly recognized by the youth and promoted through vocational schools and trainings” (Expert survey, 2020).”

“Medium-low risk: “Women partially have equal rights, responsibilities and opportunities”; “In Vietnam, the gender balance is improving although there is still room for improvement regarding female representation in lead positions or in tribal communities” (Expert survey, 2020).”

Issue

Child Labor

Collective Bargaining

Evidence “Coffee is listed on the US Department of Labor’s (2018) List of Goods Produced by Child Labor. Though, it is stressed that it’s listed in part due to Vietnam’s commitment to investigate and combat this issue. The risk of child labor in the agricultural sector remains very high according to Social Hotspot Database with a high percentage (60-80%) of total child labor in agriculture (US SD, 2019). IFC denoted that child labor has been a historic issue in Vietnam, though not reported recently. The incidence of child labor is seen especially during peak harvesting season and within ethnic minority groups (JDE regional insights, 2020).”

“Vietnam has seen its ratings on respect for workers’ rights worsen to a level 5 (rank 0 to 5+) in ITUC’s Global Rights Index, listing ‘no guarantee of rights’ and a rise in attacks on workers’ rights in law and practice. The Freedom House (2020) ranks Vietnam 1/12 for associational and organisational rights. According to the IFC (2017) there are no known coffee unions in Vietnam.

Alternatively, ICO (2019) report that 71 coffee cooperatives have been set up in the Central Highlands and other regions. Unofficial trade unions and forms of collectives are widespread including youth and women’s organisations (JDE regional insights, 2020).”

Prevailing expert opinion “Medium-low risk: “Child labor occurs to a certain extent in the country’s coffee producing regions”; “Children sometimes help their families with light work on the field a few weeks per year, during harvest season. This could interfere with their schooling specifically when combined with seasonal migration” (Expert survey, 2020).”

“Medium-high risk: “When looking at the country’s coffee producing regions, it is unlikely that workers are fully aware of their rights and duties and that their employers adhere to those rights and duties including the right of collective bargaining”; “Seasonal laborers are integral to the coffee industry, these workers are probably not aware of their rights” (Expert survey, 2020).”

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Issue Minimum Wage

Occupational Health & Safety

Evidence “Numerous sources including the World Bank, ILO, Fair Wear, Wage Indicator and Media report on inconsistencies and noncompliance in minimum wage payments to workers among men and women in Vietnam. Social Hotspot Database rebukes this and scores Vietnam as ‘low risk’ in comparing wages in the agriculture sector to the country minimum wage. No details concerning minimum wage paid to workers in the coffee industry are found.”

“The US SD Country report on Human Rights (2019) for Vietnam states that on-the-job injuries due to poor health and safety conditions and inadequate employee training remains a problem. Farmers’ awareness on occupational health and application of personal protection when being in close contact with pesticide has been improved though still is limited (Arafin, 2017).”

Chains Issues and Sustainability Policies in South And Southeast Asia 100 I Supply

Prevailing expert opinion “Medium-low risk: “Most workers are paid the minimum wage or more”; “The minimum wage in Vietnam remains low” (Expert survey, 2020).”

“Medium-low risk: “When looking at the country’s coffee producing regions, it is unlikely that workers enjoy a safe working environment, where adequate steps are taken to prevent work related injuries”; “Availability and use of protective equipment is limited in Vietnam’s coffee sector, where application of agrochemicals is widespread” (Expert survey, 2020).” “*Unsafe Working Conditions was listed as a top-priority issue in the previous OIA Vietnam (2017). Topics addressed in the 2017-version have been broken down into more specific themes and greater focus is put on coffeespecific evidence for this version.”

Issue Farm & Household Economics

Trading Relationship

Evidence “According to a country report

by USDA Foreign Agriculture Service, falling coffee prices sometimes push farmers to switch to other cash crops such as black pepper, avocado or passion fruit.

Additionally, the majority of coffee farmers still in debt with banks due to previous loans (Media, 2017).

Research in the Central Highland’s Dak Lak Province suggests that low-quality inputs result in large expenses on bad harvests for smallholder coffee producers (Anh et al., 2019). Unskilled and fragmented labor add to the struggle to meet international requirements for growing coffee, with 4C seen as the baseline production requirement.”

“According to USAID (2017) data sheets, the coffee sector’s competitivity leads to the vast majority of smallholder coffee farmers being in tight value chains with close and stable links to the market. Value chain actors increasingly work together according to the World Bank (2017) and schemes exist by e.g. ICO (2019) to improve smallscale farmers’ access to finance.

Nguyen & Sarker (2018) offer contrasting evidence from Dak Lak province in that the lives of Vietnamese farmers’ have not been improved because of high risks in the production environment and market conditions including risks in price volatility.”

Prevailing expert opinion “Medium-low risk: “Some coffee farmers are not sufficiently aware of the farm and household economics”; “But, farmers are generally aware of cost/benefit relations and keep basic records of farm business” (Expert survey, 2020).”

“Medium-low risk: “When looking at the country’s coffee producing regions, it is likely that coffee sourcing companies facilitate farmers to access key production inputs, such as plantlets, fertilizer and agrochemicals, and to services, such as credit and market information” (Expert survey, 2020).”

Source: Rainforest Alliance, 2020

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5.2 Major coffee companies in Vietnam and their sustainability policies

The research team searched for the top 10 coffee companies in Vietnam based on asset size or sales, considering market segments and turnover factors. However, there is no information found. Therefore, the research team tried to explore other sources such as academic research and trusted online resources as an alternative.

We found Number of exporting Vietnamese coffee companies, there are 72 companies in total. In Table below, shows the top 10 key players in Vietnam coffee companies’ export sector (International Trade Centre, 2022). prepared by The International Trade Centre (ITC) are websites offering reliable market information, Trade Map, statistics for international business development.

Table 25 Vietnam companies in roasted coffee sector (sort by turnover) Company Name

Turnover (USD)

Olam Vietnam Limited

778,906,386

Masan Consumer Corporation

454,606,335

Daklak September 2nd Import - Export Company Limited

258,116,527

Intimex My Phuoc Joint Stock Company

256,460,514

DTK Corporation

240,855,075

Trung Nguyen Group Corporation

182,059,119

Minh Tien Coffee Import Export Company Limited

176,235,930

Hoang Gia Luan Trading Service Company

173,031,192

Phucsinh Corporation

167,429,487

Vinacafé Bien Hoa Joint - Stock Company

133,190,135

Source: Trademap.org

Chains Issues and Sustainability Policies in South And Southeast Asia 102 I Supply

The research team chooses the top 5 companies, considering turnover, from the list above to explore their policies as follows:

Olam Vietnam Limited Olam is a large food and agriculture company that operates in 60 countries and supplies food and industrial raw materials to customers, specializing in post-harvest crop activities. In 1997, established Olam Vietnam Limited (“Olam Vietnam”) was operated by Olam International Limited (Olam Group, 2022) Olam Vietnam is now the biggest exporter of cashews, pepper, and instant coffee in Vietnam, having invested in a cutting-edge instant coffee plant and employs 7,500 people across 9 large factories in Central and South Vietnam. They have a 2 million farmer network and are one of the top exporters of green coffee. (Business Media International, 2022) In January 2020, Olam’s transformational Re-organization and Olam Food Ingredients (“OFI”) is a new trade name of Olam that focuses exclusively on Agribusiness.

The research team found that Olam Vietnam operates in accordance with the policy of the originating company Olam Group. Olam has policies that consider human rights, labor rights, smallholders, and suppliers. Some of the policies are, for example, the coffee business operational footprint that promotes local employee employment, Figure in below. (World Agroforestry Centre., 2017) The details of each policy announcement are as follows:

Human rights In addition to complying with local laws and statutory requirements in individual countries where we operate, Olam has commitment to human rights in the fair employment policy and code of conduct which is in line with the United Nations Guiding Principles on Business and Human Rights (UNGPs).

Labor rights In 2019, Olam signed the Women’s Empowerment Principles (WEP) to support gender equality and women’s empowerment across operations and supply chains Supply Chains Issues and Sustainability Policies in South And Southeast Asia

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and Olam has committed to the International Labor Organization (ILO) Declaration on Fundamental Principles and Rights at Work. Also, a member of the ILO Child Labor Platform (CLP) for the implementation of the ILO Conventions in supply chains and surrounding communities. In addition, Olam is affiliated with the Fair Labor Association (FLA), strengthening processes and monitoring systems in the product supply chain to prevent and protect children by tackling the root causes improving the livelihoods of farmers and their families, and supporting better access to education.

In 2020, Olam joined other world-leading companies as a member of the Business Sounding Board at the Global Child Forum to support progress toward achieving the UN Sustainable Development Goals (SDGs) as they relate to children’s rights and contribute to the well-being of the world’s children.

Smallholders Olam committed to the principle of Free, Prior, and Informed Consent (FPIC) which is outlined in the Living Landscapes Policy (Olam Group, 2018) to operate and support activities that are making tangible differences on the ground to improve livelihoods and deliver better living standards for farmers and rural communities.

Such as Olam’s ongoing assistance to smallholder farmers and communities in fragile nations. During Covid-19, local market closures and decreased demand from small traders impacted smallholder farmers’ revenues. Olam’s mission is to protect farmers while also promoting inclusive and sustainable agricultural value chains. Olam received funding from the Asian Development Bank (ADB) in 2020 to help smallholder farmers in Vietnam, Indonesia, and Papua New Guinea. (Olam Group, 2020) And 3,500 smallholder coffee farmers in Vietnam are the number getting help from funds in this project (Asian Development Bank, 2022) Suppliers For the Supplier Code of Conduct, Olam expects its suppliers and business partners to adhere to the same criteria. They are also a signatory to the United Nations Global Compact (UNGC). Therefore, the company recognizes the importance of working with our suppliers to develop supply chains that respect people and human rights where no children or adults are subject to illegal, forced, abusive, or dangerous labor practices.

Chains Issues and Sustainability Policies in South And Southeast Asia 104 I Supply

Although more projects are promoted and presented in Africa than in any other region. Few policies have been formed in Vietnam, one of which is an interesting presentation concerning women’s work rights e.g., OFI supports breastfeeding workplaces throughout Vietnam. (Tessler, 2022) There is also a project “Atsource” (Olam Group, 2022), the award-winning sustainability insights platform powered. It allows to greater visibility results in development plans crafted to meet farmer needs, and more accurate reporting on sustainability, social justice, and other positive business indicators. Connect of over 550k farmers in over 30 country, rural farming and boosting traceability, so that farmers and other participants in the supply chain can maximize the effectiveness of their efforts. And the project “Coffee LEN” (Olam Group, 2022) about consumers detailed insights into the journey of ingredients and the lives of the people who are involved in producing them, covering 18 countries, to improve economic opportunity, education and skills, climate action and ecosystems in the coffee sector.

Figure 7 An Introduction Olam Vietnam Limited, 2017 Coffee Business Operational Footprint Procurement

4 Branches : Lamdong, Gialai, Daklak & Daknong, Son La

Cover 87% of Rob & 70% of Ara Prod Areas Mkt Share -8% BR Pleiku

Processing

Lamdong, Daklak, Input: 2.4 k MT Gialai, Dong Nai p.d.

Storage Throughput: Son La, Lamdong, 15k MT p.m.

Gialai, Daklak, Daknong Nong & Dong Nai

Sources: World Agroforestry Centre

Daknong PR

WM Me Linh

BR Di Linh

People

Staff : 213 Casual Labor : 300+

BR Buon Ma Thout

Song May WH 209 Local Staff

HQ HCM Office

Full Branch Operations Full Branch Operations

Supply Chains Issues and Sustainability Policies in South And Southeast Asia

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Olam is activity supporting these 5 UN Sustainable Development Goals

Olam’s purpose Our Purpose of ‘Growing Responsibly’ describe how we do business.

We ensure profitable growth is achieved in an ethical, socially responsible and environmentally sustainable manner.

This is integral to our business model and is quite simply the right thing to do.

Sources: World Agroforestry Centre

Masan Consumer Corporation Masan Consumer is a food and beverage manufacturer and distributor that was created in 1996. Masan Consumer Corporation, formerly known as Masan Food Corporation until 2011, is a subsidiary of Masan Consumer Holdings Company Limited (MCH), one of Vietnam’s major domestic diversified Fast Moving Consumer Goods (FMCG) firms. And last year received the Community Initiative Award at the Asia Corporate Excellence and Sustainability Awards (ACES). (Vietnamnews, 2021) To consider the company’s policies, the research team find that the company does not mention human rights and suppliers in its policies.

On the website, the company states to welfare and training are provided for the employee about fair compensation and rewards for their work and contributions.

(Masan Group, 2020) Masan’s concern about their environmental footprint has a lot of importance, many environmental policies try to be responsible for nationwide compliance and monitoring of environmental laws and regulations. (Masan Group, Chains Issues and Sustainability Policies in South And Southeast Asia 106 I Supply

2020)Regarding smallholders’ policies, they pledge to enhance the livelihoods of the community and work with local inhabitants in each of the operating subsidiaries. To build a win-win relationship that will emit potential and make contributions to individuals and society both on a local and national scale.

Daklak September 2nd Import-Export Co. (Simexco Daklak) One of the main Vietnam coffee exporters is a state-owned enterprise, and Vietnam is the world’s largest Robusta producer. It is also known as Simexco Daklak, which established a dynamic purchasing network directly from farm gates and plants in 1993.

In addition, has invested in advanced coffee processing factories, personnel training, and quality control systems in Vietnam’s critical coffee-growing areas. Export each year accounts for 8% of Vietnam’s coffee production. (Simexco Daklak, 2020) This company is a manufacturer and exporter of green coffee beans and black pepper, considered by all stakeholders as the leading reputable exporter in Vietnam. Asia, the EU, and the United States are the primary markets. To explore the company’s policies related to human rights, labor rights, smallholders, and suppliers, the research team find that the company does not mention human rights and labor rights in its policies.

However, the company publicly commits smallholders to support the well-being development of the community, e.g., no use of child labor, and equal treatment among women labor empowerments. Simexco Daklak mentions the implementation of building a supply chain model from the farm gate to consumers, with the aim of “together with farmers to develop”, for creating value for community development of all stakeholders in the supply chain and bringing consumers closer to sustainably produced through operating under Verified Sourcing Areas (VSAs). This statement can be implied that the company has policy for smallholders.

Intimex My Phuoc Joint Stock Company Established in 2009, doing business is name Intimex My Phuoc, one of the branches Intimex Group Joint Stock Company, a Vietnam supplier of coffee beans, specializing in processing, trading, and exporting green beans coffee and coffee roasters.

On the company website, they pledge to use sustainable approaches to reduce the environmental effect of coffee cultivation and processing. Also, prioritize collaborations with charitable groups whose aim is to promote the health and economic well-being Supply Chains Issues and Sustainability Policies in South And Southeast Asia

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of farmers and their families which over 15,000 households of farmers participating in the sustainable coffee program. (Intimex group, 2021) This statement can be implied that the company has policy for smallholders.

The company’s policies focus on the quality of the products, especially sustainable coffee programs, so a lot of certified by many standards such as HACCP, 4C, and UTZ. Furthermore, being accredited on the Rainforest Alliance’s 2021 Sustainable Agriculture Standard (Intimex My Phuoc, 2022) signifies that the policies of Intimex My Phuoc are important based on human rights, labor rights, and suppliers. Such as, farmers and farm workers, their families, and local communities receive improving their livelihoods and full respect for human rights. Including having grievance mechanisms that enable whistleblowers to file complaints about how certain corporate operations have harmed them. Members of the group can safely report acts of violence against human rights and other problems. These standards are consistent with the UN Guiding Principles on Business and Human Rights (UNGPs). And Operations across the supply chain of the certified crop are by the ILO treaties and other multi-stakeholder ideas, such as the Living Wage. As a result, human rights violations such as child labor, forced labor, discrimination, or workplace violence and harassment are prohibited on Rainforest Alliance Certified farms. (Rainforest Alliance, 2020)

DTK Corporation DTK Corporation operating in agricultural exports for more than 16 years (DTK Corporation, n.d.), does business in the import and export of agricultural products, livestock, and food production, mainly supplied to the United States more than 89.5% of shipments. (Panjiva, 2022) DTK Trading Company Limited began with the veterinary medication business in 1988, when Vietnam’s livestock sector was still in its infancy, and expanded its business scale to the field of animal feed manufacturing in 2000.

Until 2015, DTK increased its investment in the development of a modern livestock production system: 3F (Feed-Farm-Food), (DTK Corporation, n.d.) in which it engaged in all stages of the system to distribution and production.

To consider the company’s policies, the research team find that DTK had received a certificate of “Excellent enterprise for farmers” in 2015 (DTK Corporation, 2016) to honor organizations with high-quality products, rural and agricultural development Chains Issues and Sustainability Policies in South And Southeast Asia 108 I Supply

on new models, scientific research, and technological development projects applied to produce. Further, the company states its mission and vision on the website to create and supply safe foods with high nutritional values to the community, apply the modern automatic in-line production chain of safe food production and distribution, help Vietnamese consumers achieve and maintain health and well-being by supplying safe foods and improving the food quality, long-term benefits care for employees, shareholders and partners. (DTK Corporation, n.d.).

Meanwhile, the research team tries to search for information from other sources but we could find no information on any policies that are relevant to human rights and labor rights.

Table 26 Policies of top 5 coffee companies in Vietnam

Human Rights

Olam Vietnam Ltd

Masan Consumer Corporation

Daklak September 2nd Import Export Company Limited

The company recognizes its role and responsibility in respecting human rights in its operations and in its global value chain.

n.a.

n.a.

Intimex My Phuoc Joint Stock Company Certified by Rainforest Alliance’s 2021 Sustainable Agriculture Standard which means they value improving farmers and farm workers, their families, and local communities’ livelihoods and fully respect human rights.

These standards are consistent with the UN Guiding Principles on Business and Human Rights.

DTK Corporation n.a.

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Labor

Olam Vietnam Ltd

Masan Consumer Corporation

Committed to Fair Employment Policy, sets commitment to ensure that all employees are treated with dignity and fairness, and to protecting the rights of staff in workplaces.

It is aligned with the ethos of Growing Responsibly and is in full compliance with the conventions of the International Labor Organization (ILO) and United Nations Global Compact’s (UNGC) guiding principles on human rights and labor.

The company commits to fair compensation and rewards for employee contributions, welfare, and provides training for employees.

Chains Issues and Sustainability Policies in South And Southeast Asia 110 I Supply

Daklak September 2nd Import Export Company Limited

Intimex My Phuoc Joint Stock Company

Group members, workers, staff, and other stakeholders can safely report violence against human rights and grievances on any other issues. States that grievance mechanisms are accessible, in local languages, including for those who cannot read or do not In 2021, Simexco have access to the Internet. launched the program “Gender equality empowering to female farmers on coffee farms” and training to improve household economic management capacity for women. (Simexco Daklak, 2021) To motivation for female farmers to realize their roles in participating in sustainable farming on coffee farms.

On the website, the company publicly commits to supporting the well-being development of the community in which health care service for labor and labor safety has been improved continuously, e.g. equal treatment of women.

DTK Corporation n.a.

Smallholders

Olam Vietnam Ltd

Masan Consumer Corporation

The company has a policy to focus on networking and engaging with local smallholder farmers, as they are important production workers for the company.

Committed to enhancing community livelihoods and working with residents in each of the operational subsidiaries.

Aims to tackle challenges and the key issues facing the coffee supply chain by 2025, enabled through structured collaboration with partner farmers.

Daklak September 2nd Import Export Company Limited Simexco has been building a purchasing network directly since the beginning, with the aim of “together with farmers to develop”, for creating value for community development of all stakeholders in the supply chain.

Intimex My Phuoc Joint Stock Company

DTK Corporation

Prioritize cooperation with charitable organizations whose goal is to enhance the health and economic well-being of farmers and their families, with over 15,000 farmer households participating in the sustainable coffee program.

Awarded “Excellent enterprise for farmers” in 2015.

To recognize organizations that generate high-quality products, rural and agricultural development on innovative models, scientific research, and technology development initiatives.

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Suppliers

Olam Vietnam Ltd

Masan Consumer Corporation

The company is certified by many standards e.g., UTZ certified, a program and a label for sustainable farming.

n.a.

To aim to build long-term relationships with suppliers based on responsible business practices and trust.

Project “Atsource”, the award-winning sustainability insights platform powered by Olam. Packed with verified data, it connects them directly to the source of supply at each stage of the coffee’s journey, guaranteeing traceability; also includes third party risk assessments on relevant sustainability topics. For example, the UNICEF Rural Child Labor or WRI Aqueduct Country Ranking.

Source: Respective company websites Chains Issues and Sustainability Policies in South And Southeast Asia 112 I Supply

Daklak September 2nd Import Export Company Limited To establish Verified Sourcing Areas (VSAs) to ensure the supply of sustainable commodities at a competitive price and scale to improve agricultural sustainability.

Intimex My Phuoc Joint Stock Company Certified by Rainforest Alliance’s 2021 Sustainable Agriculture Standard which includes supplier responsibility.

DTK Corporation n.a.

5.3 Trade information The research team collected information regarding top major destinations of exports from top 5 companies mentioned in the previous section, as well as trade information regarding top export destinations overall for the whole country.

Information on top export destinations at both company level and country level can be found in the following tables.

Table 27 Top countries that the top coffee companies in Vietnam export their products to Company

Export Destination

Source

Olam Vietnam Limited

Major markets are United States of America (North America), United Kingdom, Netherlands, Denmark, France (Europe), Indonesia, Thailand, Greater China (Asia).

(Manufacturing in 6 countries United States of America, Peru, Egypt, China, India, and Vietnam)

Olam Investor Relations. (2017).

Olam SVI: Replicating success across regions. OlamInsights, 2, 8. https://www.olamgroup.com/content/ dam/olamgroup/files/uploads/ IRfiles/Olam_Insight_Issue2_ April2017_Web.pdf.

Masan Consumer Corporation

Major markets are Thailand, Cambodia, Canada, United Export Genius. (2021). Masan States of America, and Russian federation.

Consumer Corporation is an Exporter in Vietnam. Bill of Lading Data of Masan Consumer Corporation. https://www.exportgenius.in/ masan-consumer-corporationexporter-in-vietnam

Daklak Export each year accounts for 8% of Vietnam's coffee Simexco Daklak. (2020). Sustainability.

September 2nd production. Major markets such as Asia, the EU, and Retrieved from https://simexcodl.

Import - Export United States of America. com.vn/en/sustainability/ Company Limited Intimex My Phuoc Joint Stock Company

North America, Southeast Asia, Africa, and the Middle East Business Directory. (2015). Intimex My Phuoc Joint Stock Company.

Listcompany. https://www.listcompany.org/ Intimex_My_Phuoc_Joint_Stock_ Company_Info.html

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Company

Export Destination

DTK Corporation

Source

The United States of America accounted for more than Panjiva. (2022). Supply Chain 89.5% of all shipments from DTK Corporation in 2017. Intelligence about: Dtk Corporation.

Retrieved from Panjiva - Global The United States of America, Germany, Egypt, and Italy Trade Insights: https://panjiva. are the top four export destinations according to the March com/Dtk-Corporation/28360106 12, 2022 report.

Volza. (2022, March 12). Dtk Corporation Number 11 Alley 74 Truong Chinh’s buyers, suppliers, price, shipments. Dtk Corporation Number 11 Alley 74 Truong Chinh. https://www.volza.com/ company-profile/dtk-corporationnumber-11-alley-74-truongchinh-30044414/

Source: Respective websites

Table 28 Top 10 countries that imported coffee from Vietnam in 202121 % of world import

Germany

Import Value (Thousand USD) 388,001

United States of America

282,643

12.17

Italy

232,942

10.03

Japan

182,905

7.88

Spain

177,747

7.65

Russian Federation

163,195

7.03

United Kingdom

95,204

4.10

Belgium

88,225

3.80

Thailand

85,938

3.70

Malaysia

80,810

3.48

World

2,322,480

100.00

Market

16.71

Source: International Trade Centre (2022)

21 International Trade Centre. (2022). Compare Markets For product 0901 – Coffee, whether or not roasted or decaffeinated; coffee husks and skins; coffee

substitutes containing coffee in any proportion Exported from Viet Nam. Market Access Map. https://www.macmap.org/en/query/compare-market? reporter=All&partner=704&product=0901

Chains Issues and Sustainability Policies in South And Southeast Asia 114 I Supply

Top 10 countries that imported coffee from Vietnam in 2021

Others

23.5% 3.5% 3.7% Thailand 3.8% Belgium 4.1%

Malaysia

United Kingdom

Germany

16.7% USA

12.2% Italy

10% Russian

Japan

7.0% Spain 7.9% 7.7%

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6

RICE SUPPLY CHAIN IN THE PHILIPPINES, THAILAND, AND VIETNAM Chains Issues and Sustainability Policies in South And Southeast Asia 116 I Supply

Rice supply chain in The Philippines, Thailand, and Vietnam Rice is one of the most important foods in humanity’s food chain (Prakarsa, 2022). In 2020, 503 million tons of rice was consumed in the world, especially in Asian countries accounting for approximately 82% of global rice consumption. In addition, rice imports and export in the world are mainly conducted through international trading companies (USDA, 2021).

Table 29 Global rice production and consumption in 2020 (million ton) Country

Production

Consumption

Export

Import

China

148.990

155.440

6.450

Indonesia

34.400

103.500

69.100

Bangladesh

35.850

36.500

650

Japan

7.640

35.200

27.560

Vietnam

27.331

21.500

Philippines

12.474

15.200

Thailand

19.650

13.000

6.650

Burma

12.352

10.500

1.852

Korea, South

3.882

8.200

4.318

Brazil

7.140

7.300

160

Nigeria

5.255

7.250

1.995

Nepal

3.417

4.717

1.300

Cambodia

5.862

4.400

1.462

India

129.000

4.250

124.750

Pakistan

8.700

4.100

4.600

World Total

509.314

503.567

5.831 2.726

Source: USDA (2021)

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The idea of value chain in rice commodity is to increase the share of value by the farmers from production to consumption. The rice value chain mainly consists of farmer, milling factory, collectors/enterprise, retail traders, broker, and exporters (Othman, Z, 2012). Prakarsa (2022) uses the case of value chain in 3 ASEAN countries including Thailand, Philippines, and Vietnam.

Rice value chain in Thailand In Thailand, Farmers as the primary of rice production, to community/local rice cooperatives or rice collection depots, to provincial rice mills/SMEs and to the exporting companies, as shown in Figure 8.

Figure 8 The rice value chain in Thailand Activity

Harvest/Production

Aggregation

Processing

Marketing

Storage

Dry Process / Milling

Supermarket / Food Service Industry

Cooperatives

Rice Mills / SMEs

Domestic / Export

Seedings Fertilizer

Paddy

Pesticides

Actor

Farmers

Selling inputs including seeds, fertilizer, and pesticides Source: Prakarsa (2022)

Rice Value Chains in The Philippines In Parkarsa’s report, rice value chains in the Philippines starts with the gathering of needed inputs and labor to prepare the field for planting and ends with the consumption of ready to cook milled rice. The main chain actors are competing farmers, palay22 traders, millers, and rice traders that including brokers in palay aggregation and rice distribution (Prakarsa, 2022).

22 Unhusked rice Chains Issues and Sustainability Policies in South And Southeast Asia 118 I Supply

Figure 9 The rice value chain in The Philippines Activity

Harvest/Production

Aggregation

Processing

Marketing

Storage

Dry Process / Milling / Storage

Supermarket / Food Service Industry

Palay Trader

Rice Miller

Rice Retailer Rice Wholesaler-Retailer Rice Wholesaler Agent/Assembler

Seedings Fertilizer

Palay

Pesticides

Actor

Farmers

Source: Prakarsa (2022)

Rice Value Chains in Vietnam In Parkarsa’s report, the rice value chain in Vietnam at the production stage is the same in almost all rice producing countries. But what makes the difference is the length of the trade chain and the actors involved (Prakarsa, 2022).

Production: Rice is grown in most provinces across the country in Vietnam.

The most important rice-producing regions in the country are the Mekong Delta (accounting for 56% of production), the Red River Delta (16% of output), and the North Central and Central Coast regions (15% of output).

Milling: Three types of milling operations are involved in the production of rice in Vietnam: specialized milling operations (pure millers), specialized polishing operations (polishers), and integrated milling and polishing operations (miller polishers).

Trade: Rice traders are usually involved in the trade of other goods and services, and also may be involved in other parts of the marketing chain as farmer/ collectors, farmer/retailers, miller/collector/wholesalers or wholesalers/ retailers.

Storage: Most of the storage is done by the small mills because they have to peel the grain before selling the brown rice to the larger mills for processing.

Marketing: PHTI identified five separate channels of distribution for rice in the Mekong River Delta alone (PHTI-HCMC 1999).

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Figure 10 The rice value chain in Vietnam Activity

Harvest/ Production

Actor

Farmers

Aggregation

Pure Millers Polishers Miller-polishers

Private Trader

Source: Prakarsa (2022)

Processing

First Channel

Domestic/Export

Provincial Food Companies

Second Channel

Marketing/Distribution

Third Channel

Wholesaler

Fourth Channel

Fifth Channel

6.1 Key issues found in report

The research team summarizes key issues from Prakarsa’s report as follows.

The rice trading company The rice commodity chain is controlled and coordinated by large private trading companies. In addition, rice is exported by state-owned rice companies or other government institutions. State-owned trading companies play an important role in conducting transactions based on rice trade agreements between governments (G2G).

Farmer’s losses and damage due to weather/climate Sustained income losses of rice farmers over a long period of time could happen due to the risk that the combination of rice imports and crop destruction from climate change may eventually force them to give up planting rice altogether, threatening the country’s food security. As no country is immune to the impact of climate change, traditional rice-exporting countries would need to prioritize their own food security at some point.

Chains Issues and Sustainability Policies in South And Southeast Asia 120 I Supply

Poverty in the agricultural sector Social welfare and health insurance are not provided as labor and migrant workers are not seen as permanent workers. While these rice farmers have no more land to expand rice production, traders and wholesalers can go to as many farmers as they can to buy more rice to make larger profit margins.

The condition of “invisible” stakeholders, or the farm workers who are hired as planters or harvesters, is worse. On average, they have to contend with only P200-300 a day, being employed only during planting or harvest seasons, which last for only several weeks in a year.

Gender in agricultural sector Gender is not seen as an ‘issue’ at the farmer level but more on working together for the survival of a household. There have been little gender-sensitive policies addressed at the cooperative, SMEs, and the export company. Women have been employed in administrative and finance-related tasks and units.

SMEs The price does not reflect the total costs farmers have invested, especially the investment to respond to climate impacts, which are strongly felt by the farmers. Social and environmental costs are pushed and become an additional burden for farmers and those unassociated with SMEs and the export company.

These external costs are not addressed at the SMEs and export company levels.

Environmental issues and health Environmental issues are not seen as the primary concern at SMEs and export companies but as cost savings and profit maximization. This raises concerns that for many smaller companies, being ‘green’ is meant to increase profits rather than driving more sustainable consumption.

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6.2 Major rice companies in Thailand and their sustainability policies

To consider policies of major rice companies in Thailand, the research team search for top 5 companies in the industry by export volume. The website of the Asia Gold Rice Co.,Ltd. (2021) has ranked the list of companies as shown in table below.

Table 30 Thailand top 5 rice exporter Company name

Volume (Metric ton)

Asia Golden Rice Co.,Ltd.

792,873

Capital Rice Co.,Ltd.

649,443

C.P.Intertrade Co.,Ltd.

471,715

Golden Granary Co.,Ltd.

345,478

Thai Hua (2511) Co.,Ltd.

240,669

Source: Asia Gold Rice Co.,Ltd. (2021)

The research team chooses top 5 companies, considering by export volume, from the list above to explore their policies as follows.

Asia Golden Rice Co.,Ltd. The Group of Asia Golden Rice Co., Ltd was established in 1999. The company is processor, storage, and exporter of rice products. The company’s policies mainly focus on quality in production with modern machines (Asia Gold Rice Co.,Ltd., n.d.).

The research team does not find any policies relevant to human rights, labor rights, smallholders, and suppliers on the company’s website.

Capital Rice Co.,Ltd. Established in 1977, Capital Rice Co. Ltd. is processor, storage, packer, and exporter of rice products. The company’s policies mainly focus on quality in production with modern machines through HACCP quality standard system and ISO9002 standard Chains Issues and Sustainability Policies in South And Southeast Asia 122 I Supply

which requires quality management, human resource specific training programs and performances (Capital Rice, n.d.). The research team does not find any policies relevant to human rights, labor rights, smallholders, and suppliers on the company’s website.

C.P.Intertrade Co.,Ltd. C.P.Intertrade Co.,Ltd. is the joint venture under the control of Charoen Pokphand Group established in 1979. The company is processor, storage, packer, and exporter of rice products (C.P.Intertrade Co., Ltd., n.d.).

To explore the company’s policies related to human rights, labor rights, smallholders, and suppliers, the research team find that the policy of Charoen Pokphand Group – who is controller of C.P.Intertrade Co.,Ltd – mention about human rights, labor rights, smallholders, and suppliers in its policies.

The company publicly commits to respect for human rights across activities and business relationships. That reflected adherence to the United Nations Universal Declaration of Human Rights (UNDHR), the Ten Principles of the United Nations Global Compact (UN Global Compact), UN Guiding Principles on Business and Human Rights (UNGPs), the International Labor Organization’s (ILO) Declaration on the Principles and Fundamental Rights at Work and local labor laws in each country where the company operates (C.P. Group, n.d.).

The company has established policy and guidelines on human rights and labor practices which are applicable to all business units within the company in controller.

Moreover, the company are communicated that policy and guideline through Code of Conduct which applies to company in controller and code of conduct for business partners which is applied to business partners of company (C.P. Group, 2020).

Golden Granary Co.,Ltd. Golden Granary Co.,Ltd. has been in operation since 2000. The company is processor, storage, packer, and exporter of rice products. The company’s policies mainly focus on quality in production. Now the company export its products to many countries, Supply Chains Issues and Sustainability Policies in South And Southeast Asia

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such as African continent, Russia, Asia (Golden Granary Co., Ltd., n.d.). The research team does not find any policies relevant to human rights, labor rights, smallholders, and suppliers on the company’s website.

Thai Hua (2511) Co.,Ltd. Group of Thai Hua (2511) Co.,Ltd. is processor, storage, packer, and exporter of rice products. The company’s policies mainly focus on quality in production with modern machines through GMP and HACCP quality standard system (Thai Hua (2511) Co., Ltd., n.d.). The research team does not find any policies relevant to human rights, labor rights, smallholders, and suppliers on the company’s website.

Table 31 Policies of top 5 rice companies in Thailand Asia Golden Rice Co.,Ltd.

Capital Rice Co.,Ltd.

C.P.Intertrade Co.,Ltd.

Golden Granary Co.,Ltd.

Thai Hua (2511) Co.,Ltd.

Human Rights

n.a.

n.a.

n.a.

n.a.

Labor

n.a.

n.a.

The company publicly commits to respect for human rights across activities and business relationships.

That reflected adherence to UNDHR, UN Global Compact, UNGPs, ILO Declaration on the Principles and Fundamental Rights at Work, and local labor laws in each country where the company operates.

n.a.

n.a.

Smallholders

n.a.

n.a.

n.a.

n.a.

n.a.

Chains Issues and Sustainability Policies in South And Southeast Asia 124 I Supply

Suppliers

Asia Golden Rice Co.,Ltd.

Capital Rice Co.,Ltd.

C.P.Intertrade Co.,Ltd.

Golden Granary Co.,Ltd.

Thai Hua (2511) Co.,Ltd.

n.a.

n.a.

Code of Conduct for business partners stipulates that suppliers must comply with company policies.

n.a.

n.a.

Source: Respective company websites

6.3 Major rice companies in The Philippines and their sustainability policies

To consider policies of major rice companies in the Philippines, the research team uses the data from Trade Map which provide trade statistics on imports and exports by product group and across 200 countries (International Trade Centre, 2022). Trade Map provides the list of Philippines companies in rice sector. There are 4 companies in total, but only 3 companies that have the data on turnovers which are shown in table below.

Table 32 Philippines top 10 rice company Company name

Turnover (USD)

Cagayan Agro-Industrial Pioneer Co., Ltd

5,854,851

Philja Arrastre Stevedoring Allied and General Services

1,665,300

Meraput Agricultural Development Inc.

666,120

Don Bosco Multi-Purpose Cooperative

N/A

Thai Hua (2511) Co.,Ltd.

240,669

Source: trademap.org

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However, the research team did not find any information on policies of any of the 4 companies on the internet. It was therefore not possible to know whether any of the 4 companies had any policies relevant to human rights, labor rights, smallholders, and suppliers.

Table 33 Policies of top 5 rice companies in the Philippines Asia Golden Rice Co.,Ltd.

Capital Rice Co.,Ltd.

C.P.Intertrade Co.,Ltd.

Golden Granary Co.,Ltd.

Thai Hua (2511) Co.,Ltd.

Human Rights

n.a.

n.a.

n.a.

n.a.

n.a.

Labor

n.a.

n.a.

n.a.

n.a.

n.a.

Smallholders

n.a.

n.a.

n.a.

n.a.

n.a.

Suppliers

n.a.

n.a.

n.a.

n.a.

n.a.

6.4 Major rice companies in the Vietnam and their sustainability policies

To consider policies of major rice companies in the Vietnam, the research team uses the data from VietnamCredit website which stated that top 10 companies in the industry by export turnover (Vietnamcredit, 2022) as shown in table below.

Table 34 Vietnam top 10 rice exporters Company name

Turnover (USD)

Intimex Group Joint Stock Co.,

30,836,000

Vietnam Northern Food Corporation Ltd.

21,576,000

Thanh Tin Service and Trade Co., Ltd.

17,672,000

Orient Rice Co., Ltd.

12,673,000

Hiep Loi Joint-Stock Co.,

10,666,000

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Company name

Turnover (USD)

Gia International Corporation

10,549,000

Trung An Hi-Tech Farming Joint-Stock Co.,

7,728,000

An Giang Import-Export Co.,

7,643,000

Phat Tai Co., Ltd.

7,624,000

Louis Rice Trading Production One Member Co., Ltd.

6,369,000

Source: Vietnamcredit (2022)

There is no publicly available sustainability policies of top 5 companies by turnover from the above table. Their short descriptions are listed below.

Intimex Group Joint Stock Co., The Intimex Group Joint Stock Co., was established in 1995. The company is processor and exporter of rice and many agricultural products. The company’s policies mainly focus on quality in production through HACCP, CODEX, and ISO9001 quality standard system (Intimex Group, n.d.). However, the company has a sustainable agricultural policy, but the research team does not find any policies relevant to human rights, labor rights, smallholders, and suppliers on the company’s website.

Vietnam Northern Food Corporation Ltd. Vietnam Northern Food Corporation Ltd. was established in 1995 by Prime Minister of Vietnam. The company is processor, packer, and exporter of rice products. The company’s policies mainly focus on quality in production. Moreover, the company implementing corporate social responsibility to promote the support of repayment funds, to supporting the poor, and to storm and flood subsidies (Vinafood1, n.d.). the research team does not find any policies relevant to human rights, labor rights, smallholders, and suppliers on the company’s website.

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Thanh Tin Service and Trade Co., Ltd. Established in 2010, Thanh Tin Service and Trade Co., Ltd. is processor, packer, and exporter of rice products. The Company’s has been exported to many countries such as HongKong, China, Malaysia, Philippines, and United States. The company’s policies mainly focus on quality in production through the most modern processing technology of milling. (Thanh Tin Service and Trade Co., Ltd., n.d.). the research team does not find any policies relevant to human rights, labor rights, smallholders, and suppliers on the company’s website.

Orient Rice Co., Ltd. Orient Rice Co., Ltd. was established in 2013 and is a joint venture company between Vietnam Northern Food Corporation and Louis Dreyfus Company. The company is processor, packer, and exporter of rice products. Now the company export its products to many countries, such as Philippines, Malaysia, China, Indonesia, Iraq, Cuba, Ivory Coast, and Ghana (Orico, 2018). However, the research team does not find policy on the company’s products and any policies relevant to human rights, labor rights, smallholders, and suppliers on the company’s website.

Hiep Loi Joint-Stock Co., Hiep Loi Joint-Stock Co., was established in 2004. The company is processor, packer, and exporter of rice products. The Company’s has been exported to many countries such as HongKong, China, Malaysia, Philippines, and Africa. The company’s policies mainly focus on quality in production through HACCP quality standard system and ISO9001 standard (Hiep Loi Joint-Stock Co., , n.d.). the research team does not find any policies relevant to human rights, labor rights, smallholders, and suppliers on the company’s website.

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Table 35 Policies of top 5 rice companies in the Vietnam Vietnam Thanh Tin Intimex Group Northern Food Service and Joint Stock Corporation Trade Co., Ltd. Co., Ltd.

Orient Rice Co., Ltd.

Hiep Loi Joint-Stock Co.,

Human Rights

n.a.

n.a.

n.a.

n.a.

n.a.

Labor

n.a.

n.a.

n.a.

n.a.

n.a.

Smallholders

n.a.

n.a.

n.a.

n.a.

n.a.

Suppliers

n.a.

n.a.

n.a.

n.a.

n.a.

Source: Respective company websites

6.5 Trade information

The research team collected information regarding top major destinations of exports from top 5 companies mentioned in the previous section, as well as trade information regarding top export destinations overall for the whole country.

Information on top export destinations at both company level and country level can be found in the following tables.

Table 36 Top countries that the top rice companies in Thailand, Philippines, and Vietnam export their products to Company

Export destination

Source

Thailand Asia Golden Rice Co.,Ltd.

n.a.

Capital Rice Co.,Ltd.

n.a.

C.P. Intertrade Co.,Ltd.

North America, Canada, Europe, Middle East, Oceania, https://shorturl.asia/wRgGK Hong Kong, Singapore, and Africa

Golden Granary Co.,Ltd.

n.a.

Thai Hua (2511) Co.,Ltd.

n.a.

Supply Chains Issues and Sustainability Policies in South And Southeast Asia

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Company

Export destination

Source

Philippines Cagayan Agro-Industrial Pioneer Co., Ltd

n.a.

Philja Arrastre Stevedoring Allied and General Services

n.a.

Meraput Agricultural Development Inc.

n.a.

Don Bosco Multi-Purpose Cooperative

n.a.

Vietnam

Intimex Group Joint Stock Co.,

n.a.

Vietnam Northern Food Corporation Ltd.

n.a.

Hong Kong, China, Malaysia, Philippines, and United http://www.thanhtinfood.com/ Thanh Tin en/main.html Service and States.

Trade Co., Ltd. Orient Rice Co., Ltd.

Philippines, Malaysia, China, Indonesia, Iraq, Cuba, Ivory Coast, and Ghana

Hiep Loi Joint-Stock Co.,

Hong Kong, China, Malaysia, Philippines, and Africa. http://www.hieploifood.com.vn/

Source: Respective company websites

Chains Issues and Sustainability Policies in South And Southeast Asia 130 I Supply

http://www.orico.vn/

Table 37 Top 10 countries import rice from Philippines, Thailand, Vietnam in 2021 % of world import

United Arab Emirates

Import Value (Thousand USD) Philippines23 161

Bangladesh

118

18.79

Qatar

101

16.08

Saudi Arabia

100

15.92

Kuwait

75

11.94

Bahrain

30

4.78

Canada

21

3.34

United States of America

10

1.59

Netherlands

5

0.80

Israel

2

0.32

World

628

100.00

United States of America South Africa China Niger Hong Kong Japan Angola Cameroon Benin Singapore World

Thailand24 606,353 359,934 340,157 161,755 147,686 147,558 121,326 103,020 97,993 93,187 3,634,572

16.68 9.90 9.36 4.45 4.06 4.06 3.34 2.83 2.70 2.56 100.00

Market

25.64

Supply Chains Issues and Sustainability Policies in South And Southeast Asia

I 131

% of world import

Philippines

Import Value (Thousand USD) Vietnam25 957,723

China

535,664

21.87

Malaysia

133,193

5.44

Singapore

66,484

2.71

Hong Kong

49,143

2.01

Mozambique

40,240

1.64

Republic of Korea

34,888

1.42

Indonesia Australia Saudi Arabia World

32,474 25,583 18,043 2,449,346

1.33 1.04 0.74 100.00

Market

Source: International Trade Centre (2022)

Chains Issues and Sustainability Policies in South And Southeast Asia 132 I Supply

39.10

USA 1.6% Netherlands 0.8% Israel 0.3% Others 0.8%

Canada Bahrain 3.3% 4.8%

United Arab Emirates

Kuwait

11.9%

25.6%

Saudi Arabia

15.9%

Bangladesh

18.8%

Qatar

16.1%

Philippines USA

Others

16.7%

40.1%

South Africa

9.9% China

9.4%

Singapore 2.6% Benin 2.7% Cameroon 2.8%

4.5%

4.1% 4.1%

Angola 3.3%

Japan

Niger Hong Kong

Thailand Saudi Arabia 0.7% Australia 1% Indonesia 1.3% Republic of Korea 1.4% Mozambique 1.6%

Others

22.7% Philippines

Hong Kong 2% 2.7% Singapore Malaysia

5.4%

39.1%

China

21.9% Vietnam Supply Chains Issues and Sustainability Policies in South And Southeast Asia

I 133

7

FINDINGS AND RECOMMENDATIONS Chains Issues and Sustainability Policies in South And Southeast Asia 134 I Supply

Findings and Recommendations In order to gauge the potential risks of human rights violations and other sustainability issues in the supply chain of seafood, fisheries, tea, coffee, palm oil, and rice in South Asia and Southeast Asia as identified in PRAKARSA (2022) and SAAPE (2022) reports, the research team compared trade information with information of top 5 companies in respective supply chains, including their publicly disclosed sustainability policies and major export destinations.

Companies are highlighted in green, yellow, or blue, based on the following criteria: 1. GREEN – major companies that export to OECD or EU countries (which have the most stringent supply chain sustainability and human rights requirements vis-à-vis the non-OECD and non-EU countries) and have policies or standards in place that may serve as industry best practices.

2. YELLOW – major companies that export to OECD or EU countries, but do not yet disclose relevant policies regarding human rights, labor rights, smallholders, and suppliers.

3. BLUE – Companies that may export to OECD or EU countries, but more in-depth research is required.

The summary findings and results of applying the above criteria, by country by supply chain basis is provided in the following pages.

Supply Chains Issues and Sustainability Policies in South And Southeast Asia

I 135

Sri Lanka seafood supply chain Export destination of top 5 companies?

Top Export Destinations

% of world

OECD?

EU?

John Seafood

Lihini Seafoods

Jay Sea Foods

Alpex Marine

Blue Line Ocean

France

12.7

Y

Y

Probable (Europe is key market)

Y

Y

Probable (Europe is key market)

N/A

United States of America

11.2

Y

Y

Y

Y

Y

Y

N/A

Germany

11.2

Y

Y

Probable (Europe is key market)

Y

Y

Probable (Europe is key market)

N/A

Italy

11.1

Y

Y

Probable (Europe is key market)

Y

Y

Probable (Europe is key market)

N/A

Japan

6.6

Y

-

Y

Y

Netherlands

6.2

Y

Y

Y

Y

Hong Kong

5.5

-

-

United Kingdom

5.3

Y

-

Canada

4.0

Y

-

N/A

Israel

3.2

Y

-

N/A

Chains Issues and Sustainability Policies in South And Southeast Asia 136 I Supply

Probable (Europe is key market)

N/A Probable (Europe is key market)

N/A

N/A Probable (Europe is key market)

Y

Y

Probable (Europe is key market)

N/A

Publicly disclosed policies?

Issue

John Seafood

Lihini Seafoods

Human Rights

Claims it complies with SEDEX Members Ethical Trade Audit (SMETA)

Labor Rights Smallholders

Suppliers

Jay Sea Foods

Seafood supplier network: allocate profit margin to community

Blue Line Ocean

Alpex Marine

Staff welfare

Certified Friend of the Sea

Certified Friend Certified FIP, of the Sea and Friend of the Sea, Dolphin Dolphin Safe Safe

Pakistan seafood supply chain Export destination of top 5 companies?

EU?

B.K. Trading

SAF Marine Int'l

Blue & White Fisheries

Maritime Fisheries

Maxima Int'l

-

-

Y

Y

N/A

N/A

Y

21.9

-

-

Y

Y

N/A

N/A

Y

United Arab Emirates

6.7

-

-

N/A

N/A

Malaysia

4.6

-

-

Y

N/A

N/A

Saudi Arabia

4.3

-

-

Y

N/A

N/A

United States of America

4.3

Y

-

Y

N/A

N/A

Japan

3.4

Y

-

Y

N/A

N/A

Top Export Destinations

% of world

OECD?

China

36.6

Thailand

Y

Supply Chains Issues and Sustainability Policies in South And Southeast Asia

Y

I 137

Export destination of top 5 companies?

Top Export Destinations

% of world

OECD?

EU?

Vietnam

3.2

-

-

Korea, Republic of

2.8

Y

-

Kuwait

2.6

-

-

Singapore

N/A

-

-

Canada

N/A

Y

-

SAF Marine Int'l

B.K. Trading

Y

Y

Blue & White Fisheries

Maritime Fisheries

Maxima Int'l

N/A

N/A

Y

Y

N/A

N/A

Y

Y

N/A

N/A

Y

Y

N/A

N/A

N/A

N/A

Y

Publicly disclosed policies?

Issue

B.K. Trading

SAF Marine Int'l

Blue & White Fisheries

Maritime Fisheries

Maxima Int'l

Human Rights Labor Rights Smallholders Suppliers

Bangladesh seafood supply chain Export destination of top 5 companies?

EU?

BD Seafood

Virgo Fish & Agro Process

Y

-

N/A

N/A

Probable (EU is key market)

Y

Y

N/A

N/A

Probable (EU is key market)

Top Export Destinations

% of world

OECD?

United Kingdom

14.6

Netherlands

14.0

Chains Issues and Sustainability Policies in South And Southeast Asia 138 I Supply

Seven Oceans Group

Anraj Fish Mashud Fish Products Processing Indust.

Export destination of top 5 companies?

EU?

BD Seafood

Virgo Fish & Agro Process

Y

Y

N/A

N/A

11.3

Y

Y

N/A

N/A

Y

Probable (EU is key market)

United States of America

10.0

Y

-

N/A

N/A

Y

Y

India

6.3

-

-

N/A

N/A

Y

France

5.1

Y

Y

N/A

N/A

Hong Kong

4.9

-

-

N/A

N/A

Japan

4.0

Y

-

N/A

N/A

Russian Federation

3.1

-

-

N/A

N/A

Singapore

N/A

-

-

N/A

N/A

Top Export Destinations

% of world

OECD?

Belgium

11.6

Germany

Seven Oceans Group

Anraj Fish Mashud Fish Products Indust. Processing

Probable (EU is key market)

Probable (EU is key market)

Y

Supply Chains Issues and Sustainability Policies in South And Southeast Asia

I 139

Publicly disclosed policies?

Issue

Virgo Fish & Agro Process

BD Seafood

Seven Oceans Group

Anraj Fish Products Indust.

Mashud Fish Processing

Human Rights Labor Rights

Smallholders

Encouraging empowerment of employees, promote an environment for learning

Zero-tolerance policy toward child labor, emergency treatment, strive for benefits of female and underprivileged groups.

Ensure fair prices for shrimp farmers

Suppliers

Assisting suppliers in improving efficiency

Indonesia fisheries supply chain Export destination of top 5 companies?

PPI

Kirana Foods Int'l

Nali Ocean

-

N/A

Y

Y

Y

-

N/A

14.0

-

-

N/A

Japan

7.5

Y

-

N/A

Singapore

5.7

-

-

N/A

Top Export Destinations

% of world

OECD?

EU?

China

24.9

-

United States of America

14.3

Hong Kong

Chains Issues and Sustainability Policies in South And Southeast Asia 140 I Supply

Hasil Surya Mas Melimpah

Y

Export destination of top 5 companies?

Kirana Foods Int'l

Top Export Destinations

% of world

OECD?

EU?

Vietnam

3.4

-

-

N/A

Germany

3.1

Y

Y

N/A

United Kingdom

2.6

Y

-

N/A

Netherlands

2.5

Y

Y

N/A

Australia

2.2

Y

-

N/A

Belgium

N/A

Y

Y

N/A

Y

India

N/A

-

-

N/A

Y

Thailand

N/A

-

-

N/A

Y

Netherlands

N/A

Y

Y

N/A

PPI

Nali Ocean

Hasil Surya Mas Melimpah

Y

Y

Publicly disclosed policies?

Issue

PPI

Kirana Foods Int'l

Nali Ocean

Hasil Melimpah

Surya Mas

Human Rights Labor Rights

Develop employee competencies

One mission is to have "highly trained staff" to maintain product quality Founded on the principle "to help local and SMEs grow"

Smallholders

Suppliers

Concerned with IUU; company website provides reasonable information on traceability.

Claims to have "standard for quality control" but no reference to int'l standard.

Supply Chains Issues and Sustainability Policies in South And Southeast Asia

I 141

India tea supply chain Export destination of top 5 companies?

Amar Tea Hindustan Unilever

Organic India

Tata Wagh Bakri Consumer Tea Group Products

Top Export Destinations

% of world

OECD?

EU?

Iran

21.3

-

-

Russian Federation

12.1

-

-

United States of America

9.1

Y

-

United Arab Emirates

7.9

-

-

Germany

7.6

Y

Y

Probable (Europe is key market)

Y

United Kingdom

5.0

Y

-

Probable (Europe is key market)

Y

Japan

3.5

Y

-

Kazakhstan

3.4

-

-

Netherlands

3.0

Y

Y

China

2.7

-

-

Chains Issues and Sustainability Policies in South And Southeast Asia 142 I Supply

Y

Y

Y Y

Y

Probable (Europe is key market)

Y

Y

Publicly disclosed policies?

Issue

Amar Tea

Hindustan Unilever

Organic India

Tata Consumer Products

Human Rights

Implemented United Nations Guiding Principles on Biz and Human Rights (UNGP).

Human rights policy is aligned with UNGP and ILO principles, published Modern Slavery Statement every year since 2015.

Labor Rights

Freedom of association, access to physical and mental health support, promote equity, diversity and inclusion.

Promotes diversity and inclusion, releases annual gender pay gap report.

Smallholders

Enhance access to training by smallholders

Suppliers

Committed to improve supplier compensation to "Living Wage"

Wagh Bakri Tea Group

To support the livelihood and well-being of farmers and tribal wildcrafters across rural India.

Supplier code of conduct contains requirements on human rights and labor standards.

Supply Chains Issues and Sustainability Policies in South And Southeast Asia

I 143

Sri Lanka tea supply chain Export destination of top 5 companies?

Akbar Brothers

Empire Teas

Dilmah Ceylon Tea

Heritage Teas

Anverally & Sons

-

Likely (world's largest exporter)

Y

N/A

Y

Possible (claims global reach)

-

-

Likely (world's largest exporter)

Y

N/A

Y

Possible (claims global reach)

9.5

-

-

Likely (world's largest exporter)

China

6.8

-

-

Likely (world's largest exporter)

Azerbaijan

4.4

-

-

Likely (world's largest exporter)

N/A

Possible (claims global reach)

Libya

4.4

-

-

Likely (world's largest exporter)

N/A

Possible (claims global reach)

Japan

4.3

Y

-

Likely (world's largest exporter)

Top Export Destinations

% of world

OECD?

EU?

Russian Federation

9.9

-

United Arab Emirates

9.9

Iran

Chains Issues and Sustainability Policies in South And Southeast Asia 144 I Supply

N/A

Y

Y

N/A

N/A

Possible (claims global reach) Y

Y

Possible (claims global reach)

Possible (claims global reach)

Export destination of top 5 companies?

Akbar Brothers

Empire Teas

Dilmah Ceylon Tea

Heritage Teas

Anverally & Sons

-

Likely (world's largest exporter)

Y

N/A

Y

Possible (claims global reach)

-

-

Likely (world's largest exporter)

N/A

Y

Possible (claims global reach)

Y

Y

Likely (world's largest exporter)

N/A

Y

Possible (claims global reach)

Top Export Destinations

% of world

OECD?

EU?

United States of America

4.2

Y

Saudi Arabia

4.1

Germany

3.6

Y

Publicly disclosed policies?

Issue

Human Rights Labor Rights

Akbar Brothers

Empire Teas

Dilmah Ceylon Tea

Has human rights policy to mitigate risks in supply chain.

Policy includes labor issues including no child labor, no forced labor, diversity, workplace safety, wages and freedom of bargaining.

Heritage Teas

Anverally & Sons

Certified EU Organic, FairTrade, USDA, Rain Forest Alliance, JAS Organic, UTZ, GMP, etc.

Supply Chains Issues and Sustainability Policies in South And Southeast Asia

I 145

Publicly disclosed policies?

Issue

Akbar Brothers

Dilmah Ceylon Tea

Empire Teas

Smallholders

Committed to “engaging with stakeholders, including smallholders on human rights issues.

Suppliers

Committed to “encourage suppliers to uphold principles in human rights policy.”

Anverally & Sons

Heritage Teas

Certified EU Organic, FairTrade, USDA, Rain Forest Alliance, JAS Organic, UTZ, GMP, etc.

Nepal tea supply chain Export destination of top 5 companies?

Himal Tea

Himchuli Foods Packaging

Joubari Tea Estate

Everest Tea

Guarance Organic Tea

-

N/A

N/A

N/A

N/A

N/A

Y

Y

N/A

N/A

N/A

N/A

N/A

1.6

-

-

N/A

N/A

N/A

N/A

N/A

Netherlands

1.5

Y

Y

N/A

N/A

N/A

N/A

N/A

United States of America

1.1

Y

-

N/A

N/A

N/A

N/A

N/A

Japan

0.8

Y

-

N/A

N/A

N/A

N/A

N/A

France

0.5

Y

Y

N/A

N/A

N/A

N/A

N/A

Top Export Destinations

% of world

OECD?

EU?

India

5.4

-

Germany

2.4

Russian Federation

Chains Issues and Sustainability Policies in South And Southeast Asia 146 I Supply

Export destination of top 5 companies?

Himal Tea

Himchuli Foods Packaging

Joubari Tea Estate

Everest Tea

Guarance Organic Tea

-

N/A

N/A

N/A

N/A

N/A

-

-

N/A

N/A

N/A

N/A

N/A

Y

-

N/A

N/A

N/A

N/A

N/A

Top Export Destinations

% of world

OECD?

EU?

Canada

0.3

Y

China

0.2

Australia

0.2

Publicly disclosed policies?

Issue

Himchuli Foods Packaging

Himal Tea

Joubari Tea Estate

Guarance Organic Tea

Everest Tea

Human Rights Labor Rights Smallholders Suppliers

Bangladesh tea supply chain Export destination of top 5 companies?

Abul Khair

Halda Valley Food & Beverage

M.M. Ispahani

Meghna Tea Company

The Consolidated Tea & Lands

Top Export Destinations

% of world

OECD?

EU?

United States of America

54.2

Y

-

Pakistan

33.8

-

-

Italy

4.1

Y

Y

N/A

Canada

2.0

Y

-

N/A

Germany

1.3

Y

Y

N/A

Y Y

Y

N/A Y

Supply Chains Issues and Sustainability Policies in South And Southeast Asia

N/A

I 147

Export destination of top 5 companies?

Abul Khair

Halda Valley Food & Beverage

M.M. Ispahani

Meghna Tea Company

The Consolidated Tea & Lands

Y

N/A

Top Export Destinations

% of world

OECD?

EU?

Japan

1.0

Y

-

United Kingdom

0.7

Y

-

Y

China

0.7

-

-

Y

Malaysia

0.5

-

-

N/A

Cyprus

0.5

-

-

N/A

New Zealand

N/A

Y

-

Y

N/A N/A

Y Publicly disclosed policies?

Issue

Abul Khair

Halda Valley Food & Beverage

Human Rights Labor Rights Smallholders Suppliers

Chains Issues and Sustainability Policies in South And Southeast Asia 148 I Supply

M.M. Ispahani

Meghna Tea Company

The Consolidated Tea & Lands

Indonesia palm oil supply chain Export destination of top 5 companies?

Musim Mas

Golden PT AgriPertamina Resources

Royal Golden Eagle

Top Export Destinations

% of world

OECD?

EU?

Wilmar Int'l

China

16.4

-

-

Y

Y

Y

Y

Y

India

14.9

-

-

Y

Likely (global export reach)

Y

Likely (global export reach)

Likely (global export reach)

Pakistan

11.4

-

-

Y

Likely (global export reach)

Y

Likely (global export reach)

Likely (global export reach)

United States of America

5.5

Y

-

Y

Y

Y

Likely (global export reach)

Likely (global export reach)

Bangladesh

5.1

-

-

Y

Likely (global export reach)

Likely (global export reach)

Likely (global export reach)

Likely (global export reach)

Russian Federation

4.6

-

-

Y

Likely (global export reach)

Likely (global export reach)

Likely (global export reach)

Likely (global export reach)

Spain

4.1

Y

Y

Y

Likely (global export reach)

Likely (global export reach)

Likely (global export reach)

Likely (global export reach)

Malaysia

4.0

-

-

Y

Y

Likely (global export reach)

Likely (global export reach)

Likely (global export reach)

Supply Chains Issues and Sustainability Policies in South And Southeast Asia

I 149

Export destination of top 5 companies?

EU?

Wilmar Int'l

Musim Mas

Golden PT AgriResources Pertamina

Royal Golden Eagle

-

-

Y

Likely (global export reach)

Likely (global export reach)

Likely (global export reach)

Likely (global export reach)

-

-

Y

Likely (global export reach)

Likely (global export reach)

Likely (global export reach)

Likely (global export reach)

Top Export Destinations

% of world

OECD?

Myanmar

3.2

Egypt

2.8

Publicly disclosed policies?

Issue

Wilmar Int'l

Human Rights Cites UN

Universal Declaration of Human Rights, ILO Core Conventions.

Musim Mas

Golden Agri-Resources

PT Pertamina

Royal Golden Eagle

Respects, protects, and upholds the human rights, ILO, the UN Universal Declaration of Human Rights, and the Rights of Indigenous Peoples

Adopted several international standards such as the ILO convention, UN Global Compact Principle.

Upholds and promotes the UN Universal Declaration of Human Rights.

Respects the Universal Declaration of Human Rights, the tenure rights of indigenous peoples and rural communities, the ILO Declaration on Fundamental Principles and Rights at Work, and no tolerance for the use of violence.

Chains Issues and Sustainability Policies in South And Southeast Asia 150 I Supply

Publicly disclosed policies?

Issue

Wilmar Int'l

Musim Mas

Golden Agri-Resources

PT Pertamina

Royal Golden Eagle

Labor Rights

No forced labor, child protection, health & safety, equal opportunity.

No forced labor, child protection, health & safety, fair wages & benefits, equal opportunity, no sexual harassment.

Policies on several topics e.g., health and safety.

Supports FAO Voluntary Guidelines on the Responsible Governance.

Policies in several aspects such as diversity, safety and hygiene, no child labor, and no forced labor.

Smallholders

For scheme smallholders, support their financing for land preparation, materials, and technical knowledge; also help them achieve RSPO group certification.

Program for independent smallholders which aims to integrate them into the sustainable palm oil industry and work toward NDPE policy compliance and improving the livelihoods.

To support the livelihood and well-being of farmers and tribal wildcrafters.

Supports thousands of independent smallholders with technical knowledge sharing and financial assistance; also provides materials at price below market rate.

The policies depend on each company in the group, but all must adhere to Royal Golden Eagle's sustainability framework.

Suppliers

Has supplier reporting tool for their suppliers to report their compliance and risk-related issues, and site assessments.

Include several processes such as risk assessments, third-party site verification, self-assessment, training, monitoring, or grievance management which may be different depending on the level of supplier.

Includes requirements for its partner such as Health, Safety, Security and Environment (HSSE) which is dependent on the nature and risk of the supplier.

Require suppliers to comply with their policies such as human rights, NDPE, and traceability; assesses potential suppliers based on ESG criteria, systematic assessment of existing suppliers, monitoring, and communication with the stakeholders.

RGE will cease to do business with any company that is in serious violation of the company framework in sustainability and do not take any action to correct it.

This includes policies such as human rights, no deforestation, no new development on peatland, and legally harvested.

Supply Chains Issues and Sustainability Policies in South And Southeast Asia

I 151

Thailand palm oil supply chain Export destination of top 5 companies?

Top Export Destinations

% of world

OECD?

EU?

India

92.0

-

-

Kenya

4.8

-

Uganda

2.0

Myanmar

Univanich Lam Soon Palm Oil (Thailand)

PPP Green Complex

Chumpon Palm Oil Industry

United Palm Oil Industry

N/A

Not focused on exports

-

N/A

Not focused on exports

-

-

N/A

Not focused on exports

0.4

-

-

N/A

China

0.3

-

-

Ethiopia

0.1

-

Lao PDR

0.1

Djibouti

Y

Y

Y

Not focused on exports

N/A

Not focused on exports

-

N/A

Not focused on exports

-

-

N/A

Not focused on exports

0.1

-

-

N/A

Not focused on exports

Malaysia

0.1

-

-

Cambodia

0.1

-

-

Chains Issues and Sustainability Policies in South And Southeast Asia 152 I Supply

Y

Y

Y

N/A

Y

Not focused on exports

N/A

Y

Not focused on exports

Publicly disclosed policies?

Issue

Lam Soon (Thailand)

PPP Green Complex

Human Rights Using the guideline from RSPO Principles and Criteria, ILO core labor standards, and the National Labor Protection Act

Disclose the essence of the human right policy on website and scrutinize overall issues to ensure that they do not violate anyone in the supply chain.

Policies include human rights, equal opportunity, no discrimination, safe and healthy working condition, no child and forced labor, no harassment, free housing and utilities, and ensure that wages are above minimum wage.

Focus on complying with Thai labor standard requirements and related laws.

RSPO certified; has policies including fair wages and minimum holidays, equality and no discrimination, human rights support with complaint channel and handling protocol, no child, slavery, and forced labor, no harassment.

Labor Rights

Univanich Palm Oil

Chumpon Palm United Palm Oil Oil Industry Industry

Has policies on discrimination, equality, no child and forced labor, and no sexual harassment; has mechanisms for evaluation, monitoring, and remedy.

Focus on providing career development, fair wages, grievance channel, workplace safety, and work-life balance.

Focus on complying with Thai labor standard requirements and related laws.

Supply Chains Issues and Sustainability Policies in South And Southeast Asia

I 153

Publicly disclosed policies?

Issue

Univanich Palm Oil

Lam Soon (Thailand)

PPP Green Complex

Smallholders

Knowledge sharing and technical advice such as planting, upkeep practices, and budgeting; supplies more than 1.5 million seedlings annually to local farmers.

Create a community enterprise and helped facilitate them to get RSPO certification.

Suppliers

RSPO certification requires that the company ensure the basic rights for every stakeholder such as no deforestation for palm plantation, no illegal labor, providing a safe working environment, and fair compensation.

Requires their partners to be a standardized and environmentalfriendly vendor by having production standard.

RSPO certification requires that the company ensure the basic rights for every stakeholder such as no deforestation for palm plantation, no illegal labor, providing a safe working environment, and fair compensation.

Chains Issues and Sustainability Policies in South And Southeast Asia 154 I Supply

Chumpon Palm United Palm Oil Oil Industry Industry

Has some development program and its follow-up to increase smallholders’ knowledge on good planting practices.

Educate external growers on palm oil management to increase their profit and sustainable revenues.

No policy beyond stating that all suppliers must comply with all laws and regulations.

No policy beyond stating that all suppliers must comply with all laws and regulations.

The Philippines palm oil supply chain Export destination of top 5 companies?

A Brown Agumil Energy Caraga Oil Phiippines and Refining Resources

Kenram Univanich Industrial Carmen & Dev. Palm Oil

Top Export Destinations

% of world

OECD?

EU?

Malaysia

40.5

-

-

N/A

N/A

N/A

N/A

N/A

India

17.4

-

-

N/A

N/A

N/A

N/A

N/A

Sri Lanka

11.7

-

-

N/A

N/A

N/A

N/A

N/A

Singapore

9.6

-

-

N/A

N/A

N/A

N/A

N/A

Kenya

7.3

-

-

N/A

N/A

N/A

N/A

N/A

Uganda

4.2

-

-

N/A

N/A

N/A

N/A

N/A

Cameroon

3.7

-

-

N/A

N/A

N/A

N/A

N/A

China

2.4

-

-

N/A

N/A

N/A

N/A

N/A

Nepal

1.7

-

-

N/A

N/A

N/A

N/A

N/A

United States of America

0.7

Y

-

N/A

N/A

N/A

N/A

N/A

Supply Chains Issues and Sustainability Policies in South And Southeast Asia

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Publicly disclosed policies?

Issue

Agumil Phiippines

A Brown Energy and Resources

Human Rights Labor Rights

Health, safety, and welfare in the workplace such as no sexual harassment, performancebased bonus, training and development for employees, and ensuring safe working conditions, equipment, and work sites by continuing to identify and eliminating related risks through close collaboration with management and employees.

Smallholders

Has policies that are focused on plantation and mill employees by conducting training for them such as safety, wellness, pollution control, and waste management.

Chains Issues and Sustainability Policies in South And Southeast Asia 156 I Supply

Caraga Oil Refining

Kenram Industrial & Dev.

Univanich Carmen Palm Oil Their parent company (Univanich Palm Oil PCL) has policies such as human rights, equal opportunity, no discrimination, safe and healthy working condition, no child and forced labor, no harassment, free housing and utilities, and ensure that wages are above minimum wage by using the guideline from RSPO Principles and Criteria, and the ILO core labor standards.

RSPO certified (Parent company) (required them to ensure the basic rights for every stakeholder such as no rainforest cut down for palm plantation, no illegal labor, providing a safe working environment, fair compensation).

Publicly disclosed policies?

Issue

A Brown Energy and Resources

Agumil Phiippines

Caraga Oil Refining

Kenram Industrial & Dev.

Univanich Carmen Palm Oil

Ensure sustainability by acting with genuine concerns for all our stakeholders and the environment (no details).

Suppliers

RSPO certified (Parent company) (required them to ensure the basic rights for every stakeholder such as no rainforest cut down for palm plantation, no illegal labor, providing a safe working environment, fair compensation).

Vietnam palm oil supply chain Export destination of top 5 companies?

KIDO Group

Golden Tuong An Hope Nha Be

Top Export Destinations

% of world

OECD?

EU?

Cambodia

100.0

-

-

N/A

Japan

N/A

Y

-

N/A

Y

Y

Australia

N/A

Y

-

N/A

Y

Y

New Zealand

N/A

Y

-

N/A

Y

Y

Korea, Republic of

N/A

Y

-

N/A

Y

Singapore

N/A

-

-

N/A

Y

Y

Taiwan

N/A

-

-

N/A

Y

Y

United States

N/A

Y

-

N/A

Vocarimex

Calofic

Y Y Y

Y Supply Chains Issues and Sustainability Policies in South And Southeast Asia

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Export destination of top 5 companies?

KIDO Group

Top Export Destinations

% of world

OECD?

EU?

China

N/A

-

-

N/A

Middle East continent

N/A

-

-

N/A

Africa continent

N/A

-

-

N/A

Vocarimex

Calofic

Golden Tuong An Hope Nha Be

Y Y

Y Y

Publicly disclosed policies?

Issue

KIDO Group

Vocarimex

Calofic

Tuong An

Human Rights Labor Rights

Aligned with manufacturing standards such as Occupational Health and Safety Assessment Series (OHSAS); nurture and develop the capabilities or skills to meet the demand and personal needs.

Health care benefits and insurance, working time align with the local law, safety equipment, respected and equally without distinction, and clear policy of wages and bonuses.

Smallholders Suppliers

Company states that they want to create a sustainable supply chain for all partners (no details).

Chains Issues and Sustainability Policies in South And Southeast Asia 158 I Supply

Ensure the right infrastructure, equipment, tools, and skills are in place; company policies and code of ethics (no details).

Health care benefits, good working environment, equipment and protection for employees, compliance with Vietnam employment Act, no discrimination, and equal opportunity.

Golden Hope Nha Be

RSPO certified, which required them to ensure and verified by the third-party that the basic rights for every stakeholder along the supply chain (e.g., smallholders, landowners, workers, local communities) are fully respected and considered such as no rainforest cut down for palm plantation, no illegal labor, or ensure safe working environment.

Vietnam palm oil supply chain Export destination of top 5 companies?

Olam Vietnam

Top Export Destinations

% of world

OECD?

EU?

Germany

16.7

Y

Y

United States of America

12.2

Y

-

Italy

10.0

Y

Y

Japan

7.9

Y

-

Spain

7.7

Y

Y

Russian Federation

7.0

-

-

United Kingdom

4.1

Y

-

Belgium

3.8

Y

Y

Thailand

3.7

-

-

Y

Malaysia

3.5

-

-

Y

Y

Masan Consumer Corp.

Y

Y

Y

Y

Y

Simexco Daklak

DTK Intimex My Phuoc Corporation

Likely (global reach)

Likely (global reach)

Y

Y

Y

Y

Likely (global reach)

Likely (global reach)

Y

Likely (global reach)

Likely (global reach)

Likely (global reach)

Likely (global reach)

Likely (global reach)

Likely (global reach)

Likely (global reach)

Likely (global reach)

Likely (global reach)

Likely (global reach)

Likely (global reach)

Likely (global reach)

Likely (global reach)

Likely (global reach)

Supply Chains Issues and Sustainability Policies in South And Southeast Asia

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Export destination of top 5 companies?

Masan Consumer Corp.

Simexco Daklak

DTK Intimex Corporation My Phuoc

Y

Likely (global reach)

Likely (global reach)

Y

Y

Likely (global reach)

Likely (global reach)

Y

Y

Y

Likely (global reach)

Likely (global reach)

-

-

Top Export Destinations

% of world

OECD?

EU?

China

N/A

-

-

Netherlands

N/A

Y

France

N/A

Egypt

N/A

Olam Vietnam

Y

Publicly disclosed policies?

Issue

Human rights

Olam Vietnam

Masan Consumer Corp.

The company recognizes its role and responsibility in respecting human rights in its operations and in its global value chain.

Chains Issues and Sustainability Policies in South And Southeast Asia 160 I Supply

Simexco Daklak

Intimex My Phuoc Certified by Rainforest Alliance's 2021 Sustainable Agriculture Standard which means they value improving farmers and farm workers, their families, and local communities' livelihoods and fully respect human rights.

Company claims these standards are consistent with the UN Guiding Principles on Business and Human Rights.

DTK Corporation

Publicly disclosed policies?

Issue

Labor rights

Olam Vietnam Committed to Fair Employment Policy, sets commitment to ensure that all employees are treated with dignity and fairness, and to protecting the rights of staff in workplaces. It is aligned with the ethos of Growing Responsibly and is in full compliance with the conventions of the International Labor Organization (ILO) and United Nations Global Compact’s (UNGC) guiding principles on human rights and labor.

Masan Consumer Corp.

Commits to fair compensation and rewards for employee contributions, welfare, and provides training for employees.

Simexco Daklak

Intimex My Phuoc

On the website, the company publicly commits to supporting the well-being development of the community in which health care service for labor and labor safety has been improved continuously, e.g. equal treatment of women; in 2021, Simexco launched the program “Gender equality – empowering to female farmers on coffee farms” and training to improve household economic management capacity for women.

(Simexco Daklak, 2021) To motivation for female farmers to realize their roles in participating in sustainable farming on coffee farms.

Group members, workers, staff, and other stakeholders can safely report violence against human rights and grievances on any other issues. States that grievance mechanisms are accessible, in local languages, including for those who cannot read or do not have access to the Internet.

DTK Corporation

Supply Chains Issues and Sustainability Policies in South And Southeast Asia

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Publicly disclosed policies?

Issue

Smallholders

Olam Vietnam Has a policy to focus on networking and engaging with local smallholder farmers, as they are important production workers for the company; aims to tackle challenges and the key issues facing the coffee supply chain by 2025, enabled through structured collaboration with partner farmers.

Masan Consumer Corp.

Committed to enhancing community livelihoods and working with residents in each of the operational subsidiaries.

Chains Issues and Sustainability Policies in South And Southeast Asia 162 I Supply

Simexco Daklak

Intimex My Phuoc

DTK Corporation

Simexco has been building a purchasing network directly since the beginning, with the aim of “together with farmers to develop”, for creating value for community development of all stakeholders in the supply chain.

Prioritize cooperation with charitable organizations whose goal is to enhance the health and economic well-being of farmers and their families, with over 15,000 farmer households participating in the sustainable coffee program.

Awarded "Excellent enterprise for farmers" in 2015.

To recognize organizations that generate high-quality products, rural and agricultural development on innovative models, scientific research, and technology development initiatives.

Publicly disclosed policies?

Issue

Suppliers

Olam Vietnam The company is certified by many standards e.g., UTZ certified, a program and a label for sustainable farming; project "Atsource", the award-winning sustainability insights platform powered by Olam.

Packed with verified data, it connects them directly to the source of supply at each stage of the coffee’s journey, guaranteeing traceability; also includes third party risk assessments on relevant sustainability topics. For example, the UNICEF Rural Child Labor or WRI Aqueduct Country Ranking.

Masan Consumer Corp.

Simexco Daklak

Intimex My Phuoc

To establish Verified Sourcing Areas (VSAs) to ensure the supply of sustainable commodities at a competitive price and scale to improve agricultural sustainability.

Certified by Rainforest Alliance's 2021 Sustainable Agriculture Standard which includes supplier responsibility.

DTK Corporation

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The Philippines rice supply chain Export destination of top 5 companies?

Cagayan AgroIndustrial Pioneer

Meraput Philja Agricultural Arrastre Dev. Stevedoring

Don Bosco MultiPurpose Coop.

Top Export Destinations

% of world

OECD?

EU?

United Arab Emirates

25.6

-

-

N/A

N/A

N/A

N/A

Bangladesh

18.8

-

-

N/A

N/A

N/A

N/A

Qatar

16.1

-

-

N/A

N/A

N/A

N/A

Saudi Arabia

15.9

-

-

N/A

N/A

N/A

N/A

Kuwait

11.9

-

-

N/A

N/A

N/A

N/A

Bahrain

4.8

-

-

N/A

N/A

N/A

N/A

Canada

3.3

-

-

N/A

N/A

N/A

N/A

United States of America

1.6

Y

-

N/A

N/A

N/A

N/A

Netherlands

0.8

Y

Y

N/A

N/A

N/A

N/A

Israel

0.3

Y

-

N/A

N/A

N/A

N/A

Golden Hope Nha Be

Y

Publicly disclosed policies?

Issue

Cagayan Agro-Industrial Pioneer

Philja Arrastre Stevedoring

Human rights Labor rights Smallholders Suppliers

Chains Issues and Sustainability Policies in South And Southeast Asia 164 I Supply

Meraput Agricultural Dev.

Don Bosco Multi-Purpose Coop.

The Consolidated Tea & Lands

Thailand rice supply chain Export destination of top 5 companies?

EU?

Asia Golden Rice

Capital Rice

C.P. Intertrade

Golden Granary

Thai Hua (2511)

Y

-

N/A

N/A

Y

N/A

N/A

9.9

-

-

N/A

N/A

Likely (global reach)

N/A

N/A

China

9.4

-

-

N/A

N/A

Likely (global reach)

N/A

N/A

Niger

4.5

-

-

N/A

N/A

Likely (global reach)

N/A

N/A

Hong Kong

4.1

-

-

N/A

N/A

Y

N/A

N/A

Japan

4.1

Y

-

N/A

N/A

Likely (global reach)

N/A

N/A

Angola

3.3

-

-

N/A

N/A

Likely (global reach)

N/A

N/A

Cameroon

2.8

-

-

N/A

N/A

Likely (global reach)

N/A

N/A

Benin

2.7

-

-

N/A

N/A

Likely (global reach)

N/A

N/A

Singapore

2.6

-

-

N/A

N/A

Y

N/A

N/A

Top Export Destinations

% of world

OECD?

United States of America

16.7

South Africa

Supply Chains Issues and Sustainability Policies in South And Southeast Asia

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Publicly disclosed policies?

Issue

Asia Golden Rice

Capital Rice

Human Rights Labor Rights

C.P. Intertrade

The company publicly commits to respect for human rights across activities and business relationships.

That reflected adherence to UNDHR, UN Global Compact, UNGPs, ILO Declaration on the Principles and Fundamental Rights at Work, and local labor laws in each country where the company operates.

Smallholders Suppliers

Chains Issues and Sustainability Policies in South And Southeast Asia 166 I Supply

Code of Conduct for business partners stipulates that suppliers must comply with company policies.

Golden Granary Thai Hua (2511)

Vietnam rice supply chain Export destination of top 5 companies?

Intimex Group

Vietnam Northern Food Corp.

Thanh Tin Service and Trade

Orient Rice

Hiep Loi

Top Export Destinations

% of world

OECD?

EU?

Philippines

39.1

-

-

N/A

N/A

Y

Y

Y

China

21.9

-

-

N/A

N/A

Y

Y

Y

Malaysia

5.4

-

-

N/A

N/A

Y

Y

Y

Singapore

2.7

-

-

N/A

N/A

Hong Kong

2.0

-

-

N/A

N/A

Mozambique

1.6

-

-

N/A

N/A

Republic of Korea

1.4

Y

-

N/A

N/A

Indonesia

1.3

-

-

N/A

N/A

Australia

1.0

Y

-

N/A

N/A

Saudi Arabia

0.7

-

-

N/A

N/A

United States

N/A

Y

-

N/A

N/A

Y

Y

Y

Publicly disclosed policies?

Issue

Intimex Group

Vietnam Northern Food Corp.

Thanh Tin Service and Trade

Orient Rice

Hiep Loi

Human Rights Labor Rights Smallholders Suppliers

Supply Chains Issues and Sustainability Policies in South And Southeast Asia

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From the comparison of export data and company-level information, the research team observes that there seems to be some correlation between sustainability disclosures of the top 5 companies in each supply chain, and their major export destinations: companies that export to OECD and/or EU countries tend to disclose more sustainability policies relative to companies that do not export to those countries, although there are exceptions such as rice supply chain in Vietnam.

We can order the supply chains where top 5 companies disclose the most sustainability policies, in the order of most to least disclosures, as follows: Palm oil in Indonesia Palm oil in Thailand Palm oil in Vietnam Coffee in Vietnam Tea in India Tea in Sri Lanka Fisheries in Indonesia Palm oil in The Philippines Seafood in Sri Lanka Seafood in Bangladesh Rice in Thailand No disclosure: Seafood in Pakistan, Tea in Bangladesh, Tea in Nepal, Rice in Philippines, Rice in Vietnam Given the above information, the research team suggests that the research and advocacy of fairer practices in the food supply chain can be divided into 3 major categories, each requiring different focus and tactics as follows:

Global food supply chains where top companies announced policies.

For global food supply chains where top exporting companies already announced policies with regards to human rights and fair treatment of suppliers/smallholders in their supply chain, the emphasis for advocacy and research could be placed on the following issues: Chains Issues and Sustainability Policies in South And Southeast Asia 168 I Supply

Conducting “gap analysis” between the company’s disclosed policies and actual practices in the supply chain, such as human rights risk/impact assessments in accordance with United Nations Guiding Principles on Business and Human Rights.

Assisting companies in better enforcement and monitoring of their human rights and fair practice policies ‘down the supply chain,’ while providing incentives and capacity building for smallholders/small suppliers in the supply chain.

Encouraging industry-wide knowledge sharing and public recognition and dissemination of “industry best practices.”

Encouraging top buyers in the importing countries to pay more for products of companies with relatively strong records of human rights protection and fair compensation, in order to spur more ‘race to the top’ competition.

Encouraging companies to provide supplier credit with favorable terms to smallholders/small suppliers in their supply chain.

Global food supply chains where top companies have not announced policies.

For global food supply chains where top exporting companies have not announced public commitments to human rights and fair treatment of suppliers/smallholders, despite exporting to OECD and/or EU countries, the emphasis for advocacy and research could be placed on the following issues: Exploring and showing the estimates of higher risks, higher costs, and lower competitiveness, that could result after the passage of more stringent international human rights-related laws, such as the upcoming Corporate Sustainability Due Diligence law from the European Council. The research and advocacy on this issue could be addressed at governments, not only the relevant private sector.

Encouraging top buyers in the importing countries to pay more for products of companies with relatively strong records of human rights protection and fair compensation, in order to spur more ‘race to the top’ competition.

Supply Chains Issues and Sustainability Policies in South And Southeast Asia

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Conducting more research on the impact of climate change on vulnerable population in the food supply chains (e.g. artisanal fishermen).

Conducting research on how climate change mitigation and climate change adaptation strategies could be part of business strategies for companies.

Cross-cutting issues in food supply chains.

In addition to issues that are specific to different food supply chains, the research team identified several cross-cutting issues in the Prakarsa and SAAPE reports that seem to be prevalent in almost all food supply chains across different countries. These issues should be the focus of public policy advocacy in order to establish a level playing field across companies: Uneven legal protection, including access to social security and other state guaranteed welfare, for vulnerable groups including migrant laborers, day laborers, indigenous workers, and women workers.

Cultural norms that may impede equal employment, such as the fact that women are seen as ‘supplemental labor’ or ‘weak’ or ‘bad luck’ in some countries, thus relegating them to tasks that pay the least wages.

Legal impediments to human rights protection, such as the fact that women are not granted the legal right to own land in some countries, therefore they have very little bargaining power.

Chains Issues and Sustainability Policies in South And Southeast Asia 170 I Supply

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Kathmundu: SAAPE. Retrieved from https://saape.org/files/South%20Asia%20Tea%20Report_Plights%20of%20 Tea%20Plantation%20Workers%20&%20Smallholder%20Farmers%202022_2.pdf Seafood supply chain in Sri Lanka, Bangladesh, and Pakistan Alpex Marine. (2022). About us. Retrieved from http://www.alpexmarine.com/about-us/ Alpex Marine. (2022). CSR. Retrieved from http://www.alpexmarine.com/csr/ Alpex Marine. (2022). Quality Policy. Retrieved from http://www.alpexmarine.com/quality-policy/ Anraj Fish Products Industries. (2022). Company profile. Retrieved from https://www.anrajfish.com/company-profile/ B.K Trading Co. (2022). About us. Retrieved from http://bktradingco.com.pk/about-us/ B.K Trading Co. (2022). Quality. Retrieved from http://bktradingco.com.pk/quality/ BD Seafood. (2022). Retrieved from BD Seafood: http://bdseafood.com.bd/ bd.top10place.com. (2022). Retrieved from https://bd.top10place.com/seven-oceans-group-342649469.html Blue Line Ocean. (2022). About us. Retrieved from http://www.bluelineocean.lk/page/about-us Blue Line Ocean. (2022). Quality Control. Retrieved from http://www.bluelineocean.lk/page/quality-control EC21. (2022). Company Introduction. Retrieved from https://fatimaenterprise.en.ec21.com/company_info.html Export Development Board, Sri Lanka. (2022). Industry Capability Report: Sri Lankan Fisheries Sector. Retrieved from https://www.srilankabusiness.com/ebooks/industry-capability-report-fishery-products-industry-2021.pdf Friend of the Sea. (2022). Sustainable Fisheries and Fleets. Retrieved from https://friendofthesea.org/sustainable-standardsand-certifications/sustainable-fisheries-and-fleets/ International Trade Centre. (2022). Trade Statistics. Retrieved from https://intracen.org/resources/trade-statistics Jay Sea Foods Processing. (2022). Quality, Traceability and Sustainability. Retrieved from https://www.jayseafoods.com/ quality-traceability-sustainability/ Jay Sea Foods Processing. (2022). Who we are. Retrieved from https://www.jayseafoods.com/who-we-are/ John Sea Foods. (2022). Our Product. Retrieved from https://johnseafoods.lk/: https://johnseafoods.lk/ Larive International. (2021, April 12). Aquaculture sector study: Bangladesh. Retrieved from https://www.larive.com/ wp-content/uploads/2021/06/Aquaculture-Sector-Study-Bangladesh-Opportunities-in-the-aquaculture-sector-inBangladesh-RVO.nl-2021.pdf Lihini Seafoods. (2022). About Lihini Seafoods. Retrieved from https://www.lihiniseafood.com/about.html Lihini Seafoods. (2022). Sustainability. Retrieved from https://www.lihiniseafood.com/sustainability.html Maritime Fisheries. (2022). About us. Retrieved from https://maritimefisheries.com.pk/Welcome/AboutUs/ Mashud Group. (2022). Mashud Fish Processing & Ice Complex. Retrieved from http://mashudgroup.com/mashud-fishprocessing/ Mashud Group. (2022). Our mission. Retrieved from http://mashudgroup.com/mission-vision-policy/ Maxima International. (2022). Company. Retrieved from https://www.maximainternational.com.pk/page681a.html?id=1 Maxima International. (2022). Quality. Retrieved from https://www.maximainternational.com.pk/page5255.html?id=9 SAF Marine International. (2022). About us. Retrieved from https://seafoodpakistan.com.pk/about-us/

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Sedex. (2019, May). Sedex Members Ethical Trade Audit (SMETA) Measurement Criteria. Retrieved from https://www.sedex.com/wp-content/uploads/2019/05/SMETA-6.1-Measurement-Criteria.pdf Sedex. (2022). About us. Retrieved from https://www.sedex.com/about-us/ Virgo Fish & Agro Process. (2022). Retrieved from https://virgofish.com/ Fisheries supply chain in Indonesia C.V. SURYA MAS. (2022). About us. Retrieved from https://cvsuryamas.com/about-us/ Directorate General for Product Competitiveness, Ministry of Marine Affairs and Fisheries of The Republic of Indonesia. (2022).

Find Your Supplier. Retrieved from https://indonesiaseafood.id/supplier/hasil-melimpah-pt# International Trade Centre (ITC). (2022). Trade Map. List of Importing Markets for a Product Exported by Indonesia (Product: 0301 Live Fish). https://www.trademap.org/Country_SelProductCountry_TS.aspx?nvpm=1%7c360%7c%7c%7c%7c0301%7c% 7c%7c4%7c1%7c1%7c2%7c2%7c1%7c2%7c1%7c1%7c1 KELOLA Group. (2022). Sustainability. Retrieved from https://totalfisherychain.com/ KIRANA. (2022). Certification. Retrieved from https://www.kfifood.com/#!/certification NAILI OCEAN. (2022). ABOUT US. Retrieved from https://www.nailiocean.com/company NAILI OCEAN. (2022). HOME. Retrieved from https://www.nailiocean.com/ Perusahan Perdagangan Indonesia. (2022). About Us. Retrieved from https://www.ptppi.co.id/en/tentang-kami/ Perusahan Perdagangan Indonesia. (2022). Vision and Mission. Retrieved from https://www.ptppi.co.id/en/tentang-kami/ visi-misi/ Tea Supply Chain in India, Nepal, Sri Lanka, and Bangladesh Abul Khair Consumer Goods Division. (2022). tea. Retrieved from abulkhaircgd: https://www.abulkhaircgd.com/tea/ Akbar Premium Quality Tea. (2022). about us. Retrieved from akbar: https://www.akbar.com/about/ Anverally Tea. (2022). about us. Retrieved from anverally: https://www.anverally.com/about-us/ Dilmah Tea. (2021). Annual Report 2020/2021. Sri Lanka: Dilmah Tea. Dilmah Tea. (2022). Retrieved from Dilmah Tea: https://www.dilmahtea.com/ Dilmah Tea. (2022). DILMAH HUMAN RIGHTS POLICY. Retrieved from dilmahtea: https://www.dilmahtea.com/privacyand-terms/dilmah-human-rights-policy Empire Teas. (2022). CSR. Retrieved from Empire Teas website: https://www.empireteas.com/about/csr/ Everest Tea Estate. (2022). everestteaestate. Retrieved from our story: https://everestteaestate.com/ Guarance Organic Tea. (2022). our story. Retrieved from gurancetea: https://www.guransetea.com.np/index.php? route=information/information&information_id=4 Halda Valley. (2022). our story. Retrieved from haldavalley: https://haldavalley.com/our-story/ Heritage Group. (2022). about us. Retrieved from heritagegroup: https://heritagegroup.lk/about-us/ Heritage Group. (2022). csr initiative. Retrieved from Heritagegroup: https://heritagegroup.lk/media/#csr-initiative Himalayan Tea. (2022). about rakura. Retrieved from himalayantea: https://himalayantea.dk/products/ Himchuli Mart. (2022). Retrieved from himchulimart: https://www.himchulimart.com/ HUL . (2022). Raise living standards. Retrieved from HUL : https://www.hul.co.in/planet-and-society/raise-living-standards/ HUL. (2017). Unilever Responsible Sourcing Policy. Retrieved from unilever: https://assets.unilever.com/files/92ui5egz/ production/6fd19e491d1b12a1cf6d0e26b79703f31093ed6f.pdf/responsible-sourcing-policy-interactive-final.pdf HUL. (2022). Employee health & wellbeing. Retrieved from HUL: https://www.hul.co.in/planet-and-society/employeehealth-wellbeing/ HUL. (2022). Equity, diversity and inclusion. Retrieved from HUL: https://www.hul.co.in/planet-and-society/equity-diversityand-inclusion/ HUL. (2022). Introduction to HUL. Retrieved from HUL: https://www.hul.co.in/our-company/introduction-to-hul/ Chains Issues and Sustainability Policies in South And Southeast Asia 172 I Supply

HUL. (n.d.). Respect human rights. Retrieved from HUL: https://www.hul.co.in/planet-and-society/respect-humanrights/#uco-header-menu-1-2 IMARC. (2021). Blog. Retrieved from imarcgroup: https://www.imarcgroup.com/indian-tea-manufacturing-companies International Trade Centre. (2022). Compare Markets For product 1006 – Rice Exported from Philippines. Market Access Map. https://www.macmap.org/en/query/compare-market?reporter=All&partner=608&product=1006 International Trade Centre. (2022). Compare Markets For product 0902 – Tea, whether or not flavoured Exported from India.

Market Access Map. https://www.macmap.org/en/query/compare-market?reporter=All&partner=699&product=0902 International Trade Centre. (2022). Compare Markets For product 0902 – Tea, whether or not flavoured Exported from Nepal.

Market Access Map. https://www.macmap.org/en/query/compare-market?reporter=All&partner=524&product=0902 International Trade Centre. (2022). Compare Markets For product 0902 – Tea, whether or not flavoured Exported from Sri Lanka. Market Access Map. https://www.macmap.org/en/query/compare-market?reporter=All&partner=144& product=0902 Ispahani. (2022). about us. Retrieved from ispahanibd: https://www.ispahanibd.com/tea-company-in-bangladesh/ Jaubari Tea. (2022). our story. Retrieved from Jaubaritea: https://www.jaubaritea.com/our-story/ Larive International. (2021, April 12). Aquaculture sector study: Bangladesh. Retrieved from https://www.larive.com/ wp-content/uploads/2021/06/Aquaculture-Sector-Study-Bangladesh-Opportunities-in-the-aquaculture-sector-inBangladesh-RVO.nl-2021.pdf Meghma Group of Industries. (2022). about mgi. Retrieved from mgi: https://www.mgi.org/about Meghna Group of Industries. (2022). giving back. Retrieved from mgi: https://www.mgi.org/giving-back Murari Prasad Gautam Upadhyay. (2018). Tea Production and Export Development in Nepal. Bangkok: Asia-Pacific Association of Agricultural Research Institutions. Retrieved from http://www.apaari.org/web/wp-content/uploads/ downloads/2019/Linking%20Farmer%20-Success%20Story_29-1-2019.pdf National Tea and Coffee Development Board. (2022). Producer list. Retrieved from teacoffee: https://www.teacoffee.gov.np/ teaproducer Organic India. (2022). about us. Retrieved from organicindia: https://organicindia.com/pages/about Organic India. (2022). Vision&mission. Retrieved from Organicindia: https://organicindia.com/pages/vision-mission Society Tea. (2022). about us. Retrieved from Societytea: https://societytea.com/pages/about-us Specialty Food Association. (2022). member directory. Retrieved from specialtyfood: https://www.specialtyfood.com/ organization/131260/anverally-sons-pvt-ltd/ Sri Lanka Export Development Board. (2022). PURE CEYLON TEA. Retrieved from srilankabusiness: https://www.srilankabusiness.com/tea/ Tata Consumer Product. (2018, October 17). Retrieved from Tataconsumer: https://www.tataconsumer.com/sites/g/files/ gfwrlq316/files/2021-05/supplier-code-of-conduct_oct-2018112ebc881a2368caa65dff02001c5be1.pdf TaTa Consumer Product. (2022). ESG Report for Better Living. India: TaTa Consumer Product.

Tata Consumer Product. (2022). People Philosophy. Retrieved from tataconsumer: https://www.tataconsumer.com/ people/people-philosophy Tata Consumer Products. (2022). about. Retrieved from tataconsumer: https://www.tataconsumer.com/about Tata Consumer Products. (2022). Gender pay gap report. Retrieved from tataconsumer: https://www.tataconsumer.com/ gender-pay-gap-report The Consolidated Tea & Lands Co. (2022). home. Retrieved from finlaysbd: http://www.finlaysbd.com/contact.html Wagh Bakri Tea Group. (2022). about us. Retrieved from waghbakritea: https://www.waghbakritea.com/about-us.php Wagh Bakri Tea Group. (2022). CSR policy. Retrieved from Wagh Bakri: https://www.waghbakritea.com/pdf/CSRPolicy-2022.pdf

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Palm oil supply chain in Indonesia, Thailand, Philippines, and Vietnam A Brown Company. (2022). Retrieved from Agribusiness: https://abrown.ph/our-business/agribusiness/ A Brown Company. (2022). Retrieved from Policy on Health Safety and Welfare of Employees: https://abrown.ph/ kooroast/2021/07/Policy-on-Health-Safety-and-Welfare-of-Employees.pdf A Brown Company. (2022). Retrieved from Code of Conduct: https://abrown.ph/kooroast/2021/06/Code-Of-Conduct.pdf Calofic. (2022). Retrieved from About Calofic: https://www.calofic.com.vn/ve-calofic/?lang=en Calofic. (2022). Retrieved from Mission & core values: https://www.calofic.com.vn/su-menh/?lang=en Caraga Oil Refining. (2022). Retrieved from Who We Are: https://www.caragaoilrefining.com/ Chain Reaction Research. (2022). Retrieved from NDPE Policies Cover 83% of Palm Oil Refineries: https://chainreactionresearch.com/ wp-content/uploads/2020/04/NDPE-Policies-Cover-83-of-Palm-Oil-Refining-Market.pdf Chumporn Palm Oil. (2022). Retrieved from About us: https://www.cpi-th.com/en/about Chumporn Palm Oil. (2022). Retrieved from Sustainability management in the social dimension: https://www.cpi-th.com/th/ corporate-governance/4 Chumporn Palm Oil. (2022). Retrieved from RSPO: https://www.cpi-th.com/th/rspo Chumporn Palm Oil. (2022). Retrieved from Sustainable development report: https://www.cpi-th.com/th/report Forum for Sustainable Palm Oil. (2022). Retrieved from Certification standards: https://www.forumpalmoel.org/certification/ certification-standards Golden Agri-Resources. (2022). Retrieved from Who we are: https://www.goldenagri.com.sg/about-us/ Golden Agri-Resources. (2022). Retrieved from Championing human and labor rights: https://www.goldenagri.com.sg/ sustainability/human-rights-and-labor/ Golden Agri-Resources. (2022). Retrieved from Responsible Sourcing: https://www.goldenagri.com.sg/sustainability/ responsible-sourcing/ Golden Agri-Resources. (2022). Retrieved from Supplier Assessment: https://www.goldenagri.com.sg/sustainability/ responsible-sourcing/supplier-assessment/ Golden Hope Nha Be. (2022). Retrieved from Company Information: https://goldenhope-edibleoil.en.ec21.com/company_info.html International Trade Centre. (2022). Compare MarketsFor product 1511 – Palm oil and its fractions, whether or not refined, but not chemically modified Exported from Indonesia. Market Access Map. https://www.macmap.org/en/query/ compare-market?reporter=All&partner=360&product=1511 International Trade Centre. (2022). Compare Markets For product 1511 – Palm oil and its fractions, whether or not refined, but not chemically modified Exported from Thailand. Market Access Map. https://www.macmap.org/en/query/ compare-market?reporter=All&partner=764&product=1511 International Trade Centre. (2022). Compare Markets For product 1511 – Palm oil and its fractions, whether or not refined, but not chemically modified Exported from Philippines. Market Access Map. https://www.macmap.org/en/query/ compare-market?reporter=All&partner=608&product=1511 International Trade Centre. (2022). Compare Markets For product 1511 – Palm oil and its fractions, whether or not refined, but not chemically modified Exported from Viet Nam. Market Access Map. https://www.macmap.org/en/query/ compare-market?reporter=All&partner=704&product=1511 Kido Group. (2022). Retrieved from Our story: https://www.kdc.vn/en/gioi-thieu/cau-chuyen-kido Kido Group. (2022). Retrieved from Sustainability: https://www.kdc.vn/en/gioi-thieu/cam-ket-cua-kido Krungsri Research. (2022). Retrieved from Industry Outlook 2022-2024 : Palm Oil Industry: https://www.krungsri.com/ en/research/industry/industry-outlook/agriculture/palm-oil/IO/Oil-palm-industry-2022-2024 Lam soon. (2022). Retrieved from Company History: http://www.lamsoon.co.th/companyhistory.php?lang=en Lam Soon. (2022). Retrieved from Labor and Social Responsibility policy: http://www.lamsoon.co.th/upload/files/ governance/314/labor_and_social_responsibility_policy2022_en.pdf

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Lam Soon. (2022). Retrieved from Sustainability Policy: http://www.lamsoon.co.th/upload/files/governance/318/ sustainability_policy2022_en.pdf Lam Soon. (2022). Retrieved from Annual Registration Statement 2021: http://www.lamsoon.co.th/assets/pdf/ AR-OneReport/lst_ar-56-1_2021.pdf Musim Mas. (2022). Retrieved from About Musim Mas: https://www.musimmas.com/about-us/ Musim Mas. (2022). Retrieved from Labor and Human Rights: https://www.musimmas.com/sustainability/labor-human-rights/ Musim Mas. (2022). Retrieved from Smallholders: https://www.musimmas.com/smallholders/ Musim Mas. (2022). Retrieved from Third-party suppliers: https://www.musimmas.com/sustainability/third-party-suppliers/ Pertamina. (2022). Retrieved from Company Overview: https://www.pertamina.com/en/company-overview Pertamina. (2022). Retrieved from Sustainability Report: https://pertamina.com/Media/File/Pertamina_Sustainability_ Report_2021.pdf Philippine Coconut Authority Regional Officess. (2022). Retrieved from 2017 Summary of Oil Palm Supplier: https://pca.gov.ph/ pdf/tradeDirectory/2017/OilPalmTD.pdf PPP Green Complex. (2022). Retrieved from About PPP: https://www.pppgc.co.th/en/about-us/ PPP Green Complex. (2022). Retrieved from Code of Conduct: https://www.pppgc.co.th/wp-content/uploads/2022/04/ หลั​ักการและจรรยาบรรณในการดำำ�เนิ​ินธุ​ุรกิ​ิจ.pdf Royal Golden Eagle. (2022). Retrieved from Our Company: https://www.rgei.com/about/our-company Royal Golden Eagle. (2022). Retrieved from Forestry, Fibre, Pulp & Paper Sustainability Framework: https://www.rgei.com/ sustainability/sustainability-framework Stockholm Environment Institute. (2022). Retrieved from Indonesia makes progress towards zero palm oil deforestation: https://www.sei.org/featured/zero-palm-oil-deforestation/ The Philippine Coconut Authority-Palm Oil Development. (2022). Retrieved from The Philippine Palm Oil Industry Roadmap 2014-2023: https://pca.gov.ph/images/brochure/oilPalms.pdf Tuong An. (2022). Retrieved from Tuong An: https://www.tuongan.com.vn/en Tuong An. (2022). Annual Report 2021. Retrieved from https://www.tuongan.com.vn/public/uploads/CBTT/2022/ TAC_BCTN_2021.pdf United Palm Oil Industry. (2022). Retrieved from Company History: http://www.upoic.co.th/companyhistory.php?lang=en United Palm Oil Industry. (2022). Retrieved from Annual Registration Statement: http://www.upoic.co.th/assets/pdf/AROneReport/upoic-form56-1_OneReport-2021-eng.pdf Univanich. (2022). Retrieved from Timeline of Development: https://univanich.com/timeline-of-development/ Univanich. (2022). Retrieved from Sustainability Report 2021: https://univanich.com/wp-content/uploads/2022/06/ sustainability_report_2021-compressed.pdf Univanich. (2022). Retrieved from Social Responsibility: https://univanich.com/project/social-sustainability/ USDA. (2022). Retrieved from Philippines Palm Oil Area, Yield and Production: https://ipad.fas.usda.gov/countrysummary/ Default.aspx?id=RP&crop=Palm%20Oil VietnamCredit. (2022). Retrieved from Top largest cooking oil companies in Vietnam: https://vietnamcredit.com.vn/news/ top-largest-cooking-oil-companies-in-vietnam_14576 VNDirect. (2022). Retrieved from Agribusiness: https://www.vndirect.com.vn/cmsupload/beta/MarketStrategy_ Foodprice_20210423.pdf Vocarimex. (2022). Retrieved from General Introduction: https://vocarimex.com.vn/en/about-us.html Vocarimex. (2022). Retrieved from Sustainable development: https://vocarimex.com.vn/en/sustainable-development.html Wilmar. (2022). Retrieved from Corporate Profile: https://www.wilmar-international.com/about-us/corporate-profile Wilmar. (2022). Retrieved from Human Right Policy: https://www.wilmar-international.com/docs/default-source/ default-document-library/sustainability/policies/human-rights-policyed16f04afc7043738e7579b103a3a15e.pdf? sfvrsn=9378b7f5_2 Supply Chains Issues and Sustainability Policies in South And Southeast Asia

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Wilmar. (2022). Retrieved from Smallholder Programmes: https://www.wilmar-international.com/sustainability/smallholderprogrammes Wilmar. (2022). Retrieved from Scheme Smallholder Programme: https://www.wilmar-international.com/sustainability/ smallholder-programmes/plasma-programme Wilmar. (2022). Retrieved from Supply Chain Transformation: https://www.wilmar-international.com/sustainability/supplychain-transformation World Integrated Trade Solution. (2022). Retrieved from Vietnam imports of Vegetable oils: https://wits.worldbank.org/ trade/comtrade/en/country/VNM/year/2019/tradeflow/Imports/partner/ALL/product/151190 Coffee supply chain in Vietnam Business Media International. (2022, February 10). Olam vietnam limited. HR Asia Best Companies To Work For In Asia.

Retrieved from https://hr.asia/awards/2021-event/vietnam2021/olam-vietnam-ltd-vn-2021/ DTK Corporation. (2016, August 8). DTK Corporation first won the title “Excellent Enterprise for Farmers.” . Retrieved from http://www.dtk.com.vn/en/dtk-news/dtk-corporation-first-won-the-title-excellent-enterprise-for-farmers.html DTK Corporation. (n.d.). History. Retrieved from http://www.dtk.com.vn/en///dtk.com.vn/introduction/history.html DTK Corporation. (n.d.). Import, Export Agriculture. Retrieved from http://www.dtk.com.vn/en/import-export-agriculture/ DTK Corporation. (n.d.). Vision and Mission. Retrieved from http://www.dtk.com.vn/en///dtk.com.vn/introduction/missionand-vission.html Export Development Board, Sri Lanka. (2022). Industry Capability Report: Sri Lankan Fisheries Sector. Retrieved from https://www.srilankabusiness.com/ebooks/industry-capability-report-fishery-products-industry-2021.pdf International Trade Centre. (2022). Trade Statistics. Retrieved from https://intracen.org/resources/trade-statistics International Trade Centre. (2022). Compare Markets For product 0901 – Coffee, whether or not roasted or decaffeinated; coffee husks and skins; coffee substitutes containing coffee in any proportion Exported from Viet Nam. Market Access Map. https://www.macmap.org/en/query/compare-market?reporter=All&partner=704&product=0901 Intimex group. (2021, August 9). Sustainability. Retrieved from https://www.intimexcoffee.com.vn/sustainability/ Intimex My Phuoc. (2022). Subtainability. Retrieved from INTIMEX MY PHUOC: http://intimexmp.com/phat-trien-ben-vung Masan Group. (2020). Environmental sustainability. Retrieved from https://www.masangroup.com/sustainability/ environment.html Masan Group. (2020). Sustainability. Retrieved from https://www.masangroup.com/sustainability/talent.html Olam Group. (2022). About Us. Retrieved from https://www.olamgroup.com/about-olam.html Olam Group. (n.d.). Position on Human and Labor Rights. Olam Group. Retrieved from https://www.olamgroup.com/ content/dam/olamgroup/about-olam/ethics-and-compliance/ethics-and-compliance-pdfs/position-on-humanand-labor-rights-march.pdf Panjiva. (2022). Supply Chain Intelligence about: Dtk Corporation. Retrieved from Panjiva - Global Trade Insights: https://panjiva.com/Dtk-Corporation/28360106 Simexco Daklak. (2020). About Us. Retrieved from https://simexcodl.com.vn/en/about-us/ Simexco Daklak. (2021). Gender Equality- Cooperation Program Simexco & Strauss. Retrieved from https://simexcodl.com.vn/ en/gender-equalit-cooperation-program-simexco-strauss/ Simexco Daklak. . (2020). Sustainability. Retrieved from https://simexcodl.com.vn/en/sustainability/ Tessler, C. (2022, January 23). ofi supports breastfeeding workplaces throughout Vietnam. Retrieved from Olam International Limited: https://www.ofi.com/news-and-events/blog/ofi-supports-breastfeeding-workplaces-Vietnam.html Vietnamnews. (2021). Masan wins Asia Corporate Excellence and Sustainability Award. Retrieved from https://vietnamnews.vn/ economy/1084607/masan-wins-asia-corporate-excellence-and-sustainability-award.html World Agroforestry Centre. (2017, September 26). Olam Vietnam Limited: An Introduction. Retrieved from SlideShare: https://www.slideshare.net/agroforestry/olam-vietnam-limited-an-introduction-80157282 Chains Issues and Sustainability Policies in South And Southeast Asia 176 I Supply

Rice supply chain in The Philippines, Thailand, and Vietnam Asia Gold Rice Co.,Ltd. (2021, March 30). THAILAND TOP 5 RICE EXPORTER. Retrieved from https://www.asiagoldenrice.com/ Thailand-Top-5-Rice-Exporters.php Asia Gold Rice Co.,Ltd. (n.d.). Retrieved from History of Asia Gold Rice Co.,Ltd.: https://www.asiagoldenrice.com/ company_profile.php C.P. Group. (2020). Human right report. Retrieved from https://www.cpgroupglobal.com/storage/document/additionaltopic-specific-reports/2021/human-rights-report-2020-en.pdf C.P. Group. (n.d.). Human Rights and Labor Practices Policy and Guidelines Charoen Pokphand Group. Retrieved from https://www.cpgroupglobal.com/en/sustainability/heart-living-right/human-rights-and-labor-practices C.P.Intertrade Co., Ltd. (n.d.). Retrieved from C.P.Intertrade Co., Ltd. and C.P. Thai Rice Co., Ltd.: https://www.cpthairice.com/about-us/ Capital Rice. (n.d.). company profile. Retrieved from http://www.capitalrice.com/ Golden Granary Co., Ltd. (n.d.). Retrieved from GOLDEN GRANARY: https://www.goldengranary.com/ Hiep Loi Joint-Stock Co., . (n.d.). Retrieved from HIEP LOI JOINT STOCK COMPANY: http://www.hieploifood.com.vn/ International Trade Centre. (2022). Compare Markets For product 1006 – Rice Exported from Philippines. Market Access Map. https://www.macmap.org/en/query/compare-market?reporter=All&partner=608&product=1006 International Trade Centre. (2022). Compare Markets For product 1006 – Rice Exported from Thailand. Market Access Map. https://www.macmap.org/en/query/compare-market?reporter=All&partner=764&product=1006 International Trade Centre. (2022). Compare Markets For product 1006 – Rice Exported from Viet Nam. Market Access Map. https://www.macmap.org/en/query/compare-market?reporter=All&partner=704&product=1006 Intimex Group. (n.d.). Retrieved from About Intermex Group: https://www.intimexcoffee.com.vn/ Orico. (2018). Retrieved from About us: http://www.orico.vn/ Othman, Z. (2012). Information and communication technology innovation as a tool for promoting. Faculty of Science University of Malaya: Kuala Lumpur.

Thai Hua (2511) Co., Ltd. (n.d.). Retrieved from THAI HUA: Thailand’s leading rice exporter: https://www.thaihua.co.th/ Thanh Tin Service and Trade Co., Ltd. (n.d.). Retrieved from THANH TIN TRADING AND SERVICE COMPANY LIMITED: http://www.thanhtinfood.com/en/main.html USDA. (2021). Rice: World Markets and Trade. Retrieved from Office of Global Analysis, Foreign Agricultural Service, : http://apps.fas.usda.gov/psdonline/circulars/grain-rice.pdf Vietnamcredit. (2022, March 23). VIETNAM’S TOP 10 RICE EXPORTERS (JANUARY 2022). Retrieved from https://vietnamcredit.com.vn/news/vietnams-top-10-rice-exporters-january-2022_14667 Vinafood1. (n.d.). FORMATION PROCESS. Retrieved from http://vinafood1.com.vn/news/tID9546_Qua-trinh-hinh-thanhva-phat-trien.html

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