Are US buyers boycotting Thailand shrimp?

U.S. retail and foodservice buyers , along with suppliers, are taking different approaches to handling the aftermath of the Associated Press report on human rights violations at shrimp processing houses in Thailand.

Immediately following the report, major restaurant chains and retailers such as Red Lobster and Whole Foods Market denied that they received shrimp from Thai Union Group that was contracted to third party processors that were linked to forced labor.

Thai Union also reacted quickly, promising to bring all seafood processing in-house.

But that is not enough for some buyers, who don’t want to be connected with the slave labor allegations. At least one large U.S. supermarket chain has temporarily halted buying shrimp from Thailand.

“AP painted a very bad picture. Obviously, it is something we don’t want to be associated with. We temporarily stopped purchasing shrimp from Thailand, until they get a handle on what is going on,” a buyer for the large supermarket chain told SeafoodSource. “I think most retailers will stop carrying shrimp from Thailand.”

At the same time, the retailer acknowledged that only two customers asked about the Thai slavery allegations. “I’m a firm believer that the customers believe you are doing the right thing,” the buyer said.

However, the National Fisheries Institute and some retailers have said it better to be involved in changing practices in Thailand, instead of choosing not to source from the country.

“It’s important to recognize calls for things like a boycott of Thailand would not help the situation there,” said Gavin Gibbons, director of media relations for NFI. “If you’re a company that wants to see change and you buy from Thailand, you have a foot in the door and can help effect change. If you walk away, you lose that leverage. Additionally, restaurants and retailers who understand that dynamic will remain focused on change, rather than knee jerk reactions.”

After the AP report, Whole Foods Market investigated its supply chain, “going beyond our existing third-party audits of processing facilities by conducting our own on-site inspections of Thai Union facilities,” according to a statement from the company. The company found that it did not receive shrimp from the third-party processing houses in question.

While Walmart did not deny that it received shrimp from the factories in question, executives are “horrified” by the reported abusive practices. “The ethical recruitment and treatment of workers in the industry as a whole is extremely important to us, which is why we are working hard to form coalitions and partnerships that will help lead to sustainable improvements in the industry,” Marilee McInnis with international corporate affairs and global communication for Walmart, said in a statement emailed to SeafoodSource.

Meanwhile, companies that are shifting shrimp processing in-house are utilizing an effective way to “gain tighter control of the value chain”, Gibbons said. “Vertically integrating the process allows companies more oversight and sees companies shouldering more of the responsibility. Far from a boycott, this is a step that further integrates companies into the accountability work.”

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