A BBC investigation into child labor and worker exploitation in Turkey–on the hazelnut plantations that supply Ferrero–has ‘curiously’ escaped the attention of the national press.
The true costs of Nutella
Nutella is the world’s best-selling spreadable cream. Annual production is estimated at 365 thousand tons, equal to the weight of the Empire State Building. The empire founded in Alba-with a holding company in Luxembourg and subsidiaries on 5 continents (1)-bases its fortunes on affordable prices, on the surface. And resounding commercial policies, which have brought its brands (Nutella, Kinder Rocher, Tic-Tac, Esta-Thé) to the most celebrated global recognition.
The true costs of these ultra-processed foods are high. But they do not affect the industrial behemoth, which in fact maintains extraordinary profitability and has been snapping up various other groups in Europe and the U.S. for a number of years. Instead, these are outsourced costs:
– upstream, on workers, local communities and ecosystems where agricultural production of raw materials(palm oil first and foremost) takes place,
– downstream, on consumers and public health in the countries of destination of the goods. Roughly in every corner of the planet, with varying intensity.
Turkish hazelnuts and food safety
Turkey currently produces about 75 percent of the planet’s hazelnuts. Thanks also to Ferrero, which has invested enormous resources in the development of this supply chain. Until acquiring, in 2014, the world’s leading hazelnut supplier, Trebizond-based Holtan Group (with 5 plants in Turkey).
Why to favor Turkish hazelnut is simple. Between 2012 and 2014, its price was stable at €92/quintal, compared to €670 for the Italian one. Since 2015, increased supply and the devaluation of the Turkish lira (which has come to triple the exchange rate) have lowered the prices of Piedmontese trilobata-which have halved in a few years, to 330 €/sq m in 2018-and improved yields in Byzantium (200 €/sq m).
The food safety of Turkish hazelnuts has always been problematic, due to high levels of aflatoxins. The most dangerous mycotoxins, as they are genotoxic, hepatocarcinogenic and toxic to the immune system.
The European Commission, however, increased the thresholds for aflatoxin contamination by 150 percent in 2010. (3) ‘Combination,’ right on the nuts (!). Although the danger remains unchanged and indeed is still underestimated exposure of children 3 years and older (since toxicological thresholds are set on adults, whose weight is several times that of toddlers).
Turkish hazelnuts and worker exploitation
TheBBC investigation aims to understand the cost differential between Turkish and European hazelnuts. Journalist Tim Wheeler visited the crops, witnessed the harvest and interviewed several operators. He documented the grueling work of the gatherers. 10 hours a day, manually collecting and transporting bags that weigh an average of 35Kg.
Much of the work is done by seasonal workers, mainly Kurds, who come from the country’s poorest regions. The official daily wage set by local authorities at €15. Processed on an hourly basis, it is less than the minimum monthly wage expected for a 40-45 hour work week (€318). But it tends to be cut in half, after paying a 10 percent commission to the labor contractor, plus travel and overnight costs on site.
Nutella and child labor
BBC reporter wonders if there is child labor behind the harvesting of hazelnuts destined for Nutella. He photographed and interviewed two children aged 10 and 12, well below the minimum age to work in Turkey, engaged in harvesting. These children receive an average of €10 for each day of backbreaking work, from which 10% employer fees, as well as travel and accommodation costs, are deducted.
The supply chain is described to the English journalist by some manvas, the local traders who participate in it, in the following terms:
– the state should control (and prevent) child labor, but in fact
– 400,000 micro farms outsource work to an uncontrolled flow of laborers and child laborers,
– manvas receive the fruits from the myriad micro-farms and resell them to traders, who in turn supply Ferrero and other industries.
Traceability is a mirage, and it is currently impossible to verify which of the thousands of tons of goods are derived from companies that exploit child labor. Ferrero itself buys about one-third of total Turkish production and says it can now ‘track’ 39 percent of supplies. With what detail, it is not known.
Big Food and child exploitation
The UN Convention on the Rights of the Child was unanimously adopted by the UN General Assembly on Nov. 20, 89. And it is supplemented by the ILO(International Labor Organization) Convention 17.6.99 no. 182, ‘concerning the prohibition of the worst forms of child labor‘.
‘The States Parties recognize the right of the child to be protected against economic exploitation and not to be compelled to any work that com- poses risks or is likely to endanger his or her education or harm his or her health or physical, mental, spiritual, moral or social development‘ (UN Convention on the Rights of the Child, Article 32.1)
Big Food
– 100 years after the founding of the ILO and 30 since the U.N. Convention on the Rights of the Child-continues to exploit disenfranchised workers and child labor in Low-Middle Income Countries (LMICs). Under the guise of on-site middlemen who certainly do not exempt the recipients of the goods from co-responsibility in illicit and criminal activities.
Everyone’s responsibilities
Child exploitation is amply demonstrated and proven in the palm oil, cocoa and now hazelnut supply chains. The industrial giants responsible for these and other international crimes against humanity and the environment-such as land robbery and deforestation, the focus of our Buycott campaign! – moreover, boast of being ‘sustainable’. With munificent greenwashing operations to which no one, or hardly anyone, reacts.
However, politics remains subservient to the demands of the finance-industry giants, who in fact employ powerful lobbies at all levels. For example, to prevent the adoption of public health measures aimed at preventing obesity, overweight and related diseases ( NCDs, Non-Conmunicable Diseases). While the press is kept on a leash, with the carrot of generous publicity and the stick of lawsuits.
Ethical consumer choices
We are all ultimately responsible. We have to decide every day whether:
– contribute to the lucrative businesses of supply chains that rely on the inhumane exploitation of children. For the laziness of throwing the most well-known brands into the cart and the ‘smartness’ of giving in to promotions, or
– Forcing a breakthrough. Just choose fair trade products, all the better if they are organic.
In the case of confectionery, the starting point is to always exclude those with palm oil and favor choosing hazelnuts produced in Italy.
#Égalité, #IoVotocolPortfolio.
Dario Dongo and Guido Cortese
Notes
(1) Since 1956, when the first large plant opened in Germany, Ferrero has expanded production and sales offices first to France, then to Belgium, Holland, Austria, Switzerland, Sweden, the United Kingdom, Ireland and Spain. In the decades that followed, enterprises and factories were opened in North and South America, Southeast Asia, Eastern Europe, Africa, and Australia. Most recently also in Turkey, Mexico and China
(2)Mergers and Acquisitions (M&A) transactions, by Ferrero SpA, in recent years:
– 2014, acquisition of Oltan (now Ferrero Findik, Turkey), a global leader in hazelnut harvesting, roasting and sales,
– 2015, acquisition of 30 percent of shares in Thorntons Group (UK, chocolate, €131 million),
– 2016, purchase of Delacre (Delacre and DeliChoc brands, Belgium, premium cookies) from United Biscuits,
– 2017, U.S. purchase of Fannie May (chocolate) and Ferrara Candy Company (candy),
– 2018, acquisition of Nestlé’s confectionery division in the US (US$ 2.8 billion, excluding the Kit Kat brand),
– 2019, purchase of a number of plants in the U.S. and brands of Kellogg’s (cookies, snacks with fruit and fruit flavors, ice cream cones and cakes, US$ 1.3 billion),
– 2019-2020, purchase of Campbell Soup Company’s shares in the Kelsen Group (Royal Dansk and Kjeldsens brands, Denmark, cookies and snacks, US$ 300 million. Transfer to be completed within the next few months)
(3) See reg. EU 165/10, amending the former reg. EC 1881/06. The aflatoxin thresholds allowed in hazelnuts ‘intended for direct human consumption or use as ingredients in food products‘ are increased:
– 2 to 5 μg/kg (aflatoxin B1)
– 4 to 10 μg/kg (sum of aflatoxins B1, B2, G1 and G2)
(4) SEE https://www.unicef.it/Allegati/Convenzione_diritti_infanzia_1.pdf
Dario Dongo, lawyer and journalist, PhD in international food law, founder of WIISE (FARE - GIFT - Food Times) and Égalité.
Graduated in law, master in Food, Law & Finance. You have explored the theme of green procurement and urban food policies in the International Cooperation and Peace sector of the City of Turin.
