Forced Labor and Ethical Sourcing in the Seafood Industry

On June 11, 2024, the U.S. Department of Homeland Security added three new companies to its list of entities likely engaged in forced labor, including a company that processes, sells, and exports frozen seafood, aquatic foods, and other convenience foods. As of June 12, 2024, U.S. Customs and Border Protection (CBP) applies a rebuttable presumption that prohibits goods produced by these entities from entering the United States.

The move signals that U.S. authorities are heightening scrutiny for human rights abuses in supply chains of the world’s most traded food commodity: seafood. But rooting out forced labor in the fishing and aquaculture industries is easier said than done. Rapid growth has led to an increase in illegal and unregulated fishing, with many fishing vessels taking longer voyages of months or even years. This means crews are left on board longer, which increases the risks of forced labor, child labor, and human trafficking of fishers sold into slavery — not to mention overfishing and other environmental misconduct.

In this article, we’ll examine the importance of ethical sourcing in the seafood industry and consider how a better understanding of  your organization’s supply chain can reduce the risk of noncompliance.

Why is ethical sourcing important for the seafood industry?

Ethical sourcing boosts company compliance and profitability in at least four ways: promoting sustainable industry by protecting the sensitive environments on which that industry depends, safeguarding workers, enhancing market opportunities, and bolstering a company’s reputation.

Environmental protection. Ethical sourcing promotes sustainable fishing practices that preserve marine biodiversity and discourage the depletion of fish populations. It addresses the critical need to conserve aquatic ecosystems to enable the industry’s long-term viability.

Worker safety. Responsible sourcing also ensures fair labor practices and the safety of workers involved in fishing and processing. This protects individual workers and helps companies avoid legal repercussions such as fines and other penalties associated with stringent laws governing fishing methods and labor conditions.

Market expansion. Ethical sourcing also opens up market opportunities, particularly in regions with strict import regulations focused on sustainability and ethics. Companies adhering to ethical practices are more likely to gain access to these lucrative markets, enhancing their global competitiveness.

Brand reputation. For consumers, knowing that seafood products are ethically sourced fosters trust in brands and products. Ethical sourcing practices demand rigorous tracking and documentation of the seafood supply chain, which ensures that seafood is sourced from safe and reliable origins, reducing the risk of contamination from illegal or unregulated sources. Suppliers who adhere to ethical practices are also more likely to follow safe handling, storage, and transportation protocols. Further, by avoiding overfished and polluted waters and ensuring healthy working conditions, ethical sourcing helps prevent the spread of diseases common in poorly managed fisheries and crowded, unsanitary processing environments.

For all of these reasons, responsible sourcing is becoming a significant factor in consumer purchasing decisions. The discovery of unethical practices may lead to consumer boycotts, negative media coverage, and loss of trust, all of which can significantly affect a company’s market value and long-term sustainability.

How can seafood companies detect forced labor in their supply chains?

Supply chain traceability enables a company to monitor materials and practices from every stage of production, from harvesting or sourcing raw materials through their processing, packaging, and distribution. While identifying direct suppliers is relatively straightforward, uncovering the multi-tier suppliers down the chain rapidly becomes more complex.

Each seafood product has its own distinct supply chain, encompassing suppliers like farms and fishing vessels, processors, and manufacturers, along with middlemen such as vendors, agents, and traders. This necessitates tailored mapping for each product or service all the way back to the vessel or farm where the fish was initially harvested and potentially even further, to trace the origins of components used in fishmeal.

But these companies rarely operate within a vertically integrated system; instead, most companies are only aware of their immediate suppliers and purchasers. More thorough supply chain mapping would give companies greater insights into the full ecosystem they’re a part of, allowing them to detect and avoid labor abuses and other compliance concerns.

Modern supply chain mapping depends on technology

Today’s seafood supply chain is incredibly complex. It takes sophisticated technology to penetrate the intricate layers involved in sourcing each individual product and component.

Tools like Sourcemap’s N-tier risk mapping can help companies scrutinize every level of their supply chains, from harvest to processing and distribution. This aids in focusing risk assessments and interventions and thereby mitigating the risks of labor abuses.

To explore how Sourcemap can help you increase transparency in your supply chain and ensure compliance with ethical labor standards, schedule a demo today.