Thailand is a prominent world supplier of poultry meat products. During the last couple of decades the nation’s domestic production has experienced several booms, as the poultry industry has evolved into a main ingredient of Thailand’s objective of becoming “the kitchen of the world”. The EU has become its biggest market for export. About 270, 000 tonnes of poultry meat products were shipped from Thailand to the EU in 2014.

Sweden has imported poultry products from Thailand since at least the late 1990s. In 2014 Thailand was Sweden’s second largest supplier of processed poultry products, after Denmark. Recently Sweden launched a National Action Plan for Business and Human Rights with the explicit expectation that all Swedish companies shall respect human rights, as specified in the United Nations Guiding Principles on Business and Human Rights (UNGP). With this report Swedwatch aims to investigate the levels of social responsibility taken by Swedish stakeholders in their trade with Thai suppliers, from the perspective of the above mentioned standards.

Thai industries are grappling with a shortage of domestic labour. Like many of Thailand’s labour intensive sectors the poultry industry too has found a remedy across the borders, in the neighboring countries. In search for better salaries and the possibility to send money back home, millions of migrant workers from mainly Cambodia and Myanmar have formed the lowest level of Thailand’s labour pyramid. Many of these people have also become victims of unscrupulous employers and recruiters as well as corrupt officials. This report indicates that violations of migrant workers’ rights occur in Thailand’s poultry industry, in resemblance to other Thai sectors that have been exposed by the media during the latest years. According to the global labour rights organization Solidarity Center, migrant workers in Thailand experience some of the worst abuse in the world.

Interviews with 98 migrant workers employed by four different Thai poultry producers, that all have exported to Sweden during the last three years, show an extensive variation of violations. In total, six factories were included in the field study#1. Based on the interviews, four of the factories were found to act in breach of many or all of Thailand’s main labour and social protection laws as well as international laws and standards formulated by the UN, ILO and others, at the time of the field study.

Migrant workers at all factories included in the study state that personal documents such as passports or work permits have been confiscated by their employers or recruitment agencies. The interviews reveal that workers are in different levels of debt bondage due to excessive recruitment fees and other costs at all selected factories. Interviewees at all factories stated that they had not received health insurance though fees were deducted from their salaries. These practices are only a few examples revealed by the field study. All are indicators of trafficking of adults for labour exploitation, according to the International Labour Organization, ILO.

Workers at four of the six factories said there was child labour#2, at three of the factories with workers as young as 14 years old. Employing youth under 15 years of age is in breach of Thailand’s Labour Protection Act of 1998.

Thai poultry meat products follow a complex supply chain before they reach the consumer in private restaurants and cafés, public hospitals and schools or at family dinner tables in Sweden. The EU legislation regarding indication of origin on processed food means that products labelled as having an EU country as origin, actually may come from third countries such as Thailand. This makes it near impossible to estimate the total volume of Thai poultry imported to the Swedish market annually. According to one of the Swedish importers, at least half of all the Thai poultry meat that is consumed in Sweden is not included in the official statistics of import.

Swedwatch’s survey of Swedish stakeholders involved in the import of poultry products from Thailand shows that this decades long business relation was initiated with a focus on animal welfare and product quality, and with no meaningful due diligence performed on potential adverse human rights impacts in the industry#3. Of the stakeholders interviewed for this report only Axfood, a wholesaler, has started to perform due diligence on adverse human rights impacts in Thailand’s poultry industry. Other than that, the UNGP and the Swedish government’s National Action Plan on Business and Human Rights are still unknown to many actors in Sweden’s food sector.

This report further reveals extensive shortcomings of social responsibility in Swedish public procurement of food. Public procurers at county councils and municipalities do not have the routines to set social criteria in their procurement of food. Audits to ensure that their codes of conduct are fulfilled throughout their supply chains are generally not performed due to lack of resources. This means that children and adults in Sweden’s public institutions such as schools, retirement homes and hospitals may be served poultry products produced by exploited migrant workers.

For this report Swedwatch has also conducted a survey of supermarket chains on the Swedish market. The focus was on house brands containing poultry products. The results show that one out of five food companies included in the survey use Thai poultry in their house brands.

This report makes several recommendations. Thai companies should ensure that all forms of unlawful recruitment fees are stopped and ensure that brokers are not charging migrant workers costs leading to debt bondage. As a minimum all the companies should comply with Thai labour legislation. Stakeholders at the Swedish food market that are linked to the import of Thai poultry products should assure that their suppliers follow international labour right standards as expressed in the ILO core conventions. Importers and wholesalers should conduct due diligence on adverse human rights impacts and show with commitment and transparency how potential risks are identified and mitigated, in accordance with the guidelines of the UNGP.

Food should be identified as a risk category in trade, not only when it comes to animal welfare and product quality.

Two factories owned by CP Foods Public Company Limited, two by Laemthong Poultry Co. Ltd, one by the Saha Farms Group (under the name of Golden Line Business Co. Ltd) and one by the Centaco Group (under the name of Sky Food Co. Ltd).