Piloting the Usda Guidelines in Turkey's Hazelnut Supply Chain
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PARTNERSHIP TO PREVENT CHILD AND FORCED LABOR IN IMPORTED AGRICULTURAL PRODUCTS: PILOTING THE USDA GUIDELINES IN TURKEY’S HAZELNUT SUPPLY CHAIN Hazelnut Supply Chain: Policies, Communication, Complaint Mechanisms, Mapping and Risk Assessment, Monitoring and Complaints, Improvement, Internal Monitoring (November 2015 – June 2018) APROJECT SUMMARY: The Fair Labor Association (FLA) partners with Nestlé and its two main hazelnut supp- Dünyadaki fındık üretiminin %70’i ve ihracatının %82’si Türkiye tarafından gerçekleştirilmektedir. 2012 yılında liers in Turkey, Balsu and Olam-Progida, to address child labor in their hazelnut supply chain by strengthening uygulanan Ulusal Çocuk İş Gücü Anketine göre, Türkiye’de 6 ve 17 yaş arası çocukların %5.9’u (yaklaşık 893,000 Geographic Distribution and Daily Capacity of Hazelnut Cracking Factories PROJECT SCOPE / Private Sector their internal monitoring and remediation systems. The 31-month-long project will design and pilot a comp- çocuk) çalışmakta ve çalışan çocukların %44.7’si tarım sektöründe yer almaktadır. Bu çocukların %52.6’sı dü- / Hazelnut Cracking Plant / PROVINCES No. of Factories Capacity (Tonne-Nut/8 Hours) Hazelnut Cracking Plant rehensive, sustainable program that implements the U.S. Department of Agriculture’s (USDA’s) Guidelines for zenli ve günlük çalışanlarken, %46.2’sini ücretsiz aile işçiliği yapan çocuklar oluşturmaktadır. Hazelnut Processing Plant Sakarya 21 840 Eliminating Child and Forced Labor in Agricultural Supply Chains. The project has a particular focus on preven- The main objective of the Project is to design and pilot a detailed and sustainable programme covering all Düzce 17 875 ting children from laboring in hazelnut production and will be implemented in approximately 1,000 hazelnut aspects of the USDA Guidelines for Nestlé A.A, Olam and Balsu. The sub-objectives of the Project are: Zonguldak 6 270 gardens in the regions of Ordu and Sakarya. Samsun 13 605 (1) Establish and pilot a sustainable program to prevent child labor in the hazelnut supply chain in Turkey Ordu 41 1.898 BACKGROUND: Turkey is the world’s largest producer and exporter of hazelnuts and represents about 70 per- through implementation of the USDA’s Guidelines; Giresun 21 672 cent and 82 percent of the world’s production and exports of hazelnuts, respectively. According to the National Trabzon 9 237 Child Labor Force Survey, 2012, 5.9% of children between 6 and 17 years of age in Turkey (or about 893,000 (2) Undertake research, evaluation, and collection of reliable data on child labor, in order to measure the impact Hazelnut Processing Plant of the program on child labor in the Turkish hazelnut supply chain; Total 128 5,397 children), were working, of which 44.7% were employed in the agricultural sector. Of these, 52.6% worked as Source: 2015 Hazelnut Report of the General Directorate of Cooperatives, Ministry of Customs regular or casual employees, while 46.2% worked as unpaid family workers. (3) Document lessons learned and make recommendations for future application of the USDA guidelines. and Trade As of the end of 2014, Nestlé is purchasing 65% of the global hazelnut sales volume from Turkey. 4 million kg out of the total 7 million kg of hazelnut Nestlé purchases is from Tur- key. This total amount of hazelnut is supplied by Balsu and OLAM-Progıda. FLA provides indepen- dent external moni- toring services to its member Nestlé. Supply of Processed Hazelnut FLA provides independent external monito- ring services to its member OLAM-Progıda. Supply of Processed Hazelnut A portion of the hazelnut processing OLAM-Progıda OLAM-Progıda has a ha- Main Countries of Export FLA provides indepen- plants have their own cracking sections. If desires to ensure zelnut processing plant for 2015 dent external moni- companies have their own cracking facili- that the hazelnut in Ordu and a hazelnut Germany toring services to its ties, they purchase the hazelnuts directly supply chain can be cracking plant in both Italy member Balsu. from the producer or from the seller. If they fully monitored by Giresun and Kocaeli. France only process the hazelnuts, they purchase Source: Blacksea Exporters 2016 Union, the year 2020. Poland the products from the hazelnut cracking Canada companies. It is claimed that Turkey has Belgium close to 50 hazelnut processing plants. Austria These companies process the hazelnuts Switzerland according to the demands of the hazelnut Holland traders or processed goods manufactu- England rers. Some companies who produce pro- Team: 4 / HAZELNUT PROCESSINGSTAGE cessed goods have both cracking facilities Spain Team: 1- Procurement Officer and processing facilities; they purchase China Sustainability Section Manager 2- Quality Assurance Officer their hazelnut directly from the producer Russian Federation (Kocaeli Team) 3- WHS Expert or sellers who supply unshelled hazelnuts. Egypt Social responsibility and 4- Agricultural Engineer Workers are employed according to the Australia communication officer 5- Project Engineer capacity of the hazelnut processing plant Agricultural engineers Training and the load of work during the year. FLA – Independent External Monitoring provided The FLA prepares an annual evaluation by FLA. Social Programmes Social report by conducting external monito- Sale of Shelled Hazelnut ring activities for the hazelnut supply chain in the name of Nestlé in the OLAM-Progıda BALSU procures the hazelnut orchards of Balsu, including The FLA prepares an annual evaluation has its own shelled hazelnuts the ones which supply Nestlé. Nestlé report by conducting external hazelnut crac- from the Nuteks and Balsu are members of the FLA. monitoring activities for the hazelnut king plant. hazelnut factory. supply chain in the name of Nestlé in Hazelnut cracking factories are general- the hazelnut orchards of Olam-Progıda, Programmes Social ly active between the months of August including the ones which supply FLA – Independent External Monitoring Transportation of Cracked Hazelnut The social programmes of OLAM- and January and carry out the process to Most of the social prog- Nestlé. Sale of Unshelled Hazelnut rammes implemented 60% Progıda are implemented directly crack the shell of the hazelnuts. They are at the orchard level of with their own staff and also with located in the regions where hazelnuts BALSU is run by the Genç HAZELNUT the support of the Foundation for are produced. The process at the hazelnut Hayat Foundation. HAZELNUT the Support of Women’s Work for cracking and shelling factories include the CRACKING manavs and also orchard owners following: the harvested and dried hazel- directly. The social programmes nuts from the farmers or from sellers are CRACKING OLAM procures 60% of the generally include hazelnut workers, brought to the hazelnut cracking factory FACTORIES Companies are establishing databases at hazelnuts it produces as shelled Internal Monitoring System (IMS) agricultural intermediaries, orchard in sacks and hazelnuts are stored in silos the level of orchards and conduct monito- FACTORIES hazelnuts from two separate owners and sellers. by means of carrying the hazelnuts with a ring activities at this level. The monitoring hazelnut cracking companies. 3 / HAZELNUT CRACKINGSTAGE PROCESS activities generally cover orchard practices z elevator. The hazelnuts are then cracked and records are especially kept for en- at the mill and shelled. Temporary workers terprises in the scope of Good Agricultural are employed at these factories. Practices. In addition, if the orchard owner has participated in the UTZ Certified programme, their records are kept at the orchard level. Genç Hayat Foundation “In a Nutshell” Internal Monitoring System (IMS) 90% Project Aimed to inform hazelnut producers (to which seasonal migratory agricultural workers pro- OLAM buys 90% of vide services), intermediaries who coordinate its hazelnuts from the workers, local communities, administrative When the hazelnut has dried, it is packed the sellers. units of local authorities about topics such as Sale of Unshelled Sale of Unshelled into sacks and stored. There are three child labour, children’s rights and social rights options for the orchard owner to sell the and to support education of children. Hazelnut Hazelnut hazelnuts up front or by consignation to Project activities be paid at the time of closing accounts at the price to be determined by the hazelnut • Volunteer training exchange: (a) to sellers who are the local • Seminars for owners of hazelnut orchards hazelnut traders, (b) to owners of hazelnut • Teacher training Technical and Social Programmes cracking factories, (c) to owners of hazel- • Student activities Sale of Unshelled Hazelnut nut cracking and also hazelnut processing There are 60 sellers which • Monitoring & evaluation activities factories. The sellers store the hazelnuts OLAM is in contact with. The they purchase within their own means. Project attainments SELLER sustainability unit works SELLER They sell the hazelnuts to hazelnut crac- • Self recognition, (Hazelnut Trader) with 32 of these sellers. (Hazelnut Trader) king factories or to factories which both • Improved communication skills, crack and process hazelnuts. The sellers • Recognition of prejudices, require workers during the process of • Improved team work skills, 2 / INTERMEDIARY TRADERS SELLERS OF HAZELNUT: STAGE loading and storage. They generally work • Gaining of goal setting skills. with a payment of a daily fee. It is stated In a Nutshell Project Sale of Unshelled Hazelnut Source: http://genchayat.org/?page_id=8287