The Sugarcane Value Chain in Latin America and Asia: Main Actors, Market Mechanisms, Labour Issues

Total Page:16

File Type:pdf, Size:1020Kb

The Sugarcane Value Chain in Latin America and Asia: Main Actors, Market Mechanisms, Labour Issues The Sugarcane Value Chain in Latin America and Asia Main Actors, Market Mechanisms, Labour Issues and Opportunities Diana Quiroz, Barbara Kuepper, Gerard Rijk, Eline Achterberg 5 May 2021 Colophon This research report is commissioned and published by CNV Internationaal. About Profundo With profound research and advice, Profundo aims to make a practical contribution to a sustainable world and social justice. Quality comes first, aiming at the needs of our clients. Thematically we focus on commodity chains, the financial sector and corporate social responsibility. More information on Profundo can be found at www.profundo.nl. Authorship This report was researched and written by Diana Quiroz, Barbara Kuepper, Gerard Rijk and Eline Achterberg, with contributions of Ward Warmerdam and Mara Werkman. Correct citation of this document: Quiroz, D., Kuepper, B., Rijk, G., and E. Achterberg (2021, May), The Sugarcane Value Chain in Latin America and Asia, Amsterdam, The Netherlands: Profundo. Front page cover photograph by Carl Davies, CSIRO is licensed under CC BY 3.0. Copyright © 2021 CNV Internationaal Disclaimer Profundo observes the greatest possible care in collecting information and drafting publications but cannot guarantee that this report is complete. Profundo assumes no responsibility for errors in the sources used, nor for changes after the date of publication. The report is provided for informational purposes and is not to be read as providing endorsements, representations or warranties of any kind whatsoever. Profundo will not accept any liability for damage arising from the use of this publication. Contents Summary ................................................................................................................................... 1 Abbreviations ............................................................................................................................. 3 Introduction ............................................................................................................................... 4 Methodology ........................................................................................................ 6 1.1 Objective ........................................................................................................................... 6 1.2 Sugar sector mapping ...................................................................................................... 6 1.2.1 Global developments and dynamics in the sugar sector .............................................. 6 1.2.2 Country sector profiles ..................................................................................................... 7 1.2.3 Relationships with Dutch financial institutions .............................................................. 7 1.2.4 Price-setting, sales and profits ........................................................................................ 7 1.2.5 Environmental and social responsibility issues ............................................................. 8 The global sugarcane market ................................................................................ 9 2.1 Global sugar crop production and the role of sugarcane .............................................. 9 2.2 Key products derived from sugarcane .......................................................................... 10 2.3 Global sugar market developments and drivers .......................................................... 11 2.3.1 Market volatility .............................................................................................................. 11 2.3.2 Global sugar consumption ............................................................................................. 13 2.3.3 The impact of the COVID-19 pandemic ........................................................................ 13 2.3.4 Sugar consumption outlook .......................................................................................... 13 2.4 Main social and environmental sustainability issues in sugarcane production ........ 14 2.5 Voluntary certification schemes for sugarcane production ........................................ 16 2.6 Main traders of sugarcane products ............................................................................. 17 2.7 Main buyers of cane sugar ............................................................................................ 18 The sugarcane sector in selected countries ........................................................ 19 3.1 Role of focus countries in sugar production ................................................................ 19 3.2 Direct Dutch imports of sugarcane products from focus countries ........................... 20 3.3 Bolivia .............................................................................................................................. 20 3.3.1 Production of sugarcane and derived products ........................................................... 20 3.3.2 Key industry actors ......................................................................................................... 21 3.3.3 Trade relationships ......................................................................................................... 22 3.3.4 Impact of COVID-19 ........................................................................................................ 23 3.3.5 Living wages ................................................................................................................... 23 3.4 Colombia ......................................................................................................................... 24 3.4.1 Production of sugarcane and derived products ........................................................... 24 3.4.2 Key industry actors ......................................................................................................... 25 3.4.3 Trade relationships ......................................................................................................... 26 3.4.4 Impacts of COVID-19 ...................................................................................................... 26 3.4.5 Living wages ................................................................................................................... 27 3.5 Guatemala ....................................................................................................................... 27 3.5.1 Production of sugarcane and derived products ........................................................... 27 3.5.2 Key industry actors ......................................................................................................... 29 3.5.3 Trade relationships ......................................................................................................... 30 3.5.4 Impact of COVID-19 ........................................................................................................ 30 3.5.5 Living wages ................................................................................................................... 31 3.6 Nicaragua ........................................................................................................................ 31 3.6.1 Production of sugarcane and derived products ........................................................... 31 3.6.2 Key industry actors ......................................................................................................... 32 3.6.3 Trade relationships ......................................................................................................... 33 3.6.4 Impact of COVID-19 ........................................................................................................ 33 3.6.5 Living wages ................................................................................................................... 33 3.7 Peru ................................................................................................................................. 33 3.7.1 Production of sugarcane and derived products ........................................................... 33 3.7.2 Key industry actors ......................................................................................................... 34 3.7.3 Trade relationships ......................................................................................................... 35 3.7.4 Impact of COVID-19 ........................................................................................................ 36 3.7.5 Living wages ................................................................................................................... 36 3.8 Cambodia ........................................................................................................................ 37 3.8.1 Sugarcane production and derived products ............................................................... 37 3.8.2 Key industry actors ......................................................................................................... 37 3.8.3 Trade relationships ......................................................................................................... 39 3.8.4 Impact of COVID-19 ........................................................................................................ 40 3.8.5 Living wages ................................................................................................................... 40 3.9 Indonesia ........................................................................................................................
Recommended publications
  • The 2017 ITUC Global Rights Index the WORLD's WORST
    THE WORLD'S WORST COUNTRIES FOR WORKERS The 2017 ITUC Global Rights Index | 4 The International Trade Union Confederation (ITUC) is a confederation of national trade union centres, each of which links trade unions of that particular country. It was established on 1 November 2006, bringing together the organisations which were formerly affiliated to the ICFTU and WCL (both now dissolved) as well as a number of national trade union centres which had no international affiliation at the time. The new Confederation has 340 affiliated organisations in 163 countries and territories on all five continents, with a membership of 181 million, 40 per cent of whom are women. It is also a partner in “Global Unions” together with the Trade Union Advisory Committee to the OECD and the Global Union Federations (GUFs) which link together national unions from a particular trade or industry at international level. The ITUC has specialised offices in a number of countries around the world, and has General Consultative Status with the Economic and Social Council of the United Nations. The 2017 ITUC Global Rights Index | 6 Foreword .............................................9 ASIA .................................................. 70 Bangladesh ....................................... 71 Part I ..................................................13 Cambodia .......................................... 71 The 2017 Results ...............................14 China ................................................ 72 The ITUC Global Rights Index ...............19 Fiji
    [Show full text]
  • Colombia: Old and New Patterns of Violence
    COLOMBIA: OLD AND NEW PATTERNS OF VIOLENCE ULRICH OSLENDER The peace of the rich, is a war against the poor Graffiti on a wall in central Medellín, 2003. n 15 October 2005, Orlando Valencia travelled with a group of nine Oother people on a dirt track road in Colombia’s north-western Chocó Department. Near the small town of Belén de Bajirá their car was stopped by police. Orlando and two fellow travellers were taken to the local police station for interrogation. This most likely did not come as a great surprise to him. His outspoken activism against the unlawful, forcible implementa- tion of African Palm plantations in his native Curvaradó region had se- riously annoyed the agro-industrial companies eager to exploit the lands in this tropical rainforest environment. As a recognised community leader, Orlando had indefatigably denounced the impunity with which right-wing paramilitary groups at the service of these companies threatened local pop- ulations and killed community leaders. He had been invited by the US- based human rights NGO Lutheran World Relief (LWR) to address their Partnering for Peace conference due to be held in Chicago on 21 October that year.1 However, the US Embassy in Bogotá had refused him a visa. So he returned to the Curvaradó region, accompanied by fellow community members and a representative of the Montreal-based activist group Projet Accompagnement Solidarité Colombie (PASC). The latter – together with volunteers from International Peace Brigades – provides an international presence in three ‘humanitarian zones’ set up in the region to protect Afro- Colombian civilians against murder, kidnapping and torture by military and paramilitary forces.
    [Show full text]
  • Proposed US-Colombia Free Trade Agreement
    Proposed U.S.-Colombia Free Trade Agreement: Background and Issues M. Angeles Villarreal Specialist in International Trade and Finance June 29, 2011 Congressional Research Service 7-5700 www.crs.gov RL34470 CRS Report for Congress Prepared for Members and Committees of Congress Proposed U.S.-Colombia Free Trade Agreement: Background and Issues Summary The proposed U.S.-Colombia Trade Promotion Agreement, also called the U.S.-Colombia Free Trade Agreement (CFTA), was signed by the United States and Colombia on November 22, 2006. The agreement must be approved by the U.S. Congress before it can enter into force. The Colombian Congress approved the agreement in June 2007 and again in October 2007, after it was modified to include new provisions on labor and the environment. If approved by the U.S. Congress, the agreement would immediately eliminate duties on 80% of U.S. exports of consumer and industrial products to Colombia. Most remaining tariffs would be eliminated within 10 years of implementation. About 90% of U.S. imports from Colombia enter the United States duty-free under trade preference programs or through normal trade relations, while U.S. exports to Colombia face duties of 20% or more. The 112th Congress may be considering implementing legislation for the proposed CFTA. In a press release on June 28, 2011, United States Trade Representative (USTR) Ron Kirk welcomed the scheduling by the Senate Finance Committee of informal or “mock” markups for three separate draft implementing bills for pending FTAs with Colombia, Panama, and South Korea. USTR Kirk also welcomed the Senate Finance Committee’s inclusion of a renewal of the Andean Trade Preference Act (ATPA) and the Generalized System of Preferences (GSP) in the draft implementing legislation for the U.S.-Colombia FTA.
    [Show full text]
  • Dossier Colombia
    Mining Palm oil Dairy DOSSIER COLOMBIA Organisations and trade unions in Colombia and Text: Laura Rangel for Transnational Institute in Europe, including the European Trade Union Confederation (ETUC) and the International Trade Laura Rangel is a lawyer and member of the Union Federation (ITUC) have frequently argued network of development-, students,- trade union-, against the EU-Colombia Free Trade Agreement. women-, and human rights organisation Recalca in They state that it implies gross violations of Colombia. human rights, and the rights of trade unionists in particular. Colombia has the highest number of Design: Ricardo Santos trade union murders in the world. Also from the parliamentarian side critiques are being articulated. A broad range of Latin American and European parliamentarians are against the agreement because they argue that the benefits Published by TNI May 2012 for the European investors can never be prioritized above human rights. They point to the numerous farmers and communities of indigenous peoples that are expelled from their lands for mining and palm oil plantations. This dossier maps out the situation in the mining industry, dairy and palm oil sectors and looks at the possible implications that the FTA will have for those sectors. Colombian coal in the European Union: free access, free exploitation In the Colombia-EU FTA, nothing has been defined in relation to coal, as coal is already allowed to enter this market freely due to the EU’s interest in guaranteeing its energy supply. Characterisation of the coal business two-thirds of the total mining sales and the equivalent of almost half of oil exports.
    [Show full text]
  • International Trade Union Confederation (Ituc)
    INTERNATIONAL TRADE UNION CONFEDERATION (ITUC) INTERNATIONALLY RECOGNISED CORE LABOUR STANDARDS IN COLOMBIA REPORT FOR THE WTO GENERAL COUNCIL REVIEW OF THE TRADE POLICIES OF COLOMBIA (Geneva, 26 and 28 June, 2012) EXECUTIVE SUMMARY Colombia has ratified all eight core ILO labour Conventions. In view of restrictions on the trade union rights of workers, discrimination, child labour, and forced labour, determined measures are needed to comply with the commitments Colombia accepted at Singapore, Geneva and Doha in the WTO Ministerial Declarations over 1996-2001, and in the ILO’s Declaration on Fundamental Principles and Rights at Work and its 2008 Social Justice Declaration. Trade unions in Colombia are under constant attack and threat, resulting in reduced membership and bargaining power. Employers often fail to engage in good faith collective bargaining and the state does not protect workers who seek collective agreements or initiate a strike to pursue their demands. Workers face significant difficulties in exercising the right to organise and collective bargaining and to strike due to of fatal attacks as well as death threats, disappearances, attempts on their lives and raids. The vast majority of these crimes remain unpunished. Bargaining power is also reduced by the large numbers of irregular and precarious workers who are barred from a long term contract. Colombia’s laws provide insufficient protection for women, Afro- Colombians, indigenous people and other groups that are frequently discriminated against. Activists, indigenous leaders and peasant leaders have been targeted for murder and hundreds receive threats. Indigenous people and Afro-Colombians are adversely affected by the internal conflicts which can result in forced displacements.
    [Show full text]
  • Colombia Free Trade Agreement - a Historical Placement of the FTA
    DePaul University Via Sapientiae College of Liberal Arts & Social Sciences Theses and Dissertations College of Liberal Arts and Social Sciences 8-2010 The U.S. - Colombia free trade agreement - A historical placement of the FTA Declan Healey DePaul University, [email protected] Follow this and additional works at: https://via.library.depaul.edu/etd Recommended Citation Healey, Declan, "The U.S. - Colombia free trade agreement - A historical placement of the FTA" (2010). College of Liberal Arts & Social Sciences Theses and Dissertations. 10. https://via.library.depaul.edu/etd/10 This Thesis is brought to you for free and open access by the College of Liberal Arts and Social Sciences at Via Sapientiae. It has been accepted for inclusion in College of Liberal Arts & Social Sciences Theses and Dissertations by an authorized administrator of Via Sapientiae. For more information, please contact [email protected]. DEPAUL UNIVERSITY The U.S. – Colombia Free Trade Agreement A Historical Placement of the FTA Declan X Healey 7/26/2010 Abstract There is a pending free trade agreement (FTA) between the United States (U.S.) and Colombia in U.S. Congress. The FTA aims to promote regional economic prosperity. This FTA should be redone as it will not achieve either of these goals. The FTA will cause an increase in drug production, violence, and displacement in Colombia‘s agricultural sector. The FTA is not a result of globalization bringing two countries to be equal trading partners as its authors state. The FTA instead is an example of the U.S. continuing its policy agenda towards Colombia that has existed for over 50 years.
    [Show full text]
  • Colombia's Classroom Wars
    Education International Internationale de l’Education Internacional de la Educación Bildungsinternationale COLOMBIA’s CLASSROOM WARS Political violence against education sector trade unions September 2009 Dr Mario Novelli Education International Contents Author’s foreword 1 Introduction 2 Political violence against educators: a growing problem 3 Understanding teachers as trade unionists 4 Background to education unions in colombia 6 Background to political violence in colombia 7 Historical context of state/civil society relations in colombia 7 Paramilitarism and the war against trade unionism 8 Recent political developments in colombia 9 Education and conflict in colombia 11 How are educators’ human rights violated? 13 The facts and figures 13 Political violence against education sector trade unions Political Assassinations 13 Death threats 16 Forced displacement 18 Arbitrary detention 20 Forced disappearances 22 Analysing the patterns of violence against educators 24 What strategies have been developed to mitigate and Manage the violence? 26 National legal and judicial protection measures 26 Setting up of human rights departments in each affiliate 27 International involvement with the human rights movement 27 Colombia’s classroom wars: classroom Colombia’s Conclusions 29 References 34 September 2009 Prepared for Education International by Dr Mario Novelli IS Academie: Education & Development, AMIDST, University of Amsterdam © 2009 Education International ISBN 978-92-95089-02-0 (paperback) 2 Printed in Belgium ISBN 978-92-95089-03-7 (PDF)
    [Show full text]
  • Organizing for Social Justice
    REPORT OF THE DIRECTOR-GENERAL ORGANIZING FOR SOCIAL JUSTICE Global Report under the Follow-up to the ILO Declaration on Fundamental Principles and Rights at Work INTERNATIONAL LABOUR CONFERENCE 92nd Session 2004 Report I (B) INTERNATIONAL LABOUR OFFICE GENEVA This Report may also be consulted on the ILO Internet site (http://www.ilo.org/declaration). ISBN 92-2-113030-4 ISSN 0074-6681 First published 2004 The designations employed in ILO publications, which are in conformity with United Nations practice, and the presentation of material therein do not imply the expression of any opinion whatsoever on the part of the International Labour Office concerning the legal status of any country, area or territory or of its authorities, or concerning the delimitation of its frontiers. Reference to names of firms and commercial products and processes does not imply their endorsement by the International Labour Office, and any failure to mention a particular firm, commercial product or process is not a sign of disapproval. ILO publications can be obtained through major booksellers or ILO local offices in many countries, or direct from ILO Publications, International Labour Office, CH-1211 Geneva 22, Switzerland. Catalogues or lists of new publications are available free of charge from the above address. Photocomposed by the International Labour Office, Geneva, Switzerland DTP Printed in Switzerland ATA Contents Introduction . 1 1. Freedom of association and collective bargaining: The foundations for democratic development . 7 Enabling rights . 7 Freedom of association and building democracy . 8 Interest reconciliation and the modernization of the State. 10 Dialogue for development. 11 A rights-based approach to dynamic labour markets .
    [Show full text]
  • The Role of the Catholic Church in Colombian Social Development Post World War Ii
    THE ROLE OF THE CATHOLIC CHURCH IN COLOMBIAN SOCIAL DEVELOPMENT POST WORLD WAR II By JESSICA JOY GONZALEZ A THESIS PRESENTED TO THE GRADUATE SCHOOL OF THE UNIVERSITY OF FLORIDA IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF MASTER OF ARTS UNIVERSITY OF FLORIDA 2007 1 © 2007 Jessica Gonzalez 2 To my parents, Jorge and Helen. Thank you for you love, support and strength. To my Aunts Mary and Martha. Thank you for your love and encouragement 3 ACKNOWLEDGMENTS I would like to thank my supervisory committee chair, Dr. Anna Peterson, for her support, guidance and encouragement throughout the writing process and the numerous topic changes. I would also like to thank my committee members, Dr. Charles Wood and Dr. Phillip Williams for their support and flexibility. All three members of my committee reflect the commitment to intelligent dialogue that made my University of Florida education an exciting and memorable experience. I would like to thank my family for their unwavering support and constant companionship. I would like to especially thank my mother for encouraging me to pursue my master’s degree and my dreams. Without her guidance I would not be where I am today. I would like to thank my father for being my silent strength and always waiting with open arms. 4 TABLE OF CONTENTS page ACKNOWLEDGMENTS ...............................................................................................................4 ABSTRACT.....................................................................................................................................7
    [Show full text]
  • AMERICAS America A5.Qxp 31/03/2005 23:01 Page 104 America A5.Qxp 31/03/2005 23:01 Page 105
    America_a5.qxp 31/03/2005 23:01 Page 103 AMERICAS America_a5.qxp 31/03/2005 23:01 Page 104 America_a5.qxp 31/03/2005 23:01 Page 105 THE SITUATION OF HUMAN RIGHTS DEFENDERS This year again, the Americas were one of the most dangerous regions in the world for human rights defenders. In 2004, defenders and their families were victims of assassination (Argentina, Brazil, Colombia, Guatemala), enforced disappearance (Colombia), torture (Colombia), attacks and death threats (Bolivia, Colombia, Ecuador, Guatemala, Haiti, Honduras, Mexico, Peru), as well as harassment and surveillance (Colombia, Guatemala, Honduras, Mexico). The perpetra- tors of these violations (representatives of the government authorities, the army, and armed or private groups) continued to enjoy the greatest impunity. Defenders were also subjected to arrest, legal actions and arbitrary detention (Argentina, Chile, Colombia, Cuba, Ecuador, Guatemala, Mexico), and some countries such as Argentina, Chile, Colombia and the United States increasingly invoked legislation on national security to justify the retalia- tion for their activities. Lastly, human rights defenders were targeted by smear campaigns undertaken at the highest levels of the State (Colombia, Venezuela) in order to discredit them in the eyes of the population, which in some cases had direct repercussions on their personal safety. Whereas human rights defenders play a major role in the region, notably with regard to the fight against impunity, the protection of eco- nomic and social rights and the defence of indigenous populations, they had to cope with a particularly hostile attitude from the authorities, which failed to meet their obligation to protect them - when they were not directly responsible for the violations perpetrated against them.
    [Show full text]
  • Social Dialogue and Tercerizados in Colombia's Palm Oil Industry
    SOCIAL DIALOGUE AND TERCERIZADOS IN COLOMBIA’S PALM OIL INDUSTRY THE CASES OF PALMAS Y EXTRACTORA MONTERREY S.A. AND PALMAS DE CESAR mondiaalfnv.nl CONTENTS EXECUTIVE SUMMARY 3 FOREWORD 5 ACKNOWLEDGEMENTS 6 1. SOCIO-POLITICAL CONTEXT: MAQUILLAGE…C’EST CAMOUFLAGE 7 2. THE EXPANSION OF COLOMBIA’S PALM OIL INDUSTRY AND THE HISTORY OF THE LABOUR MOVEMENT 9 2.1 Tercerización as an inherent characteristic of Colombia’s palm oil industry 10 2.2 Trade unions, armed conflict and labour flexibilisation 10 2.3 Same story, different name: from CTAs to SAS, temporary work agencies and the rest 11 3. SOCIO-ECONOMIC CONTEXT: WORK IN COLOMBIA´S PALM OIL SECTOR 13 3.1 What’s in a name? “Formal” employment in Colombia’s palm oil sector 13 4. LEGAL FRAMEWORK: HECHA LA LEY HECHA LA TRAMPA 15 5. COLLECTIVE BARGAINING IN COLOMBIA’S PALM OIL INDUSTRY 17 6. THE LUZECITAS OR BEACONS OF HOPE: THE CASES OF PALMAS Y EXTRACTORA MONTERREY S.A. 19 AND PALMAS DE CESAR 6.1 The drivers behind formalisation 19 6.2 Putting social dialogue into practice: creating a culture of trust 21 6.3 Positive impact of formalisation and social dialogue 22 6.3.1 Workers’ perspective 22 6.3.2 Employers’ perspective 22 6.4 And now? Maintaining the peace 23 7. STAKEHOLDER ANALYSIS 24 7.1 Social Partners 24 7.1.2 Trade unions 25 7.1.3 Palm oil companies 25 7.1.4 Fedepalma 26 7.1.5 Ministry of Labour 27 7.2 Other stakeholders 27 8. CONCLUSION 30 8.1 Enabling conditions for social dialogue 30 8.1.1 Bridging the formal-informal divide 30 8.1.2 Formalisation 30 8.1.3 Connection with community 30 8.1.4 Strong labour organisations 30 8.1.5 History of conflictual industrial relations 30 8.1.6 External mediation 30 8.1.7 Fruitful political context 31 8.1.8 International pressure: the Obama-Santos free trade agreement 31 8.1.9 Support and capacitating by (international) solidarity organisations 31 8.1.10 Enlightened, open-minded leadership 31 Social dialogue and Tercerizados in Colombia’s Palm Oil Industry 1 8.2.
    [Show full text]
  • U.S. Congress Unlikely to Ratify Colombia Trade Agreement Quickly LADB Staff
    University of New Mexico UNM Digital Repository NotiSur Latin America Digital Beat (LADB) 4-18-2008 U.S. Congress Unlikely to Ratify Colombia Trade Agreement Quickly LADB Staff Follow this and additional works at: https://digitalrepository.unm.edu/notisur Recommended Citation LADB Staff. "U.S. Congress Unlikely to Ratify Colombia Trade Agreement Quickly." (2008). https://digitalrepository.unm.edu/ notisur/13680 This Article is brought to you for free and open access by the Latin America Digital Beat (LADB) at UNM Digital Repository. It has been accepted for inclusion in NotiSur by an authorized administrator of UNM Digital Repository. For more information, please contact [email protected]. LADB Article Id: 51142 ISSN: 1060-4189 U.S. Congress Unlikely to Ratify Colombia Trade Agreement Quickly by LADB Staff Category/Department: Colombia Published: 2008-04-18 The US House of Representatives, led by House Speaker Nancy Pelosi (D-CA), has not ratified the free-trade agreement (FTA) negotiated between the US and Colombia, choosing instead to eliminate a rule that would require the Congress to deal with it within 90 legislative days after the president sent it to them. President George W. Bush had been pushing for its quick approval despite indications that it would not pass in the House, and he alleged the deal would be "dead" if Congress did not consider it soon. The Colombia FTA also roiled the 2008 presidential campaign in the US when the top strategist for Democratic candidate Sen. Hillary Clinton (D-NY) was exposed as a lobbyist for the Colombian government on behalf of the FTA, even though Clinton claims to oppose the agreement.
    [Show full text]