South Africa: Study criticizes human rights violations on orange farms

Oranges, mandarins and lemons regularly find their way into the shopping basket of numerous consumers when walking through the supermarket. Germans love all kinds of citrus fruits. Right at the forefront: the orange. In 2020 oranges with a total value of around 443.25 million euros were imported into Germany.

80,398 tons of citrus fruits were imported from South Africa to Germany in 2020

The popular citrus fruits come from South Africa, especially between June and October. With an export volume of 80,400 tons in 2020, South Africa is the second most important supplier of citrus fruits to the German market after Spain.

Some consumers may think of idyllic orange plantations, on which beautiful orange trees are neatly arranged in a row, while the fruits shine against the sun. But a German-South African study tarnishes this picture.

Lack of access to drinking water and acute pesticide poisoning

In the study “Bitter Oranges” by the Rosa Luxemburg Foundation and the South African organization Khanyisa, the dark side of citrus cultivation in the Eastern Cape Province in South Africa is highlighted and those responsible are accused of human rights violations. Lack of access to drinking water, acute pesticide poisoning, the harassment of trade union representatives and unissued employment contracts are examples of how things should go on the plantations every day. According to the study, workers on three of the five farms examined report intimidation and active combating of unionization. On one of the farms, the union representative among the workers was reportedly dismissed for no reason.

One of the five checked citrus farms is even closed with an electrically charged gate, it is said – the workers cannot leave the site independently. The farms produce for packing houses, which in turn supply German supermarket groups.

Unequal distribution of market power within the supply chain

Market power is extremely unevenly distributed within the supply chain. This can be seen, among other things, in problematic trading practices of the supermarket groups, which the suppliers are constantly putting under pressure. Goods are ordered at short notice, often only bought on commission, prices are constantly renegotiated, often no written contracts are concluded.

A kilo of oranges in Germany costs 1.99 euros. Permanent workers get a share of three percent with 0.06 euros. Seasonal workers receive a far smaller share.

The price margins along the supply chain also show an uneven distribution: One kilogram of oranges costs around two euros in the supermarket in Germany. A full 60 cents remain at the level of the German retail trade, while the gross margin of the South African producer of 45 cents is less than a quarter of the final price. According to the authors, full-time South African farm workers who are employed all year round receive a share of just six cents of the two euro seasonal workers.

Supply chain law on the test bench

According to the author of the study, Benjamin Luig, the study results could put the new supply chain law to the test for the first time.

On the basis of the Supply Chain Act, companies should be obliged to enforce compliance with basic labor rights in the supply chains. Above all, this includes adequate occupational health and safety, respect for workers’ freedom of association and access to clean drinking water. The requirement of written supply contracts with a fixing of the price in advance is intended to improve the transparency of the supply chains and the working conditions in the country of origin in the long term.

An external authority is also supposed to check compliance with the law by checking company reports and reviewing complaints regarding the regulation of fines.