Shrimp supply chains face documented human rights risks across all tiers, including hatcheries, shrimp farms, feed mills, processing facilities and distribution networks. Violations include forced labour, informal employment relations, low wages, unsafe working conditions, limited freedom of association, restricted worker voice and discrimination. Buyers’ commercial decisions and purchasing practices are key drivers of these risks, yet they are rarely addressed. Traditional supply chain governance mechanisms – such as audits, traceability and certifications – do not look at these decisions and practices, meaning these tools are insufficient to prevent violations.

Responsible purchasing practices (RPP) provide the missing link, helping buyers to shape pricing, order planning, contract terms and payment schedules in ways that reduce pressure on suppliers and support labour rights.

This report explores the connection between buyers’ purchasing practices and human rights along the shrimp supply chain. It draws on a desk review of reports on working conditions by UN agencies and nongovernmental organisations, academic research on purchasing practices, and an analysis of trade data to demonstrate that human rights risks are found at all tiers of the shrimp supply chain.

‘Governance tools — including audits, certifications, grievance mechanisms, and human rights impact assessments — have limitations in addressing labour risks...Within the scope of this report, the focus is on one specific limitation: these tools do not adequately capture the upstream pressures created by buyers’ purchasing practices, such as pricing, lead times, order volumes, and contractual terms, which shape working conditions. To ensure respect for human rights, addressing these risks requires extending risk management beyond supplier-level monitoring to include the influence of buyers’ business decisions along the supply chain.’

The evidence shows that the compounded impacts of individual aspects of purchasing practices amplify financial pressure on suppliers and systematically shifting risk onto workers, particularly those in informal, temporary or piece-rate employment.

• Downward price pressure [...]
• Sourcing below the cost of production [...]
• Failure to account for increases in the minimum wage [...]
• Poor forecasting & planning [...]
• Hyper-flexibility & last-minute changes to orders [...]
• Delayed payments & long payment terms [...]
• Uneven distribution of risk [...]
• Failure to incorporate the cost of compliance [...]

To address these risks, buyers and retailers should move beyond supply chain governance alone and embed RPP into their commercial decision-making as part of their human rights due diligence under the UNGPs and Organisation for Economic Co-operation and Development’s Due Diligence Guidance for Responsible Business Conduct. To this end, the...recommendations are structured according to ETI’s Common Framework for Responsible Purchasing Practices in Food.

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