Para, Brazil
How is it produced?
Acai berries are produced from the acai palm tree grown in the Amazon rainforest, mainly by small-scale family farms. Growers or workers scale the tall, thin trunks carrying a sharp knife to cut bundles of berries from the top and carry them carefully down (Insider Business, 2022).
Describe the supply chain to the store shelf in Canada:
Once harvested by the locals, the berries are immediately taken to market where they are sold to a series of middlemen and then usually to a larger corporation with a processing plant before being made into frozen puree, dried powder, or pills sold to international markets (Insider Business, 2022).
What is the power balance between the producer and seller?
Due to limited access to markets, extensive use of intermediary sellers, the short shelf-life of the berries, and the extreme poverty and limited resources of the growers, the small producers receive only a very small fraction of the final selling price of the berries . Large corporations selling the final product profit the most while the producers bear all the risks of falling from trees, being cut with knives, working in the jungle heat, or being bitten by snakes, spiders, or scorpions (McCoy, 2021). Children are often used to harvest the berries as they weigh less and can climb the thinner trunks (McCoy, 2021).
Can you recommend changes to the system to improve the balance?
As with plenty of other international commodities, improvement in trade practices could go a long way toward reducing exploitation of local producers. New Canadian legislation in the form of Bill S-211, Fighting Against Forced Labour and Child Labour in Supply Chains Act and to amend the Customs Tariff which comes into effect in 2024 aims to make businesses more accountable for the goods they import (Coon et al, 2023). Fair trade certification may also help smaller producers get a higher price for their product and funds to improve their communities; however, there are drawbacks, such as the requirement to belong to a cooperative (Macatonia, 2013). Alternatively, direct trade cuts out the intermediaries and allows farmers to receive more of the profits by dealing with the corporations directly, though logistical challenges exist. There is also potential for help from the non-profit sector, as in the case of an NGO which recently supported acai farmers by creating a local port to help them gain more control over the distribution process (Louis Dreyfus Foundation, n.d.). Consumers too can play a role by educating themselves about the industry and making informed choices. Overall, to stop the exploitation involved in obtaining acai and many other products, consumers, corporations, and governments will need to stop turning a blind eye to where our food comes from.
References/Resources:
References:
Coon, K., Webster, J. & Xu, J. (2023). Canadian supply chain transparency legislation: new risk for violations of human and labour rights – Global Supply Chain Compliance. Global Supply Chain Compliance. https://supplychaincompliance.bakermckenzie.com/2023/05/03/canadian-supply-chain-transparency-legislation-new-risk-for-violations-of-human-and-labour-rights/
Insider Business. (2022, July 3). Why People Risk Their Lives To Harvest Açaí | True Cost | Business Insider [Video]. YouTube. https://www.youtube.com/watch?v=3Sqm_v49zno
Louis Dreyfus Foundation. (n.d.). Improving the açaí supply chain for better livelihoods. https://www.louisdreyfusfoundation.org/projects/micro-farming/projects/Improving-the-a%C3%A7a%C3%AD-supply-chain-for-better-livelihoods
Macatonia, S. (2013, March 13). Going beyond fair trade: the benefits and challenges of direct trade. The Guardian. https://www.theguardian.com/sustainable-business/direct-trading-coffee-farmers
McCoy, T. (2021). Small children are climbing 60-foot trees to harvest your açaí. Washington Post. https://www.washingtonpost.com/world/2021/11/28/brazil-acai-child-labor/