“'Ghost Farms and Coffee Laundering': labor violations in Starbucks’ and Nestlé’s Chinese coffee supply chain" 3 December 2024

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The following labor violations were documented by CLW on Starbucks C.A.F.E. certified and Nestlé 4C certified estates, as well as uncertified smallholder farms hidden in these brands’ supply chains:

Child Labor: [...] Children help with tasks like picking coffee, especially during school breaks, despite exposure to agrochemicals in unsafe living conditions. Children working with exposure to agrochemicals may be considered by the ILO to be in “hazardous child labor.”

Low Wages: Coffee pickers are paid based on weight, earning RMB 80-200/day (USD $11.25 - $28.12 per day), barely meeting minimum wage. Excessive hours inflate earnings, and some rely on family members, including minors, to help meet demands.

Excessive Hours: Workers typically work 7 days a week during peak harvest [...] violating legal limits on working hours and overtime.

No Paid Leave: There is no compensation for statutory holidays, illness, or personal leave, forcing workers to choose between income or rest.

Lack of Medical Insurance: Farmers have no employer-provided medical or health insurance, despite exposure to harsh conditions, agrochemicals, and occupational health risks.

No Protective Gear: Workers are not provided with safety equipment, leading many to sacrifice safety for productivity, causing injuries like hand wounds and bug bites, and exposure to agrochemicals.

[...] The current coffee procurement model in Yunnan allows Starbucks and Nestlé maximize profits while outsourcing exploitative labor conditions to uncertified farms, evading accountability under the guise of ethical sourcing. [...] This extractive business model does not only fail to uplift the community but actively deepens the social inequalities of Pu’er, leaving its most vulnerable workers entrapped in cycles of exploitation.

[...] China Labor Watch strongly urges Nestlé, Starbucks, Conservation International, and 4C to conduct a comprehensive review and reassessment of their ethical guidelines [...] This includes mandating legal protections for all supply chain workers through direct, enforceable contracts and reforming the piece-rate system to guarantee a stable, livable income for every worker.