Hannaford Supermarkets is conducting an extensive review of its dairy supply chain in response to longstanding concerns regarding potential worker and human rights violations. Activists have criticized the company’s milk sourcing from farms reportedly exhibiting substandard working conditions. This review is part of a comprehensive multi-year strategy introduced by the grocer’s parent company, Ahold Delhaize, in 2020. The process commenced in early April and is being overseen by Enact, a third-party auditor.
Coinciding with this review, Migrant Justice, an advocacy group for farm workers’ rights, filed a human rights complaint against Ahold Delhaize on April 7. The complaint was presented at the company’s annual shareholder meeting in the Netherlands and submitted to the Organisation for Economic Co-operation and Development (OECD), an intergovernmental body in Paris that analyzes and provides standards for global economic affairs. Although the OECD lacks enforcement power, it can initiate investigations and mediate between parties.
While Migrant Justice acknowledges the positive steps taken by Hannaford, the group emphasizes the need for substantial changes in the company’s practices to truly benefit farm workers. Hannaford acknowledges the role of Migrant Justice in highlighting these issues and views the current assessment as an opportunity to scrutinize its supply chain and implement improvements where necessary. The company stresses its commitment to human rights while acknowledging its limited direct interactions with individual farms, as its milk is processed by HP Hood and sourced from various farm cooperatives.
Hannaford has over 180 stores and employs more than 30,000 associates. The company asserts the importance of the human rights impact assessment to address uncertainties within its supply chain. The outcome of this assessment will inform an action plan to address any identified issues.
Migrant Justice’s complaint to the OECD accuses farms within Hannaford’s supply chain of violating workers’ rights, citing concerns such as poor living conditions, forced labor, discrimination, and unsafe environments. They urge Hannaford and dairy consumers to join their Milk with Dignity program, advocating a code of conduct for fair labor practices.
The impact assessment by Hannaford and the OECD’s examination of Migrant Justice’s complaint are expected to take several months. During this period, Hannaford continues to engage with its suppliers to ensure adherence to Ahold Delhaize’s Standards of Engagement, which mandate fair treatment, respect, and dignity for workers, alongside regulated working hours and appropriate compensation.
The latest standards, effective January 2024, authorize Ahold Delhaize to terminate relationships with suppliers until violations are resolved. However, suppliers are primarily responsible for addressing and informing Ahold Delhaize of any issues. While Ahold Delhaize’s policy intends to uphold fair practices, Migrant Justice argues that reliance on individual farm owners for enforcement may be insufficient.