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Is Costco shrimp ethically sourced? A complete guide

4 min read

Following reports of forced labor in the Southeast Asian shrimp industry, Costco committed to sourcing shrimp exclusively from farms with Aquaculture Stewardship Council (ASC) standards. Is Costco shrimp ethically sourced today, and what progress has the company made toward its sustainability goals?

Quick Summary

Costco prioritizes ASC-certified shrimp for its Kirkland brand to address environmental and social concerns. While facing past controversies over labor issues, the company has implemented measures and collaborated with groups like the Seafood Task Force to improve sourcing transparency.

Key Points

  • ASC Commitment: Costco aims to source all farmed shrimp, especially its Kirkland Signature brand, from Aquaculture Stewardship Council (ASC) certified farms.

  • Past Labor Issues: The shrimp industry has faced significant controversies over forced labor, and lawsuits naming Costco suppliers in the past have brought scrutiny.

  • Improved Traceability: Following past controversies, Costco implemented a Supplier Code of Conduct and improved traceability for Kirkland Signature products to track shrimp from farm to bag.

  • Look for the Label: Not all shrimp sold at Costco is ASC-certified, particularly third-party brands; consumers should look for the ASC logo to verify ethical sourcing.

  • Active Improvement: Costco actively participates in initiatives like the Seafood Task Force to address industry-wide ethical issues and supports farms working toward certification.

  • Ongoing Challenges: While Costco has made positive strides, ethical sourcing challenges persist in the complex global shrimp supply chain, requiring ongoing vigilance.

In This Article

Understanding the Ethical and Sustainable Landscape of Shrimp

The shrimp industry, particularly in aquaculture, has long been under scrutiny for both its environmental impact and serious human rights issues. For concerned consumers, the question of "Is Costco shrimp ethically sourced?" requires examining the company's stated policies, its progress, and the broader context of the shrimp supply chain. While Costco has made significant commitments toward responsible sourcing, a complete answer involves acknowledging past controversies and understanding the role of third-party certifications.

Costco's Commitment to Sustainable and Ethical Seafood

For several years, Costco has been working to improve the ethical and environmental standards of its seafood supply chain. A cornerstone of this effort is the company's commitment to the Aquaculture Stewardship Council (ASC). The ASC is a non-profit organization that manages a certification program for responsibly farmed seafood. The certification is designed to minimize environmental impacts, prevent disease transmission to wild species, and ensure social responsibility by protecting the well-being of workers and local communities.

Costco has stated its goal is to source farmed shrimp only from ASC-certified farms. According to a SeaChoice report, Costco preferentially sources ASC-certified products for its Kirkland Signature line, while less information is available on third-party shrimp products. The company has also participated in improvement projects to help farms achieve ASC certification and has implemented full-chain traceability for its Kirkland products. This commitment reflects a response to both consumer demand and historical industry issues.

Historical Context: Controversies and Allegations

The broader shrimp industry's ethical record has been marred by serious human rights concerns, particularly in Southeast Asia. A 2013 report by the Environmental Justice Foundation (EJF) documented widespread human trafficking, forced labor, and severe abuses in Thailand's shrimp industry. The report alleged that migrant workers, including children, were subjected to trafficking, withheld wages, and forced detention in shrimp pre-processing facilities.

In 2015, major U.S. retailers, including Costco, were implicated in shrimp supply chains linked to slave labor conditions. A class-action lawsuit was filed against Costco, alleging it knowingly sold slave-labor shrimp. The lawsuit was ultimately dismissed on a technicality, with the judge stating that the plaintiffs failed to specifically trace the prawns they bought back to the companies using forced labor. This outcome, while not legally convicting Costco, highlighted the significant transparency and labor issues within the industry that needed addressing.

Costco's Response and Enhanced Traceability

In the wake of these revelations, Costco intensified its efforts to improve its supply chain oversight. The company reinforced its Supplier Code of Conduct, which strictly prohibits practices like forced labor, human trafficking, and unsafe working conditions. Suppliers are subject to independent, third-party audits to ensure compliance. For violations, Costco's policy is to work with suppliers toward remediation, with the threat of termination for critical or unresolved issues.

To address systemic supply chain problems, Costco joined the Seafood Task Force, an international group of processors, retailers, and suppliers dedicated to improving traceability and ethical standards. A key achievement is the implementation of a coding system that allows Costco to trace its Kirkland Signature products from "farm to bag," improving transparency and accountability.

ASC vs. BAP: Comparing Certification Standards

When evaluating ethical shrimp sourcing, it's important to understand the different third-party certification schemes available. The two most common for aquaculture are the Aquaculture Stewardship Council (ASC) and Best Aquaculture Practices (BAP). While both aim to improve standards, they have different histories and approaches.

Feature Aquaculture Stewardship Council (ASC) Best Aquaculture Practices (BAP)
Origin Founded by the World Wildlife Fund (WWF) and the Dutch Sustainable Trade Initiative. Founded by the Global Aquaculture Alliance, an industry-led group.
Stakeholder Involvement Uses a multi-stakeholder approach involving environmental and social NGOs, industry members, and academics. Driven primarily by industry members.
Scope Certification primarily focuses on the farm level, covering key environmental and social impacts. Certification covers the entire production chain, from feed mills and hatcheries to farms and processing plants.
Labor Standards Includes strict social requirements regarding child labor, forced labor, working hours, and fair wages. Also has social accountability standards, but some reports suggest violations can occur in certified facilities.
Auditing Process Audits are announced, which some critics suggest allows farms to temporarily fix issues. Uses both announced and unannounced audits.

What Does This Mean for Consumers?

For consumers, Costco's preferential sourcing of ASC-certified products is a positive step. However, it is crucial to recognize that the ASC certification primarily covers the farm level. While it includes social standards, some critics argue the announced audit process and exclusion of certain parts of the supply chain (like processing) can leave gaps. This makes vigilance essential. The best way to ensure your Costco shrimp is ethically and responsibly sourced is to actively look for the ASC logo on the package. If the product lacks this certification, the ethical standards are less guaranteed.

Conclusion: Navigating a Complex Supply Chain

So, is Costco shrimp ethically sourced? The answer is complex. The company has made concrete steps to improve its sourcing, primarily by prioritizing ASC-certified shrimp for its Kirkland Signature products and enhancing traceability. For these specific products, the standards are high, covering both environmental and social impacts. However, consumers must remain aware that not all shrimp sold at Costco is ASC-certified, especially third-party brands. The ASC certification, while robust, is not a perfect system, and challenges within the broader shrimp industry, including labor issues in processing facilities, continue to exist. By looking for the ASC label, consumers can support Costco's efforts and encourage greater ethical standards across the seafood industry.

For more information on the certification standards and the organizations involved, visit the Aquaculture Stewardship Council website at asc-aqua.org.

Frequently Asked Questions

The Aquaculture Stewardship Council (ASC) certification is a third-party standard that verifies farmed seafood has been produced responsibly. For shrimp, it ensures farms minimize environmental damage and uphold social standards, including fair labor practices.

No, while Costco's goal is to source all its farmed shrimp from ASC-certified suppliers, it is still working toward this commitment. Consumers should look for the ASC logo specifically on Kirkland Signature and other branded products.

To ensure your shrimp is ethically sourced, look for the ASC logo (a green box with a checkmark) on the packaging. For Kirkland Signature products, Costco has implemented full-chain traceability, but the logo is the most direct indicator for all brands.

Yes, a class-action lawsuit was filed against Costco in 2015, alleging it knowingly sold shrimp processed with forced labor from certain suppliers. The case was ultimately dismissed, but it drew attention to the issue and prompted Costco to strengthen its supply chain oversight.

The Seafood Task Force is an international group of seafood industry players and other stakeholders created to combat human rights abuses and illegal fishing. Costco is a founding member and has collaborated with the Task Force to improve transparency and traceability in its supply chain.

No, they differ in origin, stakeholder involvement, and scope. While both certify farmed seafood, ASC was founded by environmental NGOs and involves a broader range of stakeholders, while BAP is an industry-led program.

The ASC standard requires shrimp farms to meet strict social criteria, including prohibiting child and forced labor, ensuring fair working hours and wages, protecting worker health and safety, and fostering positive relations with local communities.

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Medical Disclaimer

This content is for informational purposes only and should not replace professional medical advice.