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Opinion: Coca-Cola fights for farmers


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By Joel Brinkley

Many Southeast Asians and others around the world owe their thanks to the Coca-Cola Company.

No, I’m not expressing gratitude for the sugary drinks that can help make people fat. But to make those drinks, Coke is one of the world’s largest sugar consumers. The company buys sugar from distributors all over the world.

Joel Brinkley

Joel Brinkley

Well, it happens that some of the largest growers and distributors are in Thailand and Cambodia. And as a recent lawsuit made clear, much of the Cambodian sugar is grown on large plantations that used to be farmland for hundreds of poor family farmers.

Across Asia, many countries are guilty of baldly seizing their citizens’ land without significant compensation and then selling it to corporations or developers, leaving the owners homeless and often destitute. Arguably, however, Cambodia has the biggest problem. Over time, the Cambodia Daily newspaper reported recently, the government has seized almost 5 million acres — about 10 percent of the nation’s entire land mass.

In Cambodia, human-rights advocates and others are now calling the crop produced on this illegally seized land “blood sugar.” (Sometimes landowners who refuse to leave their property are jailed — or shot and killed.)

The Cambodian government contends that the land seizures are actually lifting citizens out of poverty because the companies that buy the land create jobs. But in truth, it’s a net loss because the landowners are thrown off their property and most often find themselves unemployed.

It happens that the sugar grown on the seized land in question was processed first in Cambodia and then in Thailand until finally it wound up with Tate & Lyle Sugars, Britain’s largest sugar marketer.

Earlier this year, Mark Moorstein, a Northern Virginia land-use lawyer, took on a “blood sugar” case as pro-bono, charitable work. He and a partner firm in London sued Tate & Lyle. The suit claimed that “pursuant to Cambodian law, the claimants,” 200 villagers, “are the owners of the land” and “are entitled to the sugar cane.” Tate & Lyle, it added, “knew that the villagers were the owners of the raw sugar or ought to have known.”

As soon as the lawyers filed their suit, Tate & Lyle seemed to panic. Very quickly, it sold its entire sugar-production unit to American Sugar Refining, better known in the United States for its name-brand product: Domino Sugar. That company became the defendant.

Enter the Coca Cola Company. As the lawsuit rolled forward, the company apparently realized that its soft drinks were being made with “blood sugar.” Or perhaps the company already knew that — but grew contrite. After all, a Thai sugar-producing giant, Mitr Phol, gets much of its sugar from Cambodia and is one of Coke’s top three suppliers.

“The Coca-Cola Company commits to zero tolerance for land-grabbing,” the company announced in a statement last month. Coke committed to hire third-party investigators to look at its sugar suppliers to be sure none of them is buying “blood sugar.”

Cambodian human-rights groups lauded the move. “Coke’s statement is a watershed moment for the communities” victimized by land grabbers, said Eang Vuthy, executive director of Equitable Cambodia. But he and others said they hoped that forceful action will follow Coke’s laudable statement.

Land-grabbing is endemic to Asia, including China, Myanmar, Laos and Vietnam. All those nations, including Cambodia, are thoroughly corrupt with court systems that often do nothing but mirror the government’s view.

In fact, a Cambodian human-rights group filed suit against a sugar-farm seizure in 2007, and to date the court still has not issued a judgment. Now, as one major Cambodian human-rights organization puts it: “In Phnom Penh and the 12 provinces” around it “land-grabbing has affected an estimated 400,000 Cambodians since 2003, helping to create a sizable underclass of landless villagers with no means for self-sustenance.”

That’s why Coke’s decision — if in fact the company follows through — is quite important.

Following Coke’s lead, PepsiCo investors filed a shareholders resolution urging that company to account for alleged land-rights violations in Cambodia, where much of its sugar comes from as well.

“As shareholders we want to know what PepsiCo is doing to ensure that its suppliers are behaving responsibly and preventing land conflicts from undermining its reputation and operations,” a shareholders group said. These people promised to bring up the resolution at Pepsi’s annual meeting early next year.

All of this holds the potential to benefit tens of thousands of poor Southeast Asian people whose governments are mercilessly victimizing them. The corporate “blood sugar” customers hold the greatest power to put a stop to these vile acts.

Joel Brinkley, a professor of journalism at Stanford University, is a Pulitzer Prize-winning former foreign correspondent for the New York Times.

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Comments

Comments (3)
  1. rock4tahoe says - Posted: December 24, 2013

    Well, I will say this is a start for Coke and Pepsi. Now, can you please bring back recyled bottles instead of plastic bottles or aluminum can?

  2. observer says - Posted: December 26, 2013

    With the indisputable science behind the health detriments from over consumption of sugar, consumers have the pinnacle of power to spotlight this situation by just not drinking Coke/Pepsi etc. Imagine what a weeks stand down would do. (Remember the Exxon boycott after the oil spill in Alaska?)Scared the hell out of Exxon and significantly swayed their approach to culpability and cleanup.

    A significant part of the world’s population of sugar laced drinks has moved to bottled water from carbonated beverages. So the same companies bought up the bottled water business in a major way, and make even more money pushing healthy water. Still in the ubiquitous plastic recyclable (but largely un-recycled) bottles. They have a perfect business model with consumer-sheep corralled either way.

    Same answer….go for a week without buying bottled water and see what happens.

    Better yet, purchase a water filter which produces the same or better quality drinking water as from Coke/Pepsi and their ilk for a lot less cost/drink and quit bottled water completely.

    Come on people, quit sitting around watching the tube and drinking coke, and get behind something that might make you feel better about yourselves!

  3. Fact check says - Posted: January 6, 2014

    Land grabbing is deplorable and shareholder demands of ethical behaviour are absolutely necessary. Recent Coca Cola and Pepsi moves are laudable.

    Whilst the objectives of the opinion’s themes are inherently good, it is unfortunate that inaccurate information and incorrect assumptions on the veracity of sources and their “facts” undermine the credibility and potential impact of the message.

    For example:

    Cambodia actually has few plantations of sugarcane and produces very little sugar, presently some 30-40 thousand tons, which in the world of sugar is miniscule and cannot even meet the country’s own local consumption demand. (I.E. Thailand produced some 11 million tons of sugar in 2013)

    40 thousand tons is also a small amount compared to Coke’s purchasing needs.

    Moreover, no Cambodian sugar would be able to meet Coke quality specifications without further processing and cost.

    No Cambodian sugar has ever been processed in Thailand this is not likely to happen based on simple transport economics.

    Thai company Mitr Phol has never produced any kind of sugar in Cambodia and reportedly has no plans to do so.

    The sale of T&L to ASR was based on many factors, but had nothing to do with Cambodia as the quantities of sugar involved from Cambodia have been tiny and immaterial to T&L procurement operations and the deal. (In any case purchases from Cambodia have also reportedly ceased.)

    In sum:

    The unfortunate reality is that Cambodia is truly an inequitable society and land issues are a serious problem intertwined with corruption and cronyism.

    It should be recognized that the vast majority of nontransparent land grabbing is off the radar screen of the local NGOs for some reason. These deplorable cases are associated with Chinese, Vietnamese and Cambodian crony companies that are either deemed too hard to research, “untouchable” due to government connections, or just plain not “sexy” enough to grab western headlines and gain the recognition needed elicit money out of donors to NGOs.

    I suggest that with ASR purchases already ceased and Coke/Pepsi confirmed to be working closely with reputable big suppliers, the NGOs and western lawyers should find a way to target the real abusers and look for real change in Cambodia. Were not Vietnam and/or China recently named to the highest council and inner core of the United Nations Commission on Human Rights?

    Even Professors need to fact check.