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Del Monte Kenya

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Del Monte Kenya Limited
Company typeSubsidiary
IndustryFood
Founded1965; 59 years ago (1965)[1]
Headquarters
Thika
,
Kenya[2]
Key people
Stergios Gkaliamoutsas, managing director[2]
ProductsPineapple cultivation, processing and canning; production of juice concentrates, mill juice sugar and cattle feed
RevenueKSh.4.5 billion/= (2011 estimate)[citation needed]
Number of employees
Approximately 6,500 (2024 estimate)
ParentFresh Del Monte Produce
Websitehttp://www.delmonteeurope.com/

Del Monte Kenya Limited is a Kenyan food processing company that operates in the cultivation, production, and canning of pineapple products.[3][4] Del Monte Kenya Limited, a wholly owned subsidiary of Fresh Del Monte Produce Inc., is a leading producer, marketer, and distributor of high-quality fresh fruit and prepared food in Europe, Africa, and the Middle East.

The company produces canned solid pineapple, juice concentrates, mill juice sugar and cattle feed. Kenya's largest single manufactured export is canned pineapple, and the country ranks among the top five pineapple exporters in the world, both of which feats are direct results of the company's existence and operations. Del Monte Kenya is the single largest exporter of Kenyan products, moving 5,000 containers per annum through the Mombasa port.[5]  

History

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The company was previously known as Kenya Canners, which formed in 1949.[4] Del Monte Kenya was later renamed Del Monte Royal after control was acquired Tancot Group acquired the company in 1958 and was later sold to the US company Del Monte Corporation in 1968.[1] In 2002, Cirio Alimentare acquired a 98% stake in the company, and following this the company changed its name to Cirio Del Monte Kenya Limited.[6] The company was certified under the International Organization for Standardization SA8000 in 2002, and was recertified in March 2006.[7] Del Monte Kenya also acquired the International Organization for Standardization 9002 certificate.[8]

Overview

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Cirio Del Monte Kenya owns a 10,000-acre (40 km2) pineapple plantation[4] and employs approximately 6,500 workers (2024 estimate), and generates approximately 28,000 additional jobs through other companies associated with Del Monte Kenya’s activities.[3] Del Monte Kenya is supporting the livelihoods of over 35,000 Kenyan families within Murang’a and Kiambu Counties and over one hundred thousand livelihoods indirectly who benefit from the salary payments amounting to KSh3.1billion annually. Approximately 60% of the workforce is female (2004 estimate).[1] The company employs three types of employees: permanent staff, seasonal workers and casual laborers.[9] Many of Del Monte Kenya’s employees are long-serving workers in a country where there are high staff turnovers. Del Monte Kenya employees have been vocal about growing within the company.

Del Monte Kenya has helped to enhance Kenya’s export profile. As the largest single exporter of Kenyan products, Del Monte Kenya is a key player in boosting Kenya’s export growth. The company exports 3,800 containers of pineapple products and other tropical fruits and beverages through the port of Mombasa each year. Del Monte Kenya supports the growth of the local supply chain with approximately KSh 8 billion paid to local suppliers of services, raw materials, and equipment, supporting businesses in the community. An investment of over KES 100 million also goes into public road maintenance every year.

The organization is among the top taxpayers with over KSh1billion paid in taxes. In 2023, Del Monte Kenya paid KES 1.3 billion in taxes which included corporate tax, withheld VAT, PAYE, Excise duty, withholding tax, NSSF, NHIF, and pension.

Production

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The annual turnover in 2022 was KShs 10.5 billion, with approx. 82% of it, or KShs 8.5 billion, earned in foreign exchange from exports to international markets. Due to the company's existence and operations, the largest single manufactured export from Kenya is canned pineapple.[3] Additionally, Kenya ranks among the top five pineapple exporters in the world due to the presence and operations of Cirio Del Monte Kenya.[3] Their products are primarily exported to the European market.[4] 34% of the company's production is juice concentrate, 22% is solid pineapple, 21% is mill juice sugar and 22% is cattle feed.[4]

The pineapple producer, marketer, and distributor recently launched a new biofertilizer facility in Kenya that turns the company’s pineapple residues into biofertilizers. Del Monte Kenya has said that it sees a tremendous opportunity with its crop residues and is actively finding new ways to maximize their use. Del Monte Kenya will be the company’s launchpad for this initiative, which upon successful implementation, will be made available for its use and eventual sale to other growers in East Africa.[10]

Certifications

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Del Monte Kenya has numerous certifications, including Global GAP, Business Social Compliance Initiative (BSCI), Sedex Member Ethical Trade Audit (SMETA), and adheres to SCS Global Services Sustainably Grown Standard, a certification applied for environmental stewardship and social responsibility. [11]

Community Efforts

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Del Monte Kenya invests in infrastructure, roads, medical clinics, and schools in the community around its farms in the Thika region. The company also offers employees and their families housing, medical care, and education. More than 1,600 students attend 13 schools Del Monte Kenya-run schools, in conjunction with the Kenyan government.

The company also runs free medical camps and has six medical clinics dedicated to employees. They offer preventative health care programs and women’s health programs, among others.

According to the company’s 2022 Sustainability Report, the company has participated in the following initiatives:

  • Expanded our women's healthcare program in Kenya. For Menstrual Hygiene Day, the company hosted a workshop to overcome taboos, provide advice, and administer feminine hygiene products.
  • As part of disaster relief efforts, donated more than 200 cartons of canned pineapples to the Kenya Red Cross Society, part of the KAM Humanitarian Initiative, in response to massive droughts and famine in the regions we work in Kenya.

The company has also committed to reaching 10,000 women employees and community members with reproductive health information and services through company-led programs by 2024.

Controversy

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In May 2023, British newspaper The Guardian reported that multiple killings occurred at Del Monte's pineapple farm in Kenya, where security guards allegedly murdered trespassers and showed general violence against locals.  

In response to the accusations in The Guardian, the company has maintained the allegations as false, stating they don’t tolerate misconduct on their property. Following the accusations, Del Monte Kenya conducted a Human Rights Impact Assessment.

Following the Human Rights Impact Assessment, the company hired G4S to reinforce security solutions within its operations as pineapple theft in the area became more widespread.[12]

The company also stated the following regarding the allegations:

“Many of the allegations [reported by the media] have already been proven to be untrue but, nonetheless, the headlines continue to perpetuate the same misinformation. Now that a constitutional action has been filed against Del Monte and others, including the Attorney General of Kenya and the Director of Public Prosecutions of Kenya, we look forward to addressing the allegations that have been leveled against us and the Kenyan government, through the Kenyan courts. We welcome the opportunity for all parties to present evidence in a public forum and trust those proceedings will reveal the truth and expose these attempts to tarnish our good name.”

The company has stated that it believes that interested parties with close ties to the media are leading this misinformation campaign to get Del Monte Kenya to cede its land.

The company has been at the center of an ongoing tussle with the local community in a land ownership row with the local community whose members claim the company's land as their rightful ancestral home.[13][14][15][16][17] In all legal proceedings held to date, the Kenyan High Court has ruled in favor of Del Monte Kenya, declaring that that the lands were obtained legally and that Del Monte Kenya is the rightful legal owner of the lands.

The company have been involved in previous disputes that generated negative publicity and had received the attention of human rights groups.[1]  

A report in 1999 by Société Générale de Surveillance concluded that Del Monte did not allow workers freedom to join trade unions, and union workers were not allowed to communicate with employees.[13] The report also found that the company routinely threatened shop stewards with termination.[1] Additional findings were that Del Monte did not have a safety plan in the event of an emergency, did not make first aid kits available to employees, did not provide ear protection to workers in high decibel environments and did not provide gas masks to employees using chemical sprays.[13]

In 1999, Centro Nuovo Modello di Sviluppo (CNMS), an Italian human rights group, began a campaign for consumers in Italy to boycott Del Monte pineapples after research conducted by the group found conditions at the company's factory to be inferior.[13] This campaign was backed by the Kenya Human Rights Commission, which stated that wages were not enough to meet basic needs, that living quarters and sanitation was "disgraceful," toxic pesticides deemed by the World Health Organization as "Extremely hazardous" and "Highly hazardous" were being used, and that the company was intimidating internal trade union leaders, among other concerns.[13] Del Monte Royal asserted that no evidence had been existent to corroborate CNMS' claims of any illness, disease of fatalities resulting from unsafe conditions.[14]

On 5 October 2000, the company was asked by the Kenya Human Rights Commission (KHRC) to cease intimidation of trade unionists with Del Monte Kenya.[15] KHRC also requested that Del Monte Kenya address matters regarding worker protection from chemicals, housing concerns and environmental pollution.[15]

In July 2001, the company signed an agreement to support the campaign for worker rights, and shop stewards stated that positive changes were occurring. Additionally, in December 2001, the company started a tree-planting campaign in its neighborhood as part of a pledge to promote sustainable land use and environmental protection.[11]

See also

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References

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  1. ^ a b c d Bomann-Larsen; Wiggen (2004), p. 161
  2. ^ a b "Del Monte (Kenya) Ltd". Manta.com. Retrieved 12 March 2013.
  3. ^ a b c d Fox, M. Louise; Liebenthal Robert (2006) Attacking Africa's Poverty: Experience from the Ground. World Bank Publications. p. 120. ISBN 0821363239
  4. ^ a b c d e Wangwe, Samuel M. (editor) (1995). Exporting Africa: technology, trade and industrialization in Sub-Saharan Africa. United Nations University/Routledge. ISBN 0415126916
  5. ^ "Del Monte Kenya Nurturing Employees". CapitalFM. 25 January 2023.
  6. ^ Openda, Francis (20 February 2002). "Kenya: Cirio Buys Del Monte". All Africa. Retrieved 12 March 2013. (subscription required)
  7. ^ "Complaint #009: Certification Complaint Del Monte Kenya Ltd. – Management Systems". Social Accountability Accreditation Services. Archived from the original on 5 January 2009. Retrieved 13 March 2013.
  8. ^ Bomann-Larsen; Wiggen (2004), p. 174
  9. ^ Bomann-Larsen; Wiggen (2004), p. 166-167
  10. ^ "Fresh Del Monte Announces Partnership to Produce Biofertilizers from Fruit Residues, Launching Innovative Plant in Kenya". 14 May 2024.
  11. ^ "Pineapple Farms and Canning Operations in Kenya Achieve SCS Sustainably Grown Certification". www.delmonteeurope.uk. Retrieved 17 June 2024.
  12. ^ "Del Monte Kenya Enters into Partnership with Global Security Leader G4S". Yahoo Finance. 4 March 2024. Retrieved 17 June 2024.
  13. ^ a b c d Bomann-Larsen; Wiggen (2004), p. 162
  14. ^ Bomann-Larsen; Wiggen (2004), p. 164
  15. ^ a b "Kenya: Human rights group challenges Del Monte over workers' health, pay". East African Standard. 6 October 2000. Retrieved 12 March 2013. (subscription required)

Bibliography

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Further reading

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