The ALDI SOUTH Group is committed to fostering fair working conditions and environmentally friendly production in the cultivation and processing of nuts. Together with our suppliers, multi-stakeholder initiatives, certification bodies and industry experts, we promote sustainable requirements for nut products.
One nut is not like another
There are around eleven types of nuts sold in our shops. Their origins and production systems vary widely. Brazil nuts, for example, are a "wild" product found in tropical forests and harvested by hand. Many nuts come from smallholder farms, such as hazelnuts from Turkey or cashews from West Africa. Almonds often originate from industrial plantations in California.
Each nut and its value chain is unique and comes with its own social and environmental challenges. The ALDI SOUTH Group has identified nut supply chains as a high-priority focus area, with Brazil nuts, cashews and hazelnuts being of particular importance.
How can we increase sustainability in our supply chains?
Nut supply chains are highly complex, with distinct production processes for each type of nut. Typically, raw cashew nuts are grown and harvested in West and East Africa. They are then transported to Vietnam or India for cracking and shelling before being exported to manufacturers worldwide for final processing. This makes it challenging to achieve traceability and transparency along the supply chain and to improve our stakeholder engagement and capacity building.
We are making significant efforts to improve our sourcing practices. By sourcing directly from the country of origin, we support local processors and help improve the livelihoods of farmers, factory workers, and their families. In this way, value is reinvested into the community. Shortening the supply chain also reduces complexity and transport emissions while enhancing transparency and working conditions in growing regions.
The ALDI SOUTH Group has partnered with suppliers in West Africa to provide sustainably sourced cashews to its customers. For this project, all cashews are grown and processed locally. They are shipped directly from West Africa to ALDI SOUTH Group markets, where they are then packaged and sold. This significantly shortens the supply chain while maintaining excellent quality and taste.
As part of this project, we embarked on a cashew journey to find out exactly where our cashews come from and how we can best support the workers and farmers in our supply chain.
The ALDI SOUTH Group has partnered with suppliers in West Africa to provide sustainably sourced cashews to its customers. For this project, all cashews are grown and processed locally. They are shipped directly from West Africa to ALDI SOUTH Group markets, where they are then packaged and sold. This significantly shortens the supply chain while maintaining excellent quality and taste.
As part of this project, we embarked on a cashew journey to find out exactly where our cashews come from and how we can best support the workers and farmers in our supply chain.
More transparency on products and human rights
We need to understand where our products come from to ensure compliance with our sustainability requirements. We work closely with our business partners and other industry stakeholders to increase the transparency of our supply chains. In 2022, we successfully completed a nut traceability review to learn more about the origins of our products and the techniques used to grow and process them. We were able to obtain data on almost 85% of our buying volume, providing important insights into the individual supply chain of each nut variety.
We have also conducted Human Rights Impact Assessments (HRIAs) to increase transparency in our supply chain. These studies offer an in-depth analysis of human rights challenges and identify potential and actual impacts of our business activities and relationships.
Human Right Impact Assessments: Brazil Nuts from Bolivia
Brazil nuts are a "wild" product, found in tropical forests. They are one of Bolivia's most valuable agricultural exports. Our Human Rights Impact Assessment (HRIA) considered the different perspectives of people affected by ALDI's Brazil nut supply chain activities.
The results of the HRIA highlighted a number of challenges, including price pressure, a lack of transparency in harvesting and factory level processing, and the length of the supply chain. Key areas where ALDI SOUTH Group can make a difference include supplier selection, purchasing practices and pricing.
Teaming up for change
We believe that one of the best ways to protect people and the planet is through joint initiatives and partnerships. Since 2017, the ALDI SOUTH Group has been part of the Rainforest Alliance Programme. Rainforest Alliance tackles environmental and human rights issues, such as child labour and poor conditions for migrant workers in the predominantly Turkish hazelnut supply chains. More than 7,600 hazelnut farmers in Turkey now apply the Rainforest Alliance standards for sustainable farming.
The ALDI SOUTH Group was the first discount retailer to join the Sustainable Nut Initiative (SNI) in 2020. The pre-competitive collaboration platform brings together key players in global nut supply chains - from processors to roasters to retailers. By joining forces, we are driving progress towards better agricultural practices, advanced social standards, and more sustainable products.
Find out more about our nuts policies, initiatives, and projects. The Nuts Factsheet provides information about the ALDI SOUTH Group for benchmarking enquiries.
