By impacting workers’ health and wellbeing, working conditions in the farming and processing of animal protein products can present operational and compliance risks for organisations in the sector, which this article explores.
Why poor working conditions are a risk to animal protein producers’ operations?
Food production is highly labour-intensive, with roughly 1.3 billion people employed in agrifood systems globally.1 However, labour rights issues are highly prevalent in agrifood value chains, especially those focused on animal agriculture. Hazardous working conditions, complex supply chains and overreliance on migrant labour expose the sector to elevated occupational health and safety risks, human rights abuses and labour shortages.
Harsh conditions increase worker absences due to injuries and this, in turn, drives further labour shortages. As with many businesses, speed and efficiency are essential for meat-processing companies. Efforts to meet these objectives typically translate into finding ways to make production lines operate ever faster – a solution that can impact not just food safety but worker safety.2
Indeed, high line speeds, repetitive work and exposure to chemical and biological agents means that workers in the industry face a heightened risk of injury, illness and even death.3 Not addressing these issues can result in serious operational and reputational risks for companies involved in animal agriculture. Breaches in safety standards can result in fines, compensation payments and lost production time. In the US, where the maximum line speed at poultry plants is 140 birds per minute, a stoppage of just two minutes could cause US$1,000 in lost revenue.
FAIRR’s research has found that meatpacking workers were disproportionately impacted by COVID-19, yet the pandemic merely highlighted the suboptimal conditions that already existed.4 The industry’s labour management practices and risk reporting are generally insufficient to sustain a reliable, healthy and productive workforce and are now exacerbating labour shortages for meatpackers in today’s highly competitive job market.
Labour shortages in some countries have also been driven by changes at a national level, including the effects of the UK leaving the European Union and immigration restrictions in the US, as many companies rely on an immigrant workforce.
To address this issue, nearly 100 investors with over US$10 trillion AUM supported the Workforce Disclosure Initiative, calling for transparency from food companies and other stakeholders on how they manage workers.
Health and safety risks in the agriculture industry
Workers in animal agriculture are exposed to a variety of health and safety risks due to the nature of their work.
Farm workers undertake physically demanding work where interactions with livestock, machinery and vehicles can lead to serious injuries if stringent health and safety procedures and safeguards are lacking.5 They may also face risks from poor management of ammonia, dust and dander on farms, which cause respiratory difficulties.
Workers in meat processing facilities face risks from operating dangerous machinery at high speeds, physically demanding labour, working with large animals and exposure to environmental, biological and chemical hazards.
Working conditions regulations
Following the COVID-19 pandemic, meatpacking companies including Tyson Foods, JBS and BRF faced litigation from shareholders and workers or their relatives for failing to implement protocols to protect workers.6,7
Regulatory developments focused on labour risk include:
The German government implemented protective measures for slaughterhouse workers and banned subcontracted employment for meat companies with 50 or more employees following revelations of problematic practices during COVID-19. 8 9 Before the 2020 restriction on subcontracting, directly employed workers had a maximum 48-hour week, while subcontractors worked up to 68 hours a week on wages that were 40% - 50% lower than their directly employed counterparts.10
In 2021, the Hong Kong Stock Exchange introduced sustainability reporting rules and guidance, which include “comply or explain” requirements on an extensive set of social parameters covering employment and labour practices, operating practices, and community investment.11
In 2024, the EU approved regulation banning all products (imports, exports and domestically produced goods) made using forced labour across all industries.12 As of 2025, the EU’s Corporate Sustainability Reporting Directive requires that companies generating over €450 million (US$528.7 million) in the EU report annually on their labour practices and human rights policies.
The EU’s Corporate Sustainability Due Diligence Directive, passed in 2024, requires companies with over €450 million (US$528.7 million) turnover to carry out due diligence to identify, prevent, mitigate and remediate adverse human rights and environmental impacts across their entire value chain and report progress annually from 2027.
The Uyghur Forced Labor Prevention Act came into force in the US in 2021 and forbids the import of goods manufactured in the Xinjiang region of China unless an investigation has confirmed that they have not been produced with forced labour.
Summary
Risks related to poor working conditions in intensive animal agriculture have grown in prominence in recent years, with consumer expectations and regulation increasing accordingly. Given the strong links between worker safety, productivity, and reputational and compliance risk, this is an area that merits continued investor scrutiny.
Reference
[5] FAO. (2024). Employment indicators 2000–2022 (October 2024 update).
[6] Health and Safety Executive. (n.d.). Health and safety in agriculture.
[7] HKEX. (2023). Appendix 20: Environmental, social and governance reporting guide.
[8] OSHA. (n.d.). Meatpacking hazards and solutions. Occupational Safety and Health Administration.
[10] Stempel, J. (2021). Lawsuit says Tyson Foods misled shareholders about COVID-19 protocols. Reuters.
