Horsemeat has been discovered in beefburgers sold by the supermarkets Tesco and Iceland, after an investigation by the Republic of Ireland’s food safety authority (FSAI). The investigation found traces of “horse DNA” in meat originating from two processing plants in Ireland – Liffey Meats and Silvercrest Foods – and the Dalepak Hambleton plant in Yorkshire. The findings are not said to present a food safety risk but have raised serious concerns over the sourcing policies of those supermarkets affected. (Independent, BBC)
Nike supplier ‘resisting pay rises’ in Indonesia
Nike is under fresh scrutiny following claims that its supplier factories in Indonesia have pressured workers into renouncing their right to a minimum wage. After protests by garment workers last year, authorities in Jakarta raised the minimum wage to 2.2m rupiah (£142.25) a month. But an investigation by trade unions and labour-rights activists has established that at least six Nike suppliers are resisting implementing the pay rise. Indonesia is the third biggest producer of Nike goods, after Vietnam and China, with 40 factories employing 171,000 people. (Independent, Huffington Post)
Walmart to source more US-made products
Walmart has pledged to source an additional $50bn of products from the US over the next ten years to boost domestic manufacturers. Bill Simon, chief executive of Walmart US, said rising labour costs in Asia and the volatility of oil and transportation costs were making the US a more viable production location for some products. The US sourcing initiative came after Walmart’s supply chain was thrown into the spotlight last November by a fatal fire at a subcontractor’s factory in Bangladesh. However after years of shrinking manufacturing in the US, some are concerned over whether its workforce has the skills needed to enable a re-expansion. (Financial Times*)
Environment
New initiative to protect tea industry from climate threats
Some of the biggest names in the global tea industry are launching a major new initiative to assess the challenges faced by the sector as a result of rising temperatures, changing land use, and increased demand for ethical products. Dubbed ‘Tea 2030’, the initiative will bring together Tata Global Beverages, Unilever, Yorkshire Tea, Finlays, the Ethical Tea Partnership, the Sustainable Trade Initiative, Rainforest Alliance, and Fairtrade International, as well as the International Tea Committee, to assess the risks faced by the sector and explore steps that can be taken to improve its long-term prospects. (Business Green)
Finance & Banking
Goldman drops plan to avoid tax on staff bonuses
Goldman Sachs has stopped a plan to save its UK employees millions of pounds in tax by delaying bonus payments. The bank had proposed a plan to shift back a series of bonus payments to its UK staff until after 6 April, when the top rate of income tax falls from 50p to 45p. This would have cut the size of its employees' tax bill to the Exchequer. However, following criticism from both the Treasury and the Governor of the Bank of England, Goldman has decided to go ahead with the normal schedule for bonus payments rather than delaying until after the tax drop. (Independent, Guardian, Telegraph)
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