Commodities trader Cargill has been ordered by a Brazilian court to pay $120,185 as indemnity for buying cocoa from farms where child labor or forced work has been identified.
Minnetonka-based Cargill said on Tuesday it disagreed with the complaints and fine and would appeal the ruling to a higher court.
Cargill was also ordered to add to its contracts with Brazilian cocoa suppliers clauses to end the commercial relationship if child labor or other unlawful working conditions occur. The decision from the 39th Labor Court in the northeastern state of Bahia, seen by Reuters, was dated Sept. 18.
The lawsuit was brought against the commodities company by local labor prosecutors.
The court also requires Cargill to start a "due diligence" process to verify whether there is child labor in its supply chain and launch a campaign to combat the practice, according to the ruling.
In a statement, Cargill said it could not comment on details of the case because it is subject to legal confidentiality.
However, it said it "does not tolerate" human trafficking, forced or child labor in its operations or supply chain and suspends suppliers if any violation is found.
In the lawsuit, the company said that it buys cocoa from hundreds of producers, co-ops and merchants in the country and has no way of knowing whether child labor was used in any stage of that chain.
