News & Media

The Lapland District Court has initiated preliminary proceedings in a human trafficking case. As part of these proceedings, pre-investigation materials, the indictment, and the defence’s initial responses have been made public. 
 
Jukka Kristo, the former CEO of Polarica Marjanhankinta Oy, has categorically denied all charges and related claims. The company has also contested the proposed corporate fine. The main hearing is scheduled to take place in 2025.
 
"This is an exceptional and serious case. The criminal elements in question are difficult to interpret. The charges are being denied because the alleged crime did not occur," stated Kai Kotiranta, po. attorney to Jukka Kristo and Polarica Marjanhankinta Oy.
 
For further inquiries:
Kai Kotiranta, Attorney
Tel. +358 40 178 7220
 
Please note that neither Mr. Kristo nor Polarica Marjanhankinta Oy will be providing additional comments at this time.

Polarica is pleased to announce the publication of its sustainability report for the fiscal year 2023-2024. This is the second annual report detailing our initiatives and progress since the launch of our sustainability program in 2023.
 
This year, we have made great progress in our strategy, ownership structure, and value chain management, including trips to several international suppliers.
 
We have also increased transparency by developing a new communication strategy and providing detailed process descriptions of our berry supply chain, from farm to table.
 
Key highlights of this year's report include:

• Appointment of a Sustainability Coordinator
• Participation in a Fairtrade pilot program to establish criteria for sustainable berry-picking
• Development of new cultivated berry and fruit products
• Calculation of CO2 emissions for the past three years

You can read the full Sustainability Report here.

Polarica Berry Group has received notice of the charges brought against Jukka Kristo, former CEO of Polarica Marjanhankinta Oy for aggravated bribery and against the company’s current CEO for aiding in crime. 

The charges allege that Mr. Kristo personally sponsored one individual closely associated with an official.

The prosecutor’s office is also imposing a corporate fine of €80,000 on the company. 

Both Jukka Kristo and the current CEO have denied the charges, and Polarica disputes the basis for the corporate fine.

For further inquiries, please contact attorney-at-law Kai Kotiranta, tel. +358 40 178 7220.

Fairtrade Finland has initiated a pilot project in collaboration with Polarica, Arctic International, Kesko and Valio, involving the entire supply chain of the wild berry industry. The aim of the pilot project is to create local certification criteria for wild berries to solve the challenges related to berry picking industry in Finland.

One of the objectives of the pilot is to tackle the complexities associated with berry picking in Finland. Moreover, recognizing the human rights challenges with berry-picking activities, it addresses concerns related to working conditions, earnings, and recruitment costs of foreign workers during the berry-picking season 2024.

"Fairtrade has decades of experience in developing countries for preventing the types of human rights risks that also affect wild berry picking in Finland. I believe that by working together with the pickers, the supply chain and our stakeholders, we can also find sustainable solutions to these issues in Finland," says Fairtrade Finland's Executive Director Janne Sivonen.

The Criteria Involves the Entire Supply Chain

The pilot will assess the feasibility of establishing Fairtrade-compliant certification criteria for domestic wild berry production processes that take human rights comprehensively into account. The project is scheduled to run until autumn 2024, with the criteria set to be ready for implementation during summer 2024 picking season.

The Fairtrade certification criteria are recognized as the most researched and ambitious in the world. The berry criteria now being drawn up will create a completely new operating model for Finland's wild berry industry, aimed to bring about concrete changes in the working conditions, earnings, recruitment practices and costs, as well as in the organisation of the pickers.

A broad, multisectoral group of stakeholders will be consulted when creating the criteria, including the pickers, companies, and authorities. The criteria will comply with international human rights norms, such as the principles of the International Labour Organization (ILO) and the United Nations Guiding Principles on Business and Human Rights.

This is the first time that Fairtrade Finland is working on criteria related to domestic products. The criteria regarding the use of the Fairtrade mark prohibit discrimination, forced labour and the exploitation of child labour, and they promote equality and democracy.

Aiming for Responsibly Produced Domestic Wild Berries

Polarica and Arctic International have operated in the domestic berry industry for a long time and see development opportunities for the entire industry in the pilot project.

"Polarica is committed to responsible operating methods, and we want to renew the berry industry sustainably from both environmental and human perspectives," says Mari Onkamo, CEO, Polarica Group.

The retail sector is hoping to procure responsibly produced domestic wild berries.

"We have a long-term, systematic cooperation with our partners to ensure the responsibility of the products. This pilot project is a continuation of the close discussions with the suppliers, and in order to solve the challenges of the berry industry, it is important that the whole supply chain is involved in the pilot", says Timo Jäske, Sustainability Director, Kesko's grocery trade.

"Our aim is to buy responsibly produced domestic wild berries. To ensure this, we call for active cooperation between the berry picking companies, berry buyers, civil society organisations and supervisory authorities. With Fairtrade's expertise, experience and international networks, our goal is to create the criteria and an operating model that promotes ethical berry picking in Finland", says Valio's Sustainability Director Hanna Hiekkamies.

On 26.2.2024, the Northern Finland Prosecution District announced charges against Jukka Kristo, former CEO of Polarica Marjahankinta Oy, for aggravated human trafficking.

Throughout the ongoing preliminary investigation, Mr. Kristo has maintained his innocence and is determined to contest the charges.

"I strived to bring transparency and continually improve operations in collaboration with various authorities and stakeholders. These baseless charges are therefore quite shocking, especially after years of dedicated efforts in advancing sustainable berry picking practices," says Jukka Kristo.

Mr. Kristo stepped aside from his role at the company at the end of 2022.

Polarica Marjahankinta Oy and its management categorically reject any insinuation of unlawful conduct.

"Polarica aims to be a beacon of positive change in the berry industry. We remain committed to responsible practices and sustainability," asserts Mari Onkamo, CEO of Polarica Group.

For further information, please contact:

Mari Onkamo, CE

Mari.onkamo@polarica.com

Polarica Berry Group is a Nordic provider of wild-berries and fruit-based products. We aspire to be a beacon of positive change in the berry industry through visionary leadership in sustainability, technology, and customer-centricity. Polarica has operations in 3 countries, employs over 200 people and has headquarter in Haparanda, Sweden

Polarica, a leading supplier of frozen berries and fruits, is taking significant steps to enhance transparency in its operations. This initiative comes as part of Polarica's commitment to sustainability, and it aims to provide stakeholders with a more comprehensive view of the company's efforts to improve the well-being of our service provider’s berry pickers.

Polarica is actively working to improve its relationship with berry pickers, ensuring that fair compensation, working conditions, and well-being are prioritized. This transparency initiative aligns with Polarica's recently launched comprehensive sustainability program, which is dedicated to improving various facets of the business, including social responsibility.

Accommodation and Work Environment

Our accommodation facilities adhere rigorously to all regulatory requirements. The working environment and accommodations are inspected by reputable third-party auditors, including Kiwa, Kommunal, and the municipality's environmental and health inspectors. Any deficiencies identified during these inspections are promptly rectified, underscoring our unwavering commitment to safety and comfort.

Working Hours

Our Service provider keeps a standard workweek of 40 hours, and we get detailed information regarding our service provider’s berry pickers working hours. We recognize the importance of flexibility, allowing pickers to schedule their work hours within the week, bearing in mind the variable nature of weather conditions and the unique work and rest routines of each individual. It is important to note that time spent outside of the accommodation does not necessarily constitute working hours, and the inherent mobility of our workplace presents certain challenges for precise monitoring.

Dining Arrangements

Our service provider’s pickers receive three daily meals. Two meals are delivered to the pickers at work in the forest, while dinner is served at the accommodation. The daily food intake per person includes approximately 1.8 kg of cooked rice, 0.55 kg of meat or fish, 0.35 kg of seasonal fresh vegetables and frozen blends, 2 eggs, along with a variety of Thai spices, sauces, and coconut milk.

Vehicle Expenses

To alleviate any burden on our service provider’s pickers, we assume full responsibility for all vehicle and trailer expenses. Our service provider’s vehicles undergo comprehensive inspections, are duly registered, and carry insurance coverage. Additionally, pickers receive separate compensation to offset their estimated fuel costs.

Employment Contracts

Each of our service provider’s pickers enters into a formal employment contract with their employer in Thailand. These contracts detail matters such as salary, working conditions, and expenses. The picker receives an original copy of the contract, while the employer retains a duplicate for record-keeping purposes.

Minimum Net Income

To promote increased transparency in our industry’s business practices, we will publicly disclose the minimum net income for the first time.

The minimum wage is calculated as follows: 24,110 SEK per month, which totals 48,220 SEK for two months, plus an additional 6,269 SEK for vacation pay, resulting in a total of 54,489 SEK.

Polarica offers subsidies to cover a portion of travel expenses, enhancing the overall net income of berry pickers. While the standard travel budget is set at 78,000 THB, pickers hired by Polarica’s service provider enjoy decreased travel expenses of 65,900 THB. Total expenses include the travel budget, equivalent to 20,723 SEK, along with 17,400 SEK for expenses in Sweden.

The minimum salary guaranteed for a two-month period is 54,489 SEK, and the minimum net income after expenses is 16,366 SEK, with the potential to earn more depending on picking results. The average gross salary in 2023 was over 70,000 SEK.

Cooperation with Authorities

In light of recent developments, the Finnish and Swedish Competition and Consumer Authorities conducted inspections in September, encompassing specific companies within the industry, including Polarica.

These inspections were carried out to investigate potential anti-competitive practices within the market for the purchase and wholesale distribution of Nordic berries. It is imperative to clarify that these inspections are purely investigative measures and do not suggest any unlawful activities on the part of the businesses under examination. Polarica is fully cooperating with the authority's inquiry, providing the necessary information to facilitate a comprehensive and transparent investigation.

For additional information please contact mari.onkamo@polarica.com

Finnish Competition and Consumer Authority has carried out an inspection in Polarica AB and its group companies in Finland and Sweden. Polarica cooperates with the authority in investigating the matter and provides the information needed by the authority. Polarica denies that it acted in any way in violation of the competition rules.

Polarica, a leading berry and fruit supplier, announces the release of its inaugural Sustainability Report, showcasing the company's dedication to environmental stewardship and social responsibility.

The Sustainability Report highlights Polarica's achievements in key areas, including sustainable sourcing practices, waste reduction initiatives, and community engagement. It provides a comprehensive overview of the company's commitment to sustainable business practices.

Polarica's Managing Director, Mari Onkamo, emphasized the significance of the report, stating, "Our Sustainability Report is a crucial component of our wider sustainability program. It demonstrates our ongoing efforts to operate in an environmentally responsible and socially conscious manner, ensuring the long-term sustainability of our business and the communities we serve."

The Sustainability Report serves as a transparent resource for stakeholders, offering valuable insights into Polarica's sustainability efforts and progress. The report is available here.

Based on our recent reviews berry harvest is anticipated to be unpredictable in the Nordic and Polish regions this season.

The Nordic Harvest Report reveals regional differences in bilberry blossoming. While some areas in Southern Finland bloomed early, others in the North and Northeast experienced a slight delay due to the rapid onset of spring followed by cold weather. Frosty nights have an effect on crops, and the outcome will be determined in the coming weeks.

The Poland Harvest Report outlines challenges for the upcoming berry season due to frosty nights, temperature fluctuations, and severe drought. Losses on plantations range from 30% to 40% for each berry type, with significant impacts on strawberries, red and black currents, and rhubarb. Labor availability for harvesting wild blueberries is also a concern.

Polarica is actively addressing these challenges to ensure the supply of high-quality berry products to our customers. We will continue to monitor the situation and work with growers and partners to navigate potential impacts.

More information on harvests in Finland, please visit the Natural Resources Institute Finland: https://www.luke.fi/fi/seurannat/luonnonmarjojen-satoseurannat-ja-ennusteet

The Polarica Berry Group is strengthening its commitment to sustainability launching a comprehensive project that aligns with its strategic goals.

The updated strategy, which will be finalized in early 2022, includes key actions such as increasing supply chain transparency, strengthening social responsibility, and pursuing carbon neutrality by 2030.

The focus in spring 2023 will be on identifying relevant sustainability themes for the company's business operations. Clear objectives for the 2022-2026 strategy period will be established, accompanied by the development of a detailed action plan to drive progress in various areas.

The sustainability project encompasses social, environmental, and economic responsibility. It began with a human rights assessment at the start of the year and is scheduled to end in May-June.

Polarica CEO, Mari Onkamo, is personally leading the sustainability project. Regular updates regarding our sustainability endeavors will be communicated through our website.

The forthcoming berry season is expected to yield a good harvest, provided that the cool weather forecasted in the coming weeks does not significantly reduce the number of pollinators. Sustaining pollinator numbers is crucial to safeguard the potential for a fruitful yield. We, therefore, continue to rely on foreign pickers to ensure the successful harvest of a portion of the berry crop.

Recently, Polarica has received a positive reliability assessment score from the Finnish Employment and Economic Development Office (TE-keskus). As a result, we have extended invitations to Thai pickers for the forthcoming summer season, albeit in significantly reduced numbers compared to last year.

The Polarica Berry Group operates with a commitment to responsible practices across its entire business, including employees, subcontractors, partners, customers, and the environment.

Reforms for the upcoming season

As industry pioneers, we strive to maintain our leading position in the berry sector. Public discourse surrounding industry practices persists, and it is expected that regulatory investigations into the matter will continue until at least the end of this year. We stand ready to collaborate with regulatory bodies in improving berry-picking practices.

We have implemented new measures to ensure favourable harvesting conditions and fair compensation for our berry pickers.

In preparation for the upcoming season, we have undertaken the following initiatives as part of our comprehensive sustainability project launched in 2022:

· We conducted an extensive human rights assessment led by independent experts and published a comprehensive human rights policy
· Provided training to our staff on human rights responsibility and anti-corruption measures
· Developed a sustainability program extending until 2026
· Conducted thorough inspections of accommodation facilities in Finland, overseen by construction professionals, and implemented necessary corrective actions
· Increased pre-harvest training for pickers
· Enhanced on-site presence at camps, with two camp coordinators assigned to both Finland and Sweden
· Established a real-time feedback channel for pickers
· Revised our internal guidelines and subcontractor contracts, now incorporating subcontractor auditing provisions
· Reduced the number of Thai partners in Sweden from two to one
· We have mandated Laatutarha certification for all smaller fruit suppliers in Finland.

Moving forward, we will continue to improve operations in collaboration with our partners. Prior to the season, we will release a sustainability report, and in June, we will launch a new website with detailed information about our activities.

Polarica Berry Group is firmly committed to upholding human rights, including labor rights, throughout its entire business operations and value chain. This commitment is underscored by the recent approval of our comprehensive human rights policy by the company's board on March 3, 2023. This policy serves to define and reinforce our ongoing efforts to promote and safeguard human rights, extending to all facets of our organization. In order to gain deeper insights, in late 2022, we conducted a thorough human rights impact assessment (HRIA) with the guidance of an external expert. Through this assessment, we identified the key stakeholders affected by our operations, encompassing our employees, individuals within our supply chain, end-users of our products, and local communities. Additionally, we identified specific human rights areas that warrant greater attention within our operations.

The biggest challenge in our supply chain is sourcing raw materials and the recruitment of seasonal berry pickers. To effectively manage these risks, we employ a range of robust auditing measures.

We strive to mitigate any potential negative human rights impacts in our sourcing activities by constantly refining our processes. Our utmost priority is to ensure that our procurement practices are free from forced labor, illegal child labor, and all forms of human trafficking.

Furthermore, we place great emphasis on enhancing our proficiency in human rights responsibility and actively working towards the realization of human rights within our organization.

On Saturday October 1st, the Oulu district court passed an order of detention related to an ongoing investigation on human trafficking crimes. As part of the investigation, the CEO of Polarica Marjahankinta Oy, Jukka Kristo has been ordered to be detained.

Kristo has denied all allegations of any criminal offence.

Polarica Marjahankinta Oy and its management reject all accusations about unlawful conduct. The company has properly fulfilled all its obligations with regards to legislation, public authorities, and its clients.

The act on the legal status of foreigners picking natural products that entered into force in Finland last year has strengthened the status of pickers of wild produce. The new act has also brought clarity to the legal situation. Polarica Marjahankinta Oy has been active in the preparation of this act that is essential to companies in wild produce business.

We want to be an industry leader in social responsibility and aim to continuously improve our operations and increase transparency together with Finnish and Thai authorities and other stakeholders. This cooperation aims to ensure the transparency of operations and achieve the interests of all parties concerned.

The ongoing investigation has no effect on the business operations of Polarica Marjahankinta Oy which shall continue as normal.

Additional information, Mari Onkamo mari.onkamo@polarica.com