Empowering Smallholder Farmers: The Path to Deforestation-Free Rubber Supply Chains to Meet the EUDR

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On Wednesday, 19 April 2023, the European Union approved the upcoming Deforestation-Free Regulation (EUDR) to prevent companies from placing products linked to deforestation onto the EU market. As part of the wider vision of the EU Green Deal, it will demand companies who import rubber or rubber-based products (e.g., tires) to verify that their supply chain is deforestation-free. It’s a push towards an era of environmental accountability, yet it also sparks debates about the path forward for the rubber industry.

The EUDR requires companies to have traceability to the farm level, including geo-location data and proof of land legality. According to the regulation, every plot below 4 hectares requires at least a GPS point coordinate, while plots above 4 hectares must have a polygon.

Fulfilling these traceability requirements is no small feat. There is concern from the industry that smallholder farmers may be unintentionally excluded from global sustainable supply chains. Ensuring smallholder farmer inclusion requires a holistic sustainability approach.  There is no doubt that the rubber industry has begun moving towards sustainable rubber sourcing through combined industry efforts like the Global Platform for Sustainable Natural Rubber (GPSNR). However, the reality is that most imported rubber to the EU currently does not meet the regulatory requirements as the industry lacks traceability to the farm level. As 85% of the global natural rubber supply is supplied by approximately 6 million smallholder farmers, the implications of this regulation could be far-reaching and severe, particularly for these smallholder farmers.

However, there is a lot of hope.

Firstly, even though it might seem challenging, traceability to the farm level is doable – even for the rubber industry. This has been demonstrated in a GPSNR-funded farmer training and coaching project primarily focused on supporting smallholders to apply Good Agriculture Practices (GAP). Koltiva, the company I am working for and who was selected to be the implementing partner for this project, has mapped more than 4,000 farmers and their farms to help them to prepare for the EUDR in less than a year.

Secondly, we believe that traceability to the farm is scalable. In our work with clients in 51 countries, we were able to map almost 1 million smallholder farmers through our KoltiTrace platform. Platforms such as KoltiTrace allow companies to map and verify their supply chain, including transaction traceability from Seed to Tire and deforestation-free analysis.

Finally, EUDR could have a long-term positive impact on smallholder farmers. Currently, many rubber farmers do not have proper land titles. Due to the EUDR geolocation requirements, many smallholders will, for the first time, have access to a map of their own plantation, allowing them to legalize their land.

And it doesn’t stop there. Smallholders have largely been invisible in global supply chains. Traditional development programs have tried to engage them, but they have not reached the expected results. Many smallholders still have no access to knowledge, no access to capital,  and soon will also be excluded from the carbon economy.

I believe that it’s possible to bridge these gaps. Traceability to farm level and digitalizing the first mile of agricultural value chains can lay the foundation for holistic sustainability interventions. Enabled by technology and data, the sector can equip farmers with critical knowledge, improve their access to finance, actively support farmers to apply low-carbon practices and enable them to reap the benefits of the growing carbon economy.

While traceability cannot be achieved overnight, the rubber industry is in a unique position. At GPSNR, the major industry players are sitting at one table. Through combined efforts and data-sharing agreements of shared supplier data, the rubber industry can become a leading example of how to meet the EUDR.


About the Author:
Luca Fischer is Koltiva’s Program Manager, leading Koltiva’s boots-on-the-ground implementation projects in the rubber sector globally. He bridges the gap between the client, product, and field teams.

Luca has over five years of work experience in sustainable sourcing, smallholder livelihood, and climate-smart agriculture development. He graduated with an M.Sc. in Sustainable Resource Management from the Technical University of Munich, Germany.

About Koltiva (click here for more information)
Established in 2013, Koltiva is a leading agritech company for enterprises to make their global supply chains traceable, inclusive, and climate-smart. Backed by Koltiva’s human-centered technology with boots-on-the-ground professional service, Koltiva supports some of the largest multinational companies by digitizing and verifying global supply chains, focusing on enhancing traceability, inclusiveness, and sustainability. Koltiva combines triple-tech (AgriTech, FinTech, and ClimaTech) to improve producers’ outcomes and profitability while building more sustainable supply chains.

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News

Notice of GPSNR General Assembly 2020

The 2nd General Assembly (GA) of the Global Platform for Sustainable Natural Rubber (GPSNR) will be convened on 23 September 2020. Given the exceptional circumstances surrounding the COVID-19 crisis, the decision has been made to hold the GA virtually.

In making this decision, the GPSNR Executive Committee (EC) considered the importance of the issues that require a vote from GPSNR members, the impacts and consequences of a further postponement of the GA, as well as the current global situation resulting from the COVID-19 pandemic. The EC felt that a GA held online would meet both criteria of ensuring the safety and comfort of GPSNR members while moving forward the effort of the Working Groups in achieving the Platform’s strategic outcomes.

The GA will take place online, with the voting process also conducted electronically. In lieu of face-to-face member engagements, a series of webinars will be organized to prepare members for the GA.

All members are reminded to submit to the Secretariat their proposed resolutions and/ or nominations for election to the Executive Committee no later than 1 August 2020.

News

GPSNR Working Groups Update: April 2023

Strategy and Objectives Working Group

The working group includes both the Risk subgroup and the Assurance Model task force and is currently working on some exciting stuff!

The Risk subgroup has been busy, with consortiums Agridence and Koltiva having kick started their pilot field trials on the traceability tools. They are actively pursuing the next steps for the deliverable from ASI on the Risk Assessment Framework. This includes conducting internal piloting and cross-walking the tool with GPSNR commissioned studies to identify gaps. Lastly, second in an ongoing series, the Traceability Tools Webinar will be occurring on 26th April and you may register for it here

The Assurance Model taskforce will be meeting to discuss updates on KPI alignments, due diligence system and the members progress model. 

Smallholders Representation and Capacity Building (SCB) Working Group

The SCB Working Group has proposed a new structure with three co-chairs and this has been officially endorsed. The next Working Group meeting will take place on 27th April, where they plan to formally endorse the Terms of Reference. 

Updates on the Income Diversification and Rubber Agroforestry taskforce, the strategy for 2023-2024 has been endorsed, and the taskforce will continue their work on planning the schedule and sequence of workshops and finalising the contractual plan. 

On the Digital Knowledge Sharing Platform front, Koltiva will work together with the taskforce to start developing the app and its features. In upcoming news, the Thailand Good Agricultural Practices (GAP) subgroup will publish the tender soon. 

 Policy Toolbox Working Group

Input has been collected on the reporting process from members through the Year 1 Reporting Review Survey. As part of this review, stakeholder- specific meetings will be conducted to collect more feedback on the reporting process. Based on the Year 1 Reporting Review results, any changes will be assessed to the reporting framework and its details (i.e., Process, Extensions, Questions), and disclosure requirements will need to be agreed on for reporting Years 2 and 3 (Transporting Reporting Roadmap- TRR). Future actions will require the reporting guidance for Year 2 to be improved according to changes proposed to the reporting matrix.

An RFP for consultants has recently been published to look into proposing a quantitative orientation for the reporting matrix and do a crosswalk with other reporting frameworks (CDP Forest, GRI and ZSL-SPOTT). On news of the Assurance Model front, what follows would be to finalise Compliance Panel Terms of Reference and operational guidance based on the Assurance Model.  

Shared Responsibility Working Group

During the physical meeting in January- February, the Governance and Guiding Principles were presented, Manufacturers will provide a revised document of said principles by April. 

Next phases for the Working Group are pending the outcomes of discussions on shared investment principles, which are currently happening on the Manufacturers category level. The Working Group will revamp data sharing and value transfer discussions once the proposal from the Manufacturers is available.

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