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

Share This Post

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.

More To Explore

Sept22 Newsletter Image
News

GPSNR Working Groups Update: September 2022

Strategy and Objectives Working Group

The assurance model taskforce, which sits under the umbrella of this working group, worked on establishing KPIs, GPSNR and Company targets, and tasking the KPIs to other working groups, categories and members. Its other subgroup on risk is currently working on a proposal for the definition of polygons in the EU Deforestation Regulation based on a request from GPSNR member ETRMA.

Smallholder Representation Working Group

After completing its first round of pilot agroforestry workshops in Indonesia, the working group has its next round planned in Cambodia at the end of October 2022. Subsequently, they are preparing for country-based focus group discussions on the Smallholders Policy Equivalent and for the GPSNR-HCSA Smallholder Toolkit Field Trials.

Policy Toolbox Working Group

The group is working on finalizing the TORs for the Year 1 Reporting Review to be conducted in the first quarter of next year. They are also assessing if any changes to reporting framework and its details (i.e. process, extensions, questions) are needed based on the Year 1 Reporting Review results.

Capacity Building Working Group

The group is currently evaluating proposals to appoint a software developer for the second phase of the GPSNR Knowledge Sharing Platform. They will also soon be kicking off the Disease Fighting Project with SNV-IRRI in Indonesia, after having recently completed the first milestone of the SNV-Proforest GAP coaching in the country. They continue to seek members’ funding for capacity building projects in Indonesia (second stream of disease fighting) and Cote d’Ivoire (training centres). To know more, you can find the project details here.

 

Shared Responsibility Working Group

The group is working on the deliverables discussed for each of its sub working groups during the in-person meetings, and will present findings to the membership on 15th November 2022.

News

GPSNR Working Groups Update: January 2024

Strategy and Objectives Working Group: ASI finished the initial draft of the Assurance Model proposal and presented it to Working Group (WG) members in December for their feedback. To gather more specific insights, feedback calls were arranged with various categories. Based on the feedback received, ASI plans to revise the draft and present it for further discussion at the February in-person meetings.

Smallholders Representation and Capacity Building (SCB) Working Group: Smallholder representatives attended the 5th Sustainable Rubber Plantation and International Conference in Buriram, Thailand, from December 13-15, 2023, to discuss sustainable practices. A consultation on the assurance model was held on January 25, 2024. Both SNV-Proforest’s Indonesia GAP and SNV-IRRI’s Disease Fighting project concluded in December 2023, with final reports submitted. Koltiva’s Indonesia GAP project, extended until September 2024, received additional funding from Goodyear. 

The Thailand agroforestry project signed a supplemental agreement for more projects. Southland and Sri Trang joined the Thailand GAP project as processors, with training material under review. 

The Digital Knowledge Sharing Platform (KSP) task force completed its user acceptance test, releasing the Rubber Wiki app on the Google Play Store. Koltiva was awarded the third phase of KSP for content development with the task force’s content development phase kicking off on January 25, 2024.

Continental pledged funds for capacity-building in Cote d’Ivoire. The Cote d’Ivoire subgroup will discuss new Continental-funded projects.

Two SCB WG meetings were scheduled on December 26 and 31 for final presentations and updates on various projects, including endorsements. The Thailand Agroforestry project plans training for late January 2024, and the Thailand GAP project aims to start training in late January or February 2024. The Income Diversification and Rubber Agroforestry task force is planning its third agroforestry workshop in Liberia from May 22-24, 2024.

Shared Responsibility Working Group: The Working Group is initiating initial steps to explore ways to develop a value transfer mechanism in GPSNR. The Secretariat has discussed possible paths with the co-chair, who will present these plans to the EC in the near future.

Executive Committee: The EC convened for an in-person strategy planning session in Paris, where they identified and outlined key strategic priorities in a Gantt chart. he Secretariat, along with members and WGs, will collaborate to implement these strategic priorities set forth by the EC.

Scroll to Top