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

News

Developing a GPSNR Assurance Model

Assurance is defined as demonstrable evidence that specified requirements relating to a product, process, system, person or body are fulfilled. In other words, thinking about Assurance is to ponder the question: how do we protect the credibility of our claim?

The Executive Committee (EC) has been working on an Assurance model concept since late 2019. Following the request for proposal put up in August 2019, an external consultant was engaged to conduct a review of the options for various Assurance Models that would support the desired outcomes of the Platform. In early 2020, the report from the consultant, which discussed existing approaches to Assurance and included recommendations for GPSNR’s approach to Assurance, was submitted to the EC. 

The EC considered the input from the report and expanded upon its findings by conducting a thorough benchmarking of existing Assurance model approaches. Following this exercise, the EC identified and defined several key characteristics that merit inclusion in GPSNR’s Assurance model concept.

In the process of developing these key characteristics, the EC also took into account the purpose, value and benefits of an Assurance model. 

A robust Assurance model would provide a credible and effective system to manage risks by supporting the achievement of sustainability impacts, focusing on accurate assessments of compliance, ensuring the effectiveness of its assurance strategies through good information management systems, and finding additional ways to create value for stakeholders.

A webinar will be held on Friday, 26 June 2020 to introduce GPSNR members to a proposed Assurance model concept.

A tabled summary of the process and timelines around the development of the Assurance model concept up until now is included below:

January 2020 Consultant report submitted to EC for review
January – February 2020 EC discussions
March 2020 Deep dive into Assurance model benchmark by EC sub-group
April 2020 EC agrees on basic characteristics to build Assurance model from
April – June 2020 Design, discussion and refinement within EC

News

GPSNR Working Groups Update: October 2024

Smallholders Representation and Capacity Building (SCB) Working Group:

The Project Management Subgroup has officially commenced its activities with a kick-off meeting and two preparatory sessions, setting the groundwork for project evaluations. The GPSNR Capacity Building website has been updated with data from projects up to Quarter 3 of 2024, providing members with the latest insights. This month, 10 Cambodian members were approved, with an onboarding call scheduled to welcome them, and the Smallholder pre-GA webinar took place on 18 November 2024 to support engagement ahead of the General Assembly.

The Secretariat continues to support registered smallholders in the lead-up to the General Assembly, with 9 Ivorian, 5 Thai, and 2 Indonesian smallholders currently awaiting membership approval. Ongoing capacity-building projects are being actively monitored and managed, including Phase 3 of the Indonesia GAP Project, where Koltiva is revising its training materials for smallholders based on valuable feedback received.

 

Shared Responsibility Working Group:

To further the work on the Shared Investment Mechanism, the Project Management subgroup has approved the Project Evaluation Criteria document and will start to evaluate projects to ensure conformance with GPSNR’s requirements for capacity building projects. The subgroup will continue to review project proposals and aims to have all proposals reviewed by mid-February.

On Value Transfer related tasks, the Executive Committee’s value transfer task force met for a first meeting to discuss the next steps, agreeing that the mechanism should reward smallholders who have already put sustainable practices in place. Value transfer task force is developing a series of simple indicators that can showcase improved smallholder performance, and ways that smallholders can support this with evidence. Further discussions will continue in December. 

Scroll to Top