KAMPALA, August 14, 2024 – Fairtrade International is calling for more financial support and clarification of the technical terms of the EU Deforestation Regulation [EUDR]. The regulation mandates that companies demonstrate that their products are deforestation-free and not linked to forest degradation or illegal harvesting and trade.
The organisation wants more clarity from the European Commission so that coffee and cocoa producers can meet the looming deadline of December 30, 2024 [June 30, 2025, for small and micro enterprises].
Fairtrade is also urging that once the rules are clarified that the transition period be extended by at least 15 months, which would be mean until 31 December 2025 at the earliest.
The main fear is that producer organisations in Africa, Asia, and Latin America will be cut off from trade with the EU market or pushed out of supply chains by larger producers. Fairtrade says this is not because they necessarily farm on deforested land but due to challenges in collecting, managing, and submitting the necessary data.
Administrative and cost burdens
Fairtrade International is asking the Commission to address the regulation’s “shortcomings.” It lists a series of recommendations to help the risk associated with how small-scale farmers will manage.
One key recommendation centers on helping them navigate the administrative burden and compliance costs, while another demands more information to clarify the law’s application. This includes asking for a better definition of key terms, explaining the rules on the traceability requirements and data governance across supply chains, and specifying the criteria used to verify compliance.
Fairtrade International also calls for the EC to offer market incentives and funding to help millions of small-scale farmers comply with EUDR requirements.
“The EC needs to immediately provide an assessment of the EUDR’s expected impact on the most vulnerable stakeholders in the global supply chain,” says a Fairtrade International statement.
“And to develop a coherent EU framework strategy for supply side partnerships with producer countries that create a space for multi-stakeholder dialogue and are linked to efficient economic and trade incentives.”
The Fairtrade Advocacy Office stresses that it welcomes EU legislation to help tackle deforestation linked to food supply chains. “The farmers should not have to bear the compliance costs linked to laws imposed by the EU.”
It adds: “Right now, according to our estimates, 60 percent of Fairtrade certified organic coffee producers, 60 percent of Fairtrade certified organic cocoa producers, and 95 percent of Fairtrade organic small-scale banana producers do not currently meet the new EU Organic Regulation.
The business and supply reliability of Fairtrade organic products, along with the livelihoods of more than estimated 800,000 families, is at stake. The new European Parliament needs to ensure that these issues are on the top of their agenda.”
Updated standards
In a bid to help farmers comply with the EUDR, Fairtrade International recently updated its Cocoa Standard [2022] and Coffee Standard [2024], which require Fairtrade-certified producers to strengthen their deforestation prevention, monitoring, and mitigation.
Fairtrade International has also joined forces with nature tech firm Satelligence, which verifies data and then detects any deforestation activity within members’ boundaries and whether or not farms are located in protected areas.
It also flags deforestation near the farm as part of a risk assessment.
The Fairtrade Advocacy Office stresses that it welcomes EU legislation to help tackle deforestation linked to food supply chains. However, it says addressing such a complex issue requires legislation that accommodates the specific players and commodities involved.
https://thecooperator.news/eudr-us-demands-delay-to-protect-food-businesses/
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