Fairtrade International calls for financial support for small-scale farmers over EU deforestation regulations

13 Aug 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 organization 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).

The main fear is that producer organizations 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 Fair Trade 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.”

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 Fair Trade 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.

By Gaynor Selby