Fairtrade calls on the EU to clarify major EUDR laws and agree support for farmers
Fairtrade International has called on the European Commission for urgent clarifications on how the now EUDR deforestation regulations are set to be implemented ahead of its fast-approaching introduction this December, reports Neill Barston.
As the social justice movement noted, it strongly welcomes the prospect of the new laws, which place the burden of responsibility on companies to prove that they are not actively adding to the loss of vital forested areas in their supply chain, as well as delivering enhanced human rights protections for farmers operating with key sectors including cocoa and palm oil producers.
For its part, Fairtrade has stated it is ‘very concerned’ that producer organisations will be cut off from trade with the EU market or pushed out of supply chains by larger producers, not because they farm on deforested land, but because they face challenges in collecting, managing, and submitting the necessary data – which has yet to be fully explained in terms of precise requirements.
Moreover, as Confectionery Production has recently reported, fears have also been expressed by industry observers that the satellite geomapping systems underpinning the entire programme remain some way below 100% accuracy, given the dense, rural areas that it covers in core agricultural producing areas such as Ghana and Ivory Coast’s cocoa industry.
The mechanics of precisely who should pay for the compliance and monitoring systems has also yet to be fully determined – leading to concerns from farming communities that they would be saddled with further costs when many earn below poverty line wages of $1 a day.
Furthermore, under the new legislation – which has received pushback over its timescale from a number of nations across Europe, as well as concerns from the US government and agricultural organisations in Malaysia, Indonesia, and also within the Ivory Coast cocoa industry, larger companies would need to be compliant from 30 December 2024, and 30 June 2025 for smaller enterprises.
As previously reported, there have been calls from within the European Parliament for a two-year delay to the start of the EUDR regulations, though there has yet to be a formal vote on that proposal.
The regulation as it stands (and was adopted last year) applies to companies placing relevant commodities or products, including confectionery, chocolate and sweets, on the EU market or exporting those from it. They will need to demonstrate that their products are deforestation-free as of the 2020 cut-off date and are not linked to forest degradation or illegal harvesting and trade.
Call for EU action
According to Fairtrade, the EU needs to provide an assessment of the EUDR’s expected impact on the most vulnerable stakeholders in the global supply chain – small-scale farmers – and their ability to comply with the regulation, the administrative burden, and the compliance costs.
It also requires the development 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.
In addition, the organisation also called on the Commission to share the promised guidance document that helps clarify the application of the law, including defining key terms, explaining the rules on the traceability requirements and data governance across supply chains, and specifying the criteria used to verify compliance.
As Fairtrade noted, the EUDR’s Frequently Asked Questions have not been updated since December 2023, and in its view farmers should not have to bear the compliance costs linked to laws imposed by the EU.
The organisation noted that it has continued to offer assistance to businesses and communities in preparing for the new legislation, and linked to this ,it has updated its cocoa standard requiring its certified producers to strengthen their deforestation prevention, monitoring, and mitigation. The updated Standards align with the EUDR requirements, including that farms above four hectares in size or in high-risk areas must use polygon mapping, while smaller farms and farms in low-risk areas can use single geolocation points.
As part of this, Fairtrade partnered with nature tech firm Satelligence, which has helped monitor specific farms to ensure they meet expected industry standards, including flagging deforestation near farms, and delivers reports that agricultural cooperatives can use to ensure they are being as productive and efficient as possible.
