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

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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.

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Members

General Assembly 2020 Information for Members (Members Version)

With less than a month to go to GPSNR’s General Assembly (GA) 2020, the Secretariat has scheduled a two-part webinar series on 8 & 9 September 2020 that will take members through the proposed resolutions to be voted on at the upcoming GA as well as introduce the candidates for the Executive Committee elections. Members may use the links below to register for the pre-GA webinars.

The Secretariat has also published an Information Booklet for all GPSNR members, containing key details around the event, including proposed resolutions and a list of candidates running for the Executive Committee Elections. 

Voting will take place online from 10 – 22 September via a secure e-voting system. All Ordinary Members must complete the Voting Registration Form by designating a single representative to vote at the General Assembly. Login details will be sent to registered voters only.

Any members encountering issues with the mailer and registration links may reach out to the Secretariat (info@gpsnr.org) for assistance.

Members

Updates from the Working Groups (Members Version)

Strategy and Objectives Working Group

The study on Human Rights and Labour Rights’ Risk Mapping in the Global Natural Rubber Value Chains conducted by independent consultants James Griffiths & Associates Sàrl has been submitted to the Working Group. The full study will be published on the GPSNR website shortly, and the document will be open to stakeholders for comments.

Meanwhile, the Strategy and Objectives Working Group has started to engage with the rest of the Working Groups on aligning with the Theory of Change, and developing platform KPIs. 

The Equity sub-Group has collected comments from the Strategy and Objectives Working Group on the proposed definition of equity. The sub-Group is also exploring engaging consultant James Griffiths to conduct research into equity risks along the natural rubber supply chain, with the plan to have the findings of this study feed into the definition. The sub-Group is currently in the process of establishing an operational plan to define the various workstreams, processes, timelines, and  responsibilities for the Living Income study. The first phase of the study will involve collecting existing benchmark data and doing desk research on national poverty lines, minimum wages, and other relevant information. For greater alignment with the Capacity Building Working Group’s scope, the Equity sub-Group has decided to focus on the same four countries: Côte d’Ivoire, Indonesia, Myanmar and Thailand. 

‘Policy Toolbox’ Working Group

The proposed Policy Components and Baseline Reporting Requirements are open for member consultation until 3 July 2020. Find out more here

‘Capacity Building’ Working Group

The regional sub-Groups described the various findings and recommendations in a presentation to the larger Working Group at the end of May. Eight initiatives were proposed to be shared across the four focus countries, each corresponding to a critical issue identified through stakeholder interviews. These eight initiatives are: access to pure certified (re)planting material, promote the CO2 compensation scheme, promote value rubber wood, improve access to finance, disease fighting, dissemination of Good Agricultural Practices (GAP), income diversification, and improve reach and quality of extension services. Depending on the initiatives recommended for each country, three priority actions have been suggested, forming the basis for a 3-year programme.

The sub-Group for Thailand organized a call with some of Thai smallholder members to seek their opinion on the proposed initiatives. The discussion proved to be a fruitful one, with the smallholders providing advice and suggesting alternative initiatives for the sub-Group to consider. The subgroup for Côte d’Ivoire, which has a smallholder member who is a representative from a local producer association in participation, has also contextualized the proposed initiatives to the local conditions of smallholders and industrial plantations.

The other sub-Groups are also planning to get smallholder members’ input on the capacity building initiatives for their respective countries of focus.

‘Traceability and Transparency’ Working Group

The Working Group has started discussions on risk assessment, and will be linking up with the Policy Toolbox Working Group as well as consultant James Griffiths on the results of the social risks study.

The terms of reference for the two pilot proposals have been finalized after several rounds of additional revision. The documents will be submitted soon to the Executive Committee. 

Smallholders Representation Working Group

The Working Group continues to plan and prepare for the smallholders programme prior to the General Assembly. In particular, terms of reference are being drafted for a professional facilitator to manage the smallholder workshop sessions for the pre-GA programme.

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