With the deadline of the European Union Deforestation Regulation still an active question, EU-based companies joined a Fairtrade webinar last week to learn the latest news about the regulation, what Fairtrade is doing to support EUDR readiness for coffee and cocoa producers, and the learnings from a Fairtrade certified coffee cooperative and a coffee importer about the process.

Here are four insights:

1. The challenge for cooperatives is not just learning the “what” of EUDR, but also the “how.”

According to Jennifer Valbuena Casalini from the Colombian coffee cooperative Red Ecolsierra, cooperatives are at many different stages when it comes to the EUDR. While many now understand the regulation, thanks to training from Fairtrade or other support, the biggest gap is implementing the things necessary to actually get ready for it. 

Especially important is the geolocation data that is a major part of the regulation, as all coffee and cocoa entering the EU market will need to be associated with farm plot geolocation data that can demonstrate it wasn’t grown on land that has been deforested since 2020.

Red Ecolsierra, a cooperative of 250 coffee farming families, also has an export arm, which works with other cooperatives in the region. Two critical topics that many cooperatives are confronting are the financial resources necessary to collect and manage geolocation data, and the associated technologies and tools that are needed.

For instance, some terrains require specific GPS technologies or special drones to collect geolocation data points. The costs associated with purchasing technology and getting expertise or training to be able to use it requires resources. In some cases governments may have these resources, or trade partners in the supply chain.

Fairtrade was mentioned as a support both in terms of resources and training, as well as the partnership with Satelligence, which provides free satellite imaging and analysis to Fairtrade cooperatives as part of the risk analysis process.

2. Data quality and good data management are essential – and time consuming.

Another part of the “how” for Jennifer is related to getting the data collection right. As she said, “It's not just about polygons. It's to be sure that the cooperative understands how they have to do it.”

This is an often neglected part of the conversation, according to Jennifer. Instead of just asking cooperatives for geolocation data, supply chain partners should be making sure the information was collected properly.

First, this means that the points are correct, avoiding errors such as points or lines within a polygon map, which Vanessa Heringer from the coffee trader Algrano also mentioned. 

Second, it means that permissions are properly obtained from farmers by the cooperative itself, and then that the cooperative has the ability to manage this data securely. 

Third, the flow of information is another aspect to consider. Satelligence as a tool supported Red Ecolsierra to develop strong due diligence processes and workflows.

Also relevant is having a culture of written policies and documented processes and reports, which many cooperatives don’t necessarily have. Thanks to Fairtrade certification for more than 20 years, and organic certification as well, Jennifer sees that documentation culture is the norm for Red Ecolsierra and its members, and supports EUDR readiness.

3. Supporting producers means a smoother due diligence process for EU operators.

Vanessa Heringer, Producer Success Manager at the Swiss coffee importer Algrano, shared learnings from her experience supporting cooperatives to first understand the EUDR, and then take the steps to collect geolocation data. 

Algrano’s model is one of close partnership with coffee cooperatives, serving as a platform for them to sell to roasters in Europe, as well as the US and Canada, including logistics, warehousing, financing, sales, traceability and compliance support through to import to the market destination. 

That’s why Algrano provides support on staff to educate cooperatives on the EUDR, and then to help with data verification once cooperatives upload their geolocation data.

Algrano also developed their own app to simplify the data collection process, providing “do’s and don’ts” guidance as well as real-time confirmation that the data points are realistic and include six decimal places, as required by the EUDR.

Because Algrano buys from many Fairtrade cooperatives, Vanessa could see the difference that Fairtrade support has made. 

“We realized that for those producers, it was much easier because they were already aware of what EUDR meant. Fairtrade is already providing the training, the tools, and also the templates for data collection, understanding the requirements of this new regulation, and also how to structure the data properly. (…) Having producers who are [Fairtrade] certified brings more security to the process.”

Once data are uploaded to Algrano’s platform, they run a pre-check with their own third-party system, and conduct a risk screening. If a deforestation alert comes up, Algrano contacts the cooperative, which decides what to do in that case, whether removing the coffee from that plot or appealing the alert. By having this data already checked, Algrano is prepared for sales to Europe. “It also means a smoother due diligence process and the first traceability for the client as well.”

4. Companies should start the conversation with their suppliers. 

According to Vanessa, “it doesn't matter where you are in the supply chain, (…) the first thing is to look at your supplier and see what he's starting from. Then you can also provide the support, and maybe the tools that they need as well.”

Jennifer from Red Ecolsierra echoed that, recommending “open conversations with these suppliers and try to understand the reality that they have in origin,” and from there, provide the support each cooperative needs based on their structures.

“That is basically the invitation, more to open dialogues and try to move together, not just divide the liabilities. It is more about sharing this process (…) in an easy way for all of us.”

Watch the full recording below, or on our Vimeo channel. Learn more about Fairtrade’s EUDR support here.

About the speakers:

Carmel Rawhani, PhD – Fairtrade International EUDR Programme Lead

Jennifer Alexandra Valbuena Casalini – Red Ecolsierra, International Business Director

Vanessa Heringer – Algrano, Producer Success Manager

Moderator: Brenda Mariana Huerta García – Fairtrade International Senior Advisor, Climate and Environment