International Coffee Organisation Highlights Traceability Challenges in Coffee Supply Chain Amid EUDR

What's Happening?

The International Coffee Organisation (ICO) has identified significant challenges in tracing coffee supply chains as the European Union Deforestation Regulation (EUDR) approaches. Coffee production involves millions of smallholder farmers in remote areas, making it difficult to gather precise information on origin and land use. The supply chain is highly fragmented, with around 70% of coffee produced by smallholder farmers, often passing through intermediaries before reaching exporters. This complexity is compounded by limited digital infrastructure and fragmented data collection systems. The ICO suggests that collaboration with governments and collective action can help mitigate these issues, with solutions like digital tools for geolocation and blockchain technology being explored to ensure farm-level traceability.

Why It's Important?

The challenges in coffee traceability have significant implications for the industry, particularly as the EUDR requires businesses to trace crops back to their source to ensure compliance with deforestation regulations. Larger companies with established sustainability programs may be better prepared, but small and medium-sized enterprises face greater hurdles. The inability to trace coffee effectively could lead to supply chain disruptions and increased costs, impacting both producers and consumers. Ensuring traceability is crucial for maintaining market access and meeting regulatory requirements, which could affect the livelihoods of millions of smallholder farmers and the global coffee market.

What's Next?

As the EUDR deadline approaches, the coffee sector is moving quickly to address traceability challenges. Pilot projects, national governmental traceability initiatives, and industry-wide platforms are being developed to ensure compliance. Coordinated action among governments, companies, and international organizations is essential to include all producing countries and farmer groups. The sector's readiness will depend on the successful implementation of these initiatives and the ability to overcome logistical and technological barriers.