EUDR

Introduction

As a specialty coffee cooperative and exporter from Brazil, we at Sancoffee have been closely following the European Union Deforestation Regulation (EUDR) and its implications for our industry. The EUDR, aimed at eliminating the import of agricultural commodities from deforested areas into Europe as of December 31, 2020, includes coffee among its seven targeted commodities. Even though Sancoffee’s relationship model has long offered full traceability of coffee lots and cooperation with the farm to ensure the protection of the natural environment, we have taken measures to adapt with specific regulations.

Coffee's Inclusion in EUDR

The inclusion of coffee in the EUDR is understandable given its economic significance and historical risk of contributing to deforestation. However, such regulations should be developed collaboratively, incorporating perspectives from all stakeholders in the coffee sector, not just the European Union.

Core Principles of EUDR and Our Role

The EUDR aligns with the EU’s goal of becoming carbon neutral by 2050, demanding sustainable practices to reduce greenhouse gas emissions. From our perspective as both producers and exporters, transparency and reliability in data sharing are crucial for EUDR's success. Certifications like Rainforest Alliance and Certifica Minas are integral to our operations, helping us guarantee product traceability and adherence to ethical standards.

Anticipated Changes in the Coffee Market

The EUDR could reshape the coffee market significantly. Many coffee-producing countries might face severe challenges due to insufficient local infrastructure and lack of support to meet the law's demands. Consequently, some origins might lose access to the European market, affecting coffee availability and prices. For Brazil, the EUDR could bring positive outcomes. Enhanced sustainable practices and increased transparency will likely benefit the coffee marketmarke.

Operational and Regulatory Challenges

Compliance with EUDR introduces several challenges for producers, including increased operational costs and potential regulatory hurdles. Without adequate technical, financial, and institutional support, producers might struggle to meet the law's requirements, risking market access and competitiveness. A collaborative ecosystem involving all stakeholders is essential to help producers navigate these challenges.

EUDR vs. Coffee Certifications

The EUDR shares common ground with existing agricultural certifications such as Fairtrade, UTZ, and Organic in promoting good environmental and labor practices. Both require traceability and proof of sustainable production. The EUDR enhances these efforts by enforcing compliance with stringent environmental standards, ensuring that coffee is produced responsibly.

Navigating National and EUDR Regulations

Brazilian legislation, which prioritizes forest and biodiversity conservation, often takes precedence over EUDR. The Brazilian government actively defends the agricultural sector's interests, engaging in discussions to prepare for EUDR's demands while considering its impact on producers. This proactive stance helps align national and international regulations, facilitating smoother compliance. 

Achieving Sustainable Coffee Production

We believe it is possible to enjoy coffee produced without deforestation. The Brazilian coffee sector has embraced sustainable practices, leveraging technology to enhance productivity without expanding into new areas. While the EUDR presents challenges, it also encourages the entire supply chain to support sustainable production, ensuring consumers can enjoy responsibly produced coffee.

Preparing for EUDR at Sancoffee

At Sancoffee, we are actively preparing for the EUDR. Our importers and roasters are organizing to meet the regulation's demands, and we are building detailed polygons for our cooperative members and partner farms. Partnering with CECAFÉ (Council of Coffee Exporters in Brazil) , we are implementing the Serasa Experian platform to ensure compliance through image analysis of production areas, guaranteeing that our coffee does not originate from deforested regions.

Along with different actors in the supply chain, Sancoffee is actively preparing to operate under EUDR norms. As a first step, we have reviewed all our traceability database to adapt geographical coordinates from the rural and environmental land registration (CAR), which is mandatory by Brazilian law. In order to do so, we are using new satellite image tools provided by SERASA Experian that have been accredited and enable the transfer of coffee area polygons in compliance with the EU regulations, guaranteeing that coffee produced by Sancoffee farms do not originate from areas undergoing deforestation.      

Supporting Small-Scale Farmers

For small-scale coffee farmers, effective and inclusive regulation compliance requires collaboration between public and private institutions. Sancoffee works closely with Emater to certify producers in Certifica Minas and provide support with the construction of polygons. All properties will be verified on the SERASA Experian platform.

Image: example of a polygon. 

Conclusion