Innovation in traceability: An opportunity for Colombian coffee and palm oil in light of the EUDR

Wageningen University and Resilience have developed an innovative traceability proposal aligned with the European Union Deforestation Regulation (EUDR). This initiative, supported by The Embassy of the Kingdom of the Netherlands in Colombia, aims to assist Colombian coffee and palm oil producers in meeting European requirements, avoiding market access barriers, and promoting sustainable and efficient practices. The project analyzes the specific factors and challenges Colombia faces and proposes solutions that balance the realities of the country’s productive sector with European standards. Tracing Sustanibility PDF

The EUDR: Raising the Bar for Sustainability in Global Trade

Sustainability and the fight against deforestation have become priorities in international trade, and the European Union has taken a significant step in this direction with the EUDR. This regulation requires companies to conduct due diligence on the origin of products such as coffee and palm oil, providing geographic locations of production areas to minimize the risk of importing goods linked to deforestation.

Supporting Colombia’s Coffee and Palm Oil Sectors

In this context, this traceability initiative looks to support key actors in Colombia’s coffee and palm oil sectors. The objective is to recommend technologies and processes that ensure the sustainability and traceability of these products, facilitating their access to the European market under the EUDR standards.

Why Traceability and Transparency Matter

Traceability is crucial in this process, as it involves tracking production from its origin to the final consumer, documenting its history, location, owners, and modifications throughout the supply chain. Additionally, transparency complements this process by ensuring that essential information—such as land use and monitoring data—is accessible to all stakeholders.

Challenges for Small Producers in Colombia

However, implementing this regulation may pose a challenge for small Colombian producers, as there is no clear, standardized, and accessible guide to traceability. Furthermore, access to appropriate technologies is not available to everyone, and in many cases, meeting these requirements and obtaining the necessary certifications involves high financial and logistical costs.

The complexity of coffee and palm oil supply chains, which involve multiple actors and logistical routes, further complicates product tracking. Additionally, informality in land tenure and a lack of clarity in property ownership can hinder proper verification of crop origins, compromising compliance with European regulations. Coffee sector in Colombia PDF

A Strategic Sector Under Pressure

Coffee and palm oil are among the most exported products to the European Union, and over half a million families depend on coffee production for their livelihoods. Therefore, this regulation will significantly impact small producers. Given that Europe is not the primary export destination, Colombia might choose to prioritize other markets instead of adapting to the EUDR. To overcome these challenges, fostering collaboration among all stakeholders, aligning Colombian and European regulations, and facilitating access to technological solutions adapted to the country’s reality are essential. Palm oil sector in Colombia PDF

Technological Solutions for EUDR Compliance

To ensure compliance with the EUDR in coffee and palm oil production in Colombia, a robust traceability system based on a combination of technologies is required. Tools such as geospatial data, satellite imagery, and IoT devices can help identify deforestation-free land and verify the legality of land use.

Additionally, blockchain technology can track product origins and verify compliance with sustainability standards, making it another crucial tool for ensuring transparency. Finally, improving connectivity infrastructure in rural areas is essential to support the technologies required for regulatory compliance. However, given that the cost of technological adoption may pose a barrier for most producers, financing mechanisms that facilitate access to these solutions are recommended. Initiatives such as blended finance and data-driven microcredits can help cover implementation and training costs for these technologies.

Turning Compliance into a Competitive Advantage

The implementation of the EUDR represents both a challenge and an opportunity for Colombia’s productive sector. While traceability and sustainability requirements may create barriers for small producers, adopting innovative technologies and aligning national regulations with European standards can facilitate compliance and strengthen the country’s competitiveness in international markets.

The key to success lies in cooperation between the public, private, and academic sectors, as well as in the development of accessible financing mechanisms that enable the integration of technological solutions throughout the entire production chain. With a strategic and inclusive approach, Colombia can not only ensure its coffee and palm oil access to the European market but also position itself as a global leader in sustainable production and traceability.

More information

If you would like to know more or want to get in touch with the Agricultural & Biodiversity team, please contact us on bog-lvvn@minbuza.nl (for Colombia and Ecuador) or lim-lvvn@minbuza.nl (for Peru).

For more general information, you can visit agroberichtenbuitenland.nl