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Navigating EUDR Compliance within the Coffee Industry

Slide deck from the presentation 'Digitising Smallholder Farmer Value Chains: Empowering Cooperatives for Global Sustainability', given at the British Coffee Association webinar. The slides discuss strategies for EUDR compliance and digital transformation in the coffee sector, with a focus on supporting smallholder cooperatives.

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BCA Deforestation Webinar Series:
…in Conversation with AgUnity
Paul Rooke
Executive Director, British Coffee Association
info@britishcoffeeassociation.org
Peter Horsten
Chief Growth Officer, AgUnity
peter.horsten@agunity.com
DIGITISING SMALLHOLDER FARMER VALUE CHAINS:
EMPOWERING COOPERATIVES FOR GLOBAL SUSTAINABILITY
Navigating EUDR Compliance within the Coffee Industry
A FEW WORDS ABOUT AGUNITY AND ME
Peter Horsten
Chief Growth Officer
peter.Horsten@agunity.com
https://agunity.com
EU DEFORESTATION REGULATION:
AN OVERVIEW
•Intends to promote transparency, sustainability, and
responsible sourcing in global supply chains
•Prevents products linked to deforestation from entering the
EU market
•Companies required to conduct due diligence
•Applies to key commodities like cocoa, coffee, palm oil,
rubber, soy and wood
EUDR FOR
SMALLHOLDER
FARMERS
Source: European Commission, Directorate-General for Environment, EU
Deforestation Regulation – An opportunity for smallholder, Publications
Office of the European Union,
2023, https://data.europa.eu/doi/10.2779/9252
QUESTION TO THE EU
•It takes 3-4 years for the newly
planted coffee trees to bear fruit
•If planted in 2021, it bears fruit the
earliest in 2024/2025
•Therefore, all currently harvested
coffee should be “safe”, isn’t it?
Photo by Christian Joudrey on Unsplash

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Navigating EUDR Compliance within the Coffee Industry

  • 1. BCA Deforestation Webinar Series: …in Conversation with AgUnity Paul Rooke Executive Director, British Coffee Association info@britishcoffeeassociation.org Peter Horsten Chief Growth Officer, AgUnity peter.horsten@agunity.com
  • 2. DIGITISING SMALLHOLDER FARMER VALUE CHAINS: EMPOWERING COOPERATIVES FOR GLOBAL SUSTAINABILITY Navigating EUDR Compliance within the Coffee Industry
  • 3. A FEW WORDS ABOUT AGUNITY AND ME Peter Horsten Chief Growth Officer peter.Horsten@agunity.com https://agunity.com
  • 4. EU DEFORESTATION REGULATION: AN OVERVIEW •Intends to promote transparency, sustainability, and responsible sourcing in global supply chains •Prevents products linked to deforestation from entering the EU market •Companies required to conduct due diligence •Applies to key commodities like cocoa, coffee, palm oil, rubber, soy and wood
  • 5. EUDR FOR SMALLHOLDER FARMERS Source: European Commission, Directorate-General for Environment, EU Deforestation Regulation – An opportunity for smallholder, Publications Office of the European Union, 2023, https://data.europa.eu/doi/10.2779/9252
  • 6. QUESTION TO THE EU •It takes 3-4 years for the newly planted coffee trees to bear fruit •If planted in 2021, it bears fruit the earliest in 2024/2025 •Therefore, all currently harvested coffee should be “safe”, isn’t it? Photo by Christian Joudrey on Unsplash
  • 7. SERIOUS PROMISES BY THE EU HOW REALISTIC ARE THEY? Source: European Commission, Directorate-General for Environment, EU Deforestation Regulation – An opportunity for smallholder, Publications Office of the European Union, 2023, https://data.europa.eu/doi/10.2779/9252
  • 9. MARKET REACTION TO EUDR AND EMERGING CHALLENGES •Mixed reaction in the market, especially among coffee producers and traders •Concerns include the complexity of compliance, especially in tracing products back to their origins •Smallholder farmers, often lacking resources and infrastructure, face significant challenges in meeting these new requirements •Some traders are hesitant to engage with smallholders due to fears of non- compliance and potential legal repercussions •The need for digital solutions and support systems for compliance is more crucial than ever
  • 10. The current level of digitisation in cooperatives is insufficient to meet these demands, risking potential income loss for farmers THE CONCERNS ARE VALID
  • 11. AND THE BAR WILL BE RAISED ONLY HIGHER Photo by Włodzimierz Jaworski on Unsplash
  • 12. EUDR: JUST THE BEGINNING OF THE GREEN DEAL'S CHALLENGES • EUDR represents the first major regulatory hurdle under the EU Green Deal. • Like a pole vaulter overcoming one bar, we must prepare for higher challenges ahead. • Upcoming regulations like the CSDDD will continue to raise the bar for sustainability and corporate responsibility. • This evolving landscape requires solutions that not only address current needs but are adaptable for future regulations. • Our approach must be dynamic and forward-looking, ensuring long-term compliance and sustainability.
  • 14. HOW TO SOLVE THIS CHALLENGE?
  • 15. UNDERSTANDING THE COFFEE VALUE CHAIN COMPLEXITY
  • 16. AGUNITY’S DIGITAL PLATFORM: BRIDGING GAPS, ENSURING COMPLIANCE •Top-down Digitisation •Comprehensive Digital Registry •Market Demand Insights •Traceability and Transparency
  • 17. AGUNITY’S DIGITAL PLATFORM: BRIDGING GAPS, ENSURING COMPLIANCE •Top-down Digitisation: Initiating digital transformation at the cooperative level to foster an information-driven agricultural community •Comprehensive Digital Registry: Establishing a robust digital profile for each cooperative member to meet compliance requirements and enhance traceability •Market Demand Insights: Providing cooperatives and farmers with actionable market demand data to make informed decisions on crop selection and farming practices •Traceability and Transparency: Enabling traceability projects to align with EU import legislation, bolstering buyer confidence and ensuring market access
  • 18. AGUNITY: STREAMLINING EUDR COMPLIANCE Our suite of tools digitise the smallholder agricultural value chains, resulting in increased efficiency, transparency, trust and opportunity: • Tailored for smallholder cooperatives and local exporters • Simplifies EUDR compliance with GPS onboarding and data capture • Data sovereignty for cooperatives • Supports scalable, sustainable coffee value chains • Digital data exchange with buyers
  • 19. THE CO-OP MANAGER: EMPOWERING COOPERATIVES •The AgUnity Co-op Manager offers a web-based solution that digitises, monitors, and scales cooperative activities •Co-ops can support members with financial services, education, access to markets, supplies, and enhanced communication
  • 21. FIELD APPS: SUPPORTING FIELD AGENTS AND FARMERS The Field Apps connect field agents, farmers and fishers to: •Resources •Transactions •Learning, and •Proof of income for financial inclusion
  • 22. CROPSLIST: CREATING A MORE EFFICIENT MARKETPLACE Cropslist empowers buyers and suppliers: A platform that prioritises: •Quality •Traceability, and •Sustainability
  • 23. TRACINGLY: EMPOWERING TRANSPARENCY Tracingly enables: •Secure tracking of products across the supply chain, •Providing data and reports to all stakeholders TRACK TRACE
  • 24. A STEP-BY-STEP APPROACH TO COMPLIANCE •Create digital organisation structure •Upload members and historical data •Gather missing GPS locations •Collect additional information if needed through field agents •Digitise value chain flow •Digitise farmers in the upcoming years
  • 25. VERIFY COMPLIANCE OF FARMERS (SOURCE: HTTPS://WWW.GLOBALFORESTWATCH.ORG/)
  • 26. COOPERATIVES MUST UNDERSTAND THEY HAVE TO KEEP NON-COMPLIANT COFFEE SEPARATE!
  • 29. CASE STUDY: TRANSFORMING COFFEE VALUE CHAINS WITH OCFCU Implementing the AgUnity Co-op Manager at Oromia Farmers' Cooperative Union's 560,000 farmers Project supported by International Trade Center, under The Netherlands Trust Fund V
  • 30. QUOTE FROM OCFCU’S GM “We are extremely grateful for the support and dedication that AgUnity has shown towards our cooperative over the years. Their expertise in organising our information structure and guiding us through our digital transformation journey has been invaluable. Recently, they have started digitising our member base, in a joint project with the International Trade Centre. This project is going very well, and it should enable us to be compliant with EUDR in time." Dejene Dadi, General Manager, Oromia Coffee Farmers Cooperative Union (OCFCU)
  • 31. BEYOND COMPLIANCE: DRIVING DIGITAL TRANSFORMATION •Capacity building: Equipping cooperatives with digital tools for enhanced decision-making •Agri training: Accessible guidance to improve farming practices leading to increased crop yield •Satellite-based advice: Leveraging space tech for precision agriculture and environmental stewardship •Financial inclusion: Integrating digital wallets and financial services to foster economic resilience
  • 32. A GLOBAL CALL TO ACTION •Our combined challenge: Onboarding >50 million farmer records and GPS locations •Requires collective action and support •We seek implementation partners and financial backers •Your involvement can help drive a digital revolution in agriculture, ensuring EU compliance and a sustainable future for all
  • 33. OPEN DISCUSSION AND QUESTIONS