Implementing EUDR (European Union Deforestation Regulation) in agricultural fields is of vital importance for all types of businesses working in the coffee and cocoa sector. This regulation aims to stop global deforestation by regulating products from deforested land.
Recognising the benefits and problems of adopting the EUDR Solution in production fields is a key action for Coolx. If you are interested in learning more about how it can affect your business and strategies to build on its strengths, read on.
EUDR implementing opportunities
In December 2024, medium and large companies will be required to implement the new obligations described in the EUDR. For small businesses, implementation may be delayed until 30 June 2025. However, despite the challenges set by the European Union, the implementation of the EUDR offers certain opportunities for business.
- Gain a competitive advantage: complying with the EUDR solution improves the image of the business vis-à-vis competitors and partners, standing out as an environmentally committed entity.
- Access new markets: many regions and consumers are aware of the importance of being a sustainable business, so being EUDR compliant can generate more revenue and a presence in different markets.
- Innovation and efficiency: the need to adapt processes and supply chains drives innovation, making the company more efficient and competitive.
- Risk reduction: complying with regulations helps mitigate legal and financial risks, ensuring the long-term stability of the company.
More than 30,000 Spanish companies will have to collect relevant information to comply with the EUDR by the end of the year
Common problems in implementing EUDR
Coffee businesses based in EU countries are obliged to work with their suppliers in producing countries to comply with the regulation. In addition, all companies must prove that the product sold has no link to deforestation from December 2020. If they fail to comply, they face fines of up to 4% of their turnover and seizure of the coffee and their revenues.
Although implementing EUDR caused some resistance in its initial stage, it is an opportunity to make changes that the industry needs. Although the benefits outweigh the problems, this solution can present challenges for companies. These include:
- Additional costs: adapting processes to comply with the regulation can lead to significant costs, especially for SMEs.
- Lack of information: there are companies that do not have sufficient data on the provenance of their products, making compliance with the EUDR solution more difficult.
- Administrative complexity: Bureaucracy and the need for documentation can be overwhelming, even requiring additional resources to manage.
- Resistance to change: changes in procedures and in the supply chain can generate fear among employees and business partners.
Strategies for overcoming problems in EUDR implementation
Coolx has been involved in projects for coffee importing, exporting and roasting businesses in both EU and producing countries. To deal with the problems arising from implementing EUDR, coffee businesses need to adopt certain strategies:
- Investing in technology: employing technological tools to trace the provenance of products can greatly simplify the compliance process.
- Staff training: training your employees on the importance of the EUDR and how to comply with its requirements can reduce resistance to change.
- Collaboration with suppliers: establish closer relationships with suppliers to ensure transparency and traceability of products.
- External advice: engaging specialist sustainability and regulatory consultancy services can make it easier to adapt to the EUDR – Coolx could be your solution!
Coolx facilitates processes in activating EUDR solution
Although there is no exact theory on how to implement EUDR successfully, at Coolx we try to personalise each case to the client. Therefore, we work in an individualised way based on your reality according to your background and objective.
The steps we take at Coolx to help your company implement the EUDR are as follows:
- Study the regulations of the country where your business is located according to its role as importer, exporter and roaster.
- Assess the company and its supply chain against the required criteria.
- Analyse and evaluate the data collected. From basic information on on-farm deforestation to legal aspects.
- Reduce risks through tailored mitigation strategies.
- Submit the Due Diligence Declaration to the European Commission.
At Coolx, we are committed to accompanying you on the road to more sustainable and responsible production. If you want to evolve your business before it is too late, do not hesitate to contact us through our website or social networks.
