Don’t know what EUDR is and how it can influence your coffee business? Coolx can help you find the solution to your question. In this article we show you how this European regulation can change the way roasters, exporters and importers of coffee and cocoa, among other products, operate.
Understanding what the EUDR is and how it affects each type of business is key to recognising the differences. In addition, it is essential to take advantage of market opportunities to become more environmentally conscious. If you want to understand what EUDR is and how this regulation is adapted to your business, read on!
What is the EUDR, European regulation to combat deforestation?
The EUDR is a regulation adopted by the European Union that aims to reduce forest degradation and deforestation worldwide. This European regulation to combat deforestation obliges companies to ensure that both coffee and cocoa production do not contribute to forest deforestation.
Companies engaged in this activity must demonstrate that their products comply with the sustainability standards set by the European Union. For this reason, Coolx develops customised studies and risk analyses to ensure that the entire supply chain is sustainable.
EUDR will be applicable, as of 30 December 2024, for large companies
Impact of the EUDR on coffee importers
Coffee importers in the EU must verify that products comply with the EUDR. Their activities are:
- Monitor the supply chain and have sufficient and verifiable information that the coffee does not contribute to deforestation.
- Request EUDR documentation and data from exporters and other suppliers
- Assess risks associated with deforestation and sustainability.
- Transparency and traceability: maintain accurate records on production and origin of products.
- Regulatory compliance: ensuring that the products they buy have sufficient information and a low or negligible level of risk to meet legislative requirements.
All these measures promote responsible trade for importers. In addition, they can differentiate themselves from the competition by offering products that comply with environmental standards. In this sense, compliance and knowledge of the EUDR strengthens business relationships with customers and partners who prioritise sustainability..
Impact of the EUDR on coffee exporters
Coffee exporters are also affected by the EUDR. These companies must ensure that the coffee and cocoa they sell does not come from deforested and overexploited forests. The actions they must take and propose are:
- Implementation of monitoring systems to verify the origin of coffee.
- Collaboration with farmers to ensure sustainable cultivation practices.
- Develop additional due diligence processes to meet EU requirements.
- Have a comprehensive understanding of the EUDR: know how it affects your suppliers and your company.
- Demands from European customers: prepare and collect all information based on EUDR standards.
Establishing these objectives can open up new business opportunities in Europe, in exchange for an adaptation of their operations and commercial agreements. However, Brazil was the country that exported the most coffee to other countries, worth approximately $7.351 billion. Coffee exporters need to invest in technologies to verify the origin of coffee.
How does the EUDR affect coffee roasters?
The EUDR for coffee roasters involves a number of changes in the procurement of raw materials. Thus, these businesses must ensure that their suppliers comply with sustainability and deforestation laws. They should pay particular attention to:
- Traceability and transparency: having evidence that the coffee they market does not come from deforested areas after 2020. Verification of certified suppliers that comply with EUDR requirements.
- Due diligence: establish their own systems to analyse the risks of non-compliance in their supply chains.
- Sourcing: select farms at source that meet EUDR criteria and be able to assess them against these criteria.
- Supplier analysis: to understand what actions they are taking and how far along they are on the road to deforestation-free.
- Have a comprehensive understanding of what EUDR is: to recognise how it affects your suppliers and your company.
In addition, these companies can position themselves as leaders in the sustainable coffee industry, attract customers who value sustainability and be transparent in the supply chain. All this, despite increased operating costs.
Coolx implementation strategies and support for coffee businesses
At Coolx we can answer what EUDR is, as the EUDR solution is to ensure that your coffee is aligned with the EUDR and will not have any problems when entering the European market. The solutions we offer to comply with this regulation include personalised advice; analysing your suppliers and their farms and proposing solutions to make them EUDR compliant and ongoing support to keep you up to date with the latest changes in the regulation and best practice in the sector.
Having a company to help you comply with EUDR requirements is an opportunity to position your business as a leader in sustainability. In addition, investing in it generates long-term benefits, such as reduced risks associated with deforestation and access to new markets.
If you need more information or help to implement these strategies, do not hesitate to contact us! Leave your comments here so that we can continue to improve together.
