The EUDR (EU Deforestation Regulation) mandates the disclosure of geodata regarding the origin of raw materials during import into the EU. A crucial prerequisite is the entity placing the goods on the market possessing knowledge and verifiable information about the exact origins.
In many regions, raw materials often originate from small-scale farming operations, particularly in furniture production based on agricultural by-products like mango wood, acacia, sheesham (Indian Rosewood/Dalbergia sissoo), or rubberwood. Typically, these materials are sold in local markets and subsequently resold by traders to processing facilities. Documenting all small-scale farming operations and obtaining geodata from them to pass on to the subsequent supply chain proves to be a technologically and organizationally challenging task, at least in the medium term.
What potential solutions emerge from this situation, especially considering the effective date of the EUDR on December 30, 2024?
The regulation highlights risk-mitigating measures, including "supporting the compliance with this Regulation of their suppliers, in particular smallholders, through capacity building and investments." These measures may involve supporting the suppliers of market participants, particularly small farmers, in complying with the regulation through capacity-building and investments.
Recognition of Small Farmers' Role
The regulation explicitly emphasizes the recognition and reinforcement of the role and rights of small farmers and micro-enterprises in producing countries. Furthermore, it suggests that "Union and the Member States should work towards partnerships with producer countries" that address the needs and challenges, especially those faced by small farmers on-site.
The Role of Supplycanvas and Future Outlook
While supplycanvas offers a straightforward and free solution for suppliers, the sharing of geodata necessitates a fundamental shift in local business practices and traditions. We harbor doubts about the feasibility of achieving this within the remaining timeframe.
Urgency of Partner Programs
Particularly concerning the mentioned wood types, the partner programs outlined in the regulation, regardless of their specific form, are undeniably crucial and urgently needed to ensure that small enterprises in producing countries are not deprived of market access.