Small-scale producers in South America navigate new EU rules on deforestation

The adoption of traceability systems in livestock ensures that beef does not come from deforested areas in the Amazon. Credit: JBS Fund for the Amazon/Celio Cavalcante Filho

Facing compliance challenges with the European Union's Deforestation Regulation (EUDR), a new initiative is working to ensure a fair and inclusive transition for small-scale producers and other actors in agricultural production chains. Solidaridad is leading the Inclusive Regional Dialogues on the EUDR project, which will run until May 2026, and focus on soybean and livestock production in Argentina, Brazil, Paraguay and Uruguay.

In each of the countries, Solidaridad will organize dialogues and to discuss traceability and sustainability in the soybean and livestock value chains, paying special attention to small-scale farmers. Then the results from the national level dialogues will be integrated into future regional meetings. The initiative's goal is to promote a broad and inclusive understanding of the needs and challenges these farmers face.

The project has partnered with organizations like Proforest and the Tropical Forest Alliance, who as part of the team will help to promote multi-stakeholder dialogues that address compliance adjustments, while making sure to include small-scale producers and rural workers in the process.

To encourage engagement across the four countries, there are plans for more than twenty in-person, virtual, and hybrid meetings per year. In Brazil alone, the goal is to organize eight remote sessions and up to two in-person meetings each year.

Over the past two years, the European Union has worked to develop more robust regulations to oblige companies to consider aspects of sustainability in their operations. These regulations directly impact micro, small, and medium-sized enterprises (MSMEs), farmers, and workers in countries where Solidaridad operates, and where it works to preserve vulnerable biomes like the Cerrado, the Amazon and the Gran Chaco.

The EUDR-a binding law for all EU member states that aims to reduce deforestation in remaining forests in Latin America, Africa, and Asia-will come into force on December 30 of 2024. Consequently, companies and stakeholders in both producer countries and Europe must understand how to adapt to the new EUDR regulations.

Rodrigo Castro, the Solidaridad Country Manager in Brazil, is leading the Inclusive Regional Dialogues on the EUDR project. He says that, "The biggest challenge is to bring small producers into the discussion about the EUDR, its potential market implications, and opportunities for adjustments. Our main concern globally is to ensure a fair and inclusive transition in the face of this new legislation, avoiding further exclusion of small producers."

Protection of Ecosystems

The EUDR applies to several commodities that may be linked to the suppression of native vegetation areas. These include cocoa, coffee, palm oil, rubber, soybeans, beef, wood and their derivatives. Under the EUDR, the production of these commodities must meet criteria which confirms that they do not participate in deforestation activities-a crucial factor for promoting responsible production practices that protect global ecosystems.

To comply with the EUDR, Castro considered two critical points: deforestation-free production and compliance with the country's legislation. In the case of Brazil, food production must comply with the Forest Code and meet labor legislation.

Castro also notes that both the soy and livestock sectors are concerned about the potential impacts of the EUDR on exports to European countries. According to him, the soybean chain is conducting various export pilots to the EU to test whether it is possible to export without the risk of deforestation. Meanwhile, the livestock sector is investing in meat traceability systems to prove that it is deforestation-free and compliant with Brazilian environmental legislation.

"The project gives us the opportunity to gather the viewpoints of all actors in the national livestock sector and systematize them so that we can convey our message about what we are doing. This way, we can maintain meat exports to Europe and understand the main challenges for implementing the regulation among Brazilian producers, especially small-scale ones," explains Paulo Lima, Solidaridad's Amazon Programme Manager inBrazil.

Due Diligence and Compliance

For commodities to be exported to the EU, they must be accompanied by a Due Diligence Statement (DDS from the importer. This must be presented by importers to ensure that their products do not contribute to deforestation and that their production complies with the environmental and social laws of the country of origin.

The DDS guarantees that the products meet all necessary legal and environmental criteria. Additionally, the process of obtaining the statement requires the collection of detailed information about the supply chain, including the geo-referencing of production sites and the risk assessment related to deforestation and compliance with national standards.

Traceability, allowing commodities to be tracked from origin to final consumer, is another essential tool to ensure compliance with the EUDR. Reliable monitoring of commodities throughout the supply chain helps to prevent the mixing of compliant and non-compliant products and reinforces European consumer confidence. For farms with areas larger than four hectares, the regulation also requires the collection of polygon maps, which are detailed measurements of farm boundaries.

Additionally, the EUDR mentions land use rights, environmental protection, labor rights, and third-party rights. The legislation emphasizes the importance of free, prior, and informed consent for agricultural production on indigenous lands to ensure that those territories and rights are respected. "Complying with the law means ensuring that all production operations are aligned with existing regulations," says Rodrigo Castro.

The SAFE Project in Action

Supported by the European Union and the governments of Germany and the Netherlands, the Inclusive Regional Dialogues on the EUDR initiative is part of the GIZSustainable Agriculture for Forest Ecosystems (SAFE) project.

SAFE contributes to the inclusive transformation towards deforestation-free, sustainable, and legal production chains of several commodities: palm oil, beef, soy, coffee, cocoa, rubber, and wood. SAFE works on the "farmers, food, and forests" triad, seeking sustainable agricultural production and improving the livelihoods of small farmers while protecting forest frontiers.

The project is implemented in Brazil, Burundi, Cameroon, the Democratic Republic of Congo, Ecuador, Indonesia, Peru, Vietnam, Uganda and Zambia, as well as on the regional and global levels. It provides technical assistance, strengthens capacities, scales up traceability systems, supports partnerships, and promotes exchange, collaboration, and learning among various actors. The programme also hosts the secretariat of the new Team Europe Initiative on Deforestation-free Value Chains.

SAFE is co-financed by the European Union, the Dutch Ministry of Foreign Affairs, and the German Ministry for Economic Cooperation and Development and implemented by GIZ.

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