Harnessing EUDR Compliance to Benefit Smallholder Cacao Farmers in Thailand

The impending European Union Deforestation Regulation (EUDR) has sparked debate, with contrasting perspectives on its potential repercussions. Opponents emphasize the financial burden and technological challenges smallholder farmers may face, while supporters advocate for its role in promoting sustainability and transparency in the supply chain.

Opponents claim the cost of geolocation and supply chain verification will hurt farmers. They argue the average smallholder farmer cannot afford the necessary technology to accomplish these goals and will lose EU market opportunities.

Supporters of EUDR advocate for sustainability and transparency in the supply chain. They maintain that regulation is essential to ensure that farms remain deforestation-free and that supply chains are traceable and verifiable. Moreover, they contend that EUDR presents an opportunity to uplift smallholder farmers and their communities, countering the indifference of certain industry segments.

At ECOSHIFT, we believe EUDR compliance presents a unique opportunity to empower smallholder farmers by building sustainable, verifiable supply chains. Our mission is to re-think sustainability for these farmers and leverage technology and industry expertise to enhance quality, increase productivity, and improve their livelihoods. Embracing compliance enables access to market opportunities while contributing to sustainable practices.

Helping Smallholder Cacao Farmers in Thailand Grow Sustainable Livelihoods

Thailand’s smallholder cacao farmers encounter numerous obstacles in the market, including inconsistent processes and fluctuating prices. ECOSHIFT offers a reliable solution to address these challenges, providing farmers with tools and resources for transparent supply chain verification and traceability.

We help smallholder cacao farmers improve growing and post-harvest techniques, boost output sustainably, and ensure EUDR compliance by providing free tools and resources for transparent end-to-end supply chain verification and traceability.

Our first-mile data integration for affiliated smallholder farms, in partnership with Orijin, includes polygon data and satellite-based deforestation assessments to comply with EUDR regulations.

Empowering Smallholder Farmers for a Sustainable Future

European Union Deforestation Regulation (EUDR) compliance is a prerequisite for certain products entering the EU market. Implementation will now come into effect December 30, 2025, for large and medium-sized operators and traders, and June 30, 2026 for micro and small enterprises.

EUDR compliance offers significant benefits for smallholders, including access to premium markets and risk mitigation against deforestation and environmental degradation. Non-compliance can result in fines of up to 4% of company turnover within the EU, restricted market access, confiscation, or suspension from public procurement or funding, serious business risks.

ECOSHIFT is committed to environmental stewardship and social responsibility in global supply chains. We promote ethical sourcing, protection of human rights, and preserving natural ecosystems in alignment with EUDR and United Nations Sustainable Development Goals (SDGs), ensuring products do not contribute to deforestation, habitat destruction, or human rights violations.

“Operators shall not place relevant products on the market or export them without prior submission of a due diligence statement.”

European Union Deforestation Regulation, Article 4

ECOSHIFT recognizes EUDR compliance as an opportunity to empower smallholder farmers who can gain access to a marketplace that values transparency, sustainability, and ethical practices.

ECOSHIFT helps smallholder farmers scale sustainable agricultural production and bridge the gap between farmers and markets. Our model fuses traditional farming methods, modern practices, and technology to encourage responsible growth. Training, expert guidance, and technological support equip farmers with the essential knowledge and tools they need to access the European market. As a result, they achieve better prices for their agricultural products and improve their standard of living.

Economic Prosperity Through EUDR Compliance

The ECOSHIFT model demonstrates that EUDR compliance need not burden smallholder farmers. By partnering with companies that purchase ECOSHIFT-backed products, farmers can access premium market opportunities and command higher prices.

Here’s how it works: companies that purchase ECOSHIFT-backed products from smallholder farmers pay a modest premium to ensure EUDR compliance, traceability, and transparency. This premium covers the costs associated with compliance and serves as a testament to the value placed on ethical sourcing and sustainable production practices.

Moreover, EUDR compliance opens doors to premium market opportunities, where discerning consumers are willing to pay a premium for products that adhere to standards. By aligning with EUDR requirements, smallholder cacao farmers can benefit from higher prices for their produce, thereby improving their income and livelihoods. The symbiotic relationship between compliance and economic empowerment underscores the transformative potential of EUDR for smallholder farmers.

The benefits of EUDR compliance:

• Market Access: EUDR compliance opens doors to the EU and beyond, where discerning consumers are willing to pay a premium for ethically sourced products. Smallholder farmers can command higher product prices, improving their income and livelihoods.

• Risk Mitigation: EUDR compliance helps mitigate risks associated with environmental degradation. Farmers safeguard their long-term viability and resilience in the face of global challenges by adopting sustainable farming practices and adhering to due diligence requirements.

• Capacity Building: Compliance with EUDR means implementing due diligence measures, including traceability systems, risk assessments, and stakeholder engagement.

• Partnerships and Collaboration: EUDR compliance fosters partnerships and collaboration across the cacao value chain, from farmers and cooperatives to buyers and researchers. By aligning with ethical chocolate brands and businesses committed to responsible sourcing, smallholder farmers can amplify the impact of their compliance efforts, creating synergies that benefit all stakeholders.

EUDR as a Tool for Empowerment

EUDR compliance has been occasionally misconstrued as a barrier to entry for smallholder farmers, particularly in developing countries. However, closer examination suggests that EUDR can be a shield against exploitation and a catalyst for sustainable development.

One common misconception is that EUDR compliance imposes financial burdens on smallholder farmers, rendering them economically vulnerable. The ECOSHIFT model demonstrates that compliance can be achieved at zero cost to farmers through strategic partnerships and innovative solutions. By leveraging technology and expert guidance, smallholder farmers can comply without compromising their financial stability.

Our experience enrolling smallholder cacao farmers in Thailand and specialty producers in France demonstrate that flexibility and adaptability are integral to achieving compliance. We empower farmers to implement sustainable practices that align with EUDR standards through customized solutions while respecting their cultural and contextual nuances.

Partnerships for Impact

Collaboration is key to our approach, with partnerships established across the agricultural value chain. Through alliances with ethical brands and corporations committed to responsible sourcing, we amplify the positive impact of EUDR compliance, positively impacting the lives of smallholder farmers.

With our innovative platform, we're empowering farmers with:

1. Traceability and Transparency: It is essential to track the journey of produce from farm to export to ensure compliance with regulations. Our embedded map feature lets you showcase your product's journey from raw materials to consumers' hands.

2. Sustainable Farming Practices: Promoting eco-friendly methods such as agroforestry and conservation agriculture is necessary to preserve the environment.

3. Compliance Management: Facilitating certification processes and ensuring adherence to standards is crucial for the success of the farming industry.

4. Market Access and Equitable Transactions: Providing insights into EU market requirements and connecting farmers with buyers will help farmers access markets and achieve equitable transactions.

5. Collaboration with Researchers: Working with universities, NGOs like CIRAD and UNFAO, and industry associations to promote better farm practices and combat deforestation is essential for the industry's growth and sustainability.

Cultivating a Sustainable Future

At ECOSHIFT, we are committed to championing smallholder farmers and promoting sustainable livelihoods.  By embracing transparency, sustainability, and ethical production, we unlock new avenues for growth, resilience, and prosperity where every cacao bean tells a story.

ECOSHIFT Thailand, produces premium, sustainably grown, and ethical cocoa using a comprehensive model that benefits farmers, chocolatiers, and the environment.

Learn more about ECOSHIFT and join us on this journey toward sustainable livelihoods for smallholder cacao farmers in Thailand, Congo, and Ghana. Together, we can make a difference that transcends borders and transforms lives.

For more information, contact Linda Chevrier at info@ecoshift.io

by Tim Morch, Freelance Writer

www.timmorch.com