Oct 284 min read

KOLTIVA Enhances Coffee Supply Chain Inclusivity and Compliance with EUDR

Coffee is a major global commodity with 177 million 60-kilogram bags produced worldwide in 2023 (International Coffee Organization: 2023). In Europe, the largest coffee market, 31% of global coffee production was consumed in 2023 (ICO: 2023; Statista: 2023). Despite the great demand for coffee, according to the European Parliament’s impact assessment, coffee accounted for 7% of the products imported by the EU from deforested land (European Parliament: 2023).  

As a response, to mitigate further deforestation due to the trend, the EU enforces stringent sustainability standards on imported seven key commodities, including coffee, to the continent with the EU Deforestation Regulation (EUDR). By the end of the year 2024, the regulation will impose stringent standards for sustainability, transparency, and fairness throughout the coffee supply chain, mandating that at every stage, from coffee cultivation to the final product, adheres to strict criteria for environmental preservation, ethical sourcing, and social responsibility. 

However, the challenge of implementing sustainable practices in coffee production is substantial, with approximately 70-80% of global coffee production coming from smallholder producers cultivating 5 hectares or less, accounting for 95% of the 12.5 million coffee farms worldwide. (IISD: 2022; ECF: 2022). The smallholder producers often lack the resources, infrastructure, and access to information necessary to comply with stringent regulations, making the transition to sustainable practices both complex and costly for the majority of the global coffee supply chain. 

The journey of coffee from seed to table involves a complex process with multiple stages involving producers, processors, exporters/importers, roasters, and retailers (Researchgate: 2023). The numerous intermediaries make plot-level traceability challenging as the geolocation and contact details information might not be available for small plantations (ERPS: 2023). These geolocation coordinates must be included in the due diligence statements to demonstrate no deforestation link to the product. 

Beyond Traceability Talks Session 2 -Koltiva.com

Mitigating all those challenges requires a comprehensive traceability and monitoring system approach, involving collaborative effort from all supply chain actors. As mandated by the EU, operators or traders will be required to submit the due diligence statement before entering or exporting from the EU which requires mapping the entire supply chain from the upstream to downstream to achieve comprehensive transparent and traceable transaction.  

EUDR Coffee Compliance: KOLTIVA’s Innovative Solutions for a Sustainable Coffee Future

In response to regulatory requirements, KOLTIVA goes beyond traceability by expanding its solutions through a modular approach which includes in KoltiTrace, a robust traceability platform, enabling Supply Chain Mapping and Risk Assessment for the processors. Additionally, an extension service, KoltiSkills, provides solutions for processors and manufacturers needing more field staff or third-party assistance. These services include sustainable supply chain mapping and verification, transactional traceability support, land legality and certification support, and risk mitigation services in the field.  

The latest addition to KOLTIVA's modular approach for EUDR solutions is KoltiVerify. It integrates the entire supply chain in one platform and verifies supplier or processor data through API integration from any ERP system used by KOLTIVA’s clients and data injection. These solutions further strengthen KOLTIVA’s commitment to addressing the traceability and compliance challenges faced by the coffee industry, particularly in reducing the risk of excluding smallholder producers. Moreover, in the cases of non-compliance, KOLTIVA can support its clients to design and implement field-level interventions to address the issues identified. 

Since 2013, KOLTIVA has emerged as a leading agritech provider, supporting companies of all sizes and from all six continents, to implement and achieve their sustainability goals, transition to traceable sourcing, and have a positive impact in the communities and ecosystems from which their commodities are sourced. Managing 58 commodities in 65 countries, to date, KOLTIVA has mapped and verified over 361,728 coffee producers and assessed over 605,963 hectares of coffee farmland. As the EU Authorized Representative, KOLTIVA will assist businesses in submitting the Due Diligence Statement, ensuring compliance with the EUDR standards. 

Resource

Writer: Vega Welingutami, Sr. Public Relations & Event Officer

Editor: Daniel Prasetyo, Head of Public Relations & Corporate Communications

About Writer:

Vega Welingutami is a seasoned Public Relations & Event expert with a strong background in the tech industry, particularly in AI companies, Logistics, Transportation, and Entertainment sectors. With extensive experience in creating impactful event conferences, Vega excels in engaging stakeholders and media to maximize the reach and success of each event. Vega's proficiency in public relations plays a pivotal role in her media approach at Koltiva. Vega's expertise extends to crafting comprehensive media strategies to generate extensive coverage and buzz around events. By leveraging her deep understanding of the media landscape, she develops tailored communication plans, coordinates press releases, and facilitates media engagement before, during, and after events. This strategic approach helps maximize exposure and generate positive brand associations for all involved parties.