Key Challenges in Implementing Traceability for Smallholders
A Story from the Field: Chanwit Khotchomphoo’s Work in Thailand
Building Trust with Smallholders: How Chanwit Engages Smallholders and Local Leaders
The Role of Comprehensive Supply Chain Mapping & Verification in EUDR Compliance
Your Trusted Partner for EUDR Compliance in the Rubber Sector
Executive Summary
Smallholders face critical challenges in EUDR traceability, including fragmented supply chains, limited access to technology and infrastructure, and a lack of awareness about compliance requirements. These issues hinder effective data collection and monitoring, creating barriers to achieving EUDR compliance.
Through the leadership of Chanwit Khotchomphoo, our Cluster Leader in Thailand, KOLTIVA is overcoming these obstacles by building trust and fostering collaboration with smallholders. This engagement not only helps smallholders navigate EUDR compliance but also drives long-term sustainability in the rubber supply chain.
KOLTIVA’s tailored EUDR compliance solutions—KoltiTrace, KoltiSkills, and KoltiVerify—provide a comprehensive, integrated approach. From robust digital tools to boots-on-the-ground support, these solutions are designed to empower smallholders, streamline compliance processes, and ensure a sustainable future for the rubber industry.
The EU Deforestation Regulation (EUDR) is set to transform global trade, requiring businesses to ensure their products are deforestation-free before entering the European market. More than a commitment to environmental protection, EUDR fosters transparency and trust throughout supply chains, establishing a healthier ecosystem and giving compliant products a competitive edge, making it beneficial for both businesses and smallholder producers. Compliance with EUDR begins with a rigorous data collection process involving geolocation data, supplier information, and evidence of deforestation-free sourcing post-December 31, 2020, alongside proof of legal production and trade in the origin country.
Achieving compliance with the EUDR involves several steps, beginning with the critical task of data collection. This process entails gathering essential information such as geolocation data, supplier details, and proof that products are not sourced from land deforested after December 31, 2020, alongside documentation that confirms legal production and trade in the country of origin.
Engaging smallholders is one of the most fundamental yet challenging aspect of achieving compliance with the EUDR. Although the EUDR promotes sustainable practices, a significant concern arises regarding how smallholders—often constrained by limited resources, funding, and capacity—can comply with these requirements. Their involvement is essential to ensure traceability across complex, multi-tiered supply chains. However, many smallholders remain unaware of the importance of traceability, further complicating the verification of deforestation-free sourcing.
Key Challenges in Implementing Traceability for Smallholders
Addressing the barriers in smallholder traceability, from fragmented supply chains to infrastructure limitations and data sharing challenges, here are the key challenges to consider when implementing traceability for smallholders:
Fragmented and Dynamic Supply Chains
The complexity of fragmented and multi-tiered supply chains presents significant challenges. With supplier relationships constantly evolving, it becomes increasingly difficult to maintain consistent communication and ensure traceability across the entire network.
Smallholders Awareness
Many smallholders lack adequate knowledge and understanding of traceability and compliance requirements. This gap in awareness can hinder their ability to participate effectively in traceability initiatives, making it essential to provide education and resources to bridge this divide.
Infrastructure and Logistics
Farms are often situated in remote and dispersed areas, complicating data collection efforts. Additionally, poor connectivity and signal issues can limit real-time data synchronization, creating obstacles in tracking and monitoring compliance effectively.
Incentives and Benefits
To motivate participation in traceability systems, there is a pressing need for fair incentive mechanisms. These incentives should appeal to all stakeholders, from producers to buyers, ensuring that everyone recognizes the value of maintaining traceability and compliance.
Data Protection and Sharing
A significant barrier to effective traceability is the lack of collaboration among supply chain actors regarding traceability data. Establishing trust and facilitating secure data sharing is crucial to overcoming this challenge and enhancing overall traceability efforts.
Despite these challenges, a strategic, holistic approach is essential, one that combines targeted field efforts to engage directly with smallholders and stakeholders. By addressing these barriers head-on, we can empower smallholders, drive sustainable practices, and ensure long-term compliance. The following story from the field illustrates how this approach can be effectively implemented.
A Story from the Field: Chanwit Khotchomphoo’s Work in Thailand
Amidst the lush landscapes of Northeast Thailand, our Cluster Leader, Chanwit Khotchomphoo and Agroforestry graduate from Maejo University stands at the forefront of a transformative journey. Chanwit’s work exemplifies the critical role of hands-on leadership in empowering smallholders to achieve compliance with the EU Deforestation Regulation (EUDR). His tireless efforts to bridge the gap between policy requirements and field realities are shaping a sustainable and traceable rubber supply chain.
Chanwit leads a dedicated team of up to ten field agents, working tirelessly to onboard smallholders into the first tier of the supply chain for EUDR compliance. His leadership focuses on providing the tools and guidance smallholders need to meet the rigorous standards of traceability and legal sourcing. The challenges are many—resource limitations, knowledge gaps, and logistical hurdles—but Chanwit’s unwavering commitment to building trust and capacity on the ground has made a measurable impact.
Each day, Chanwit combines strategic oversight with hands-on engagement. He conducts orientations and training sessions to ensure his field team is well-versed in data collection protocols using the KoltiTrace Management Information System (MIS) mobile application. Beyond training, he performs inspections to uphold data integrity, monitors field activities, and offers critical support to overcome obstacles faced in remote and decentralized farming areas.
Chanwit’s story is one of perseverance and innovation. By embedding himself within the realities of smallholder operations, he ensures no one is left behind in the journey toward compliance. His efforts not only support smallholders in adapting to new regulations but also contribute to building a transparent, equitable, and sustainable rubber industry in Thailand.
Reaching smallholders in remote areas is no easy task. The team often navigates rugged terrain, using motorcycles or modified farm vehicles “รถเสือภูเขา” to access farms scattered across difficult landscapes. Weather conditions and poor road accessibility further complicate their efforts. Despite these challenges, the team’s efforts are met with positivity and hope from producers. Smallholders recognize EUDR compliance as a pathway to greater transparency in the supply chains and to improve their livelihoods through higher income.
This newfound recognition is not just theoretical. In fact, one of the most tangible results of their dedication is reflected in the soaring rubber prices in Thailand. Recently, Thai rubber prices reached a 12-year high of 96.66 baht per kilogram, the highest in over a decade. This achievement came as a result of successful auctions of EUDR-compliant rubber under the Thai Rubber Trade (TRT) system, as announced by the Rubber Authority of Thailand (RAOT) (Pattaya Mail, 2024)
Under the steadfast leadership of Chanwit Khotchomphoo and the tireless efforts of his team, the path toward EUDR compliance evolves from a mere regulatory requirement into a powerful catalyst for change. Chanwit’s approach goes beyond compliance—it is about fostering long-term sustainability and creating pathways for prosperity that will benefit Thailand’s rubber producers for generations to come while at the same time empowering our clients’ businesses to comply with the regulation.
Building Trust with Smallholders: How Chanwit Engages Smallholders and Local Leaders
A crucial element in establishing trust with supply chain partners is the field team's ability to connect with smallholders on a personal level. Chanwit takes a thoughtful, hands-on approach, often beginning by engaging local leaders to explain the purpose, methodology, and benefits of the compliance survey.
As Chanwit explains, "Building trust with producers is vital. We start by educating their leaders, who then share the information within the community. This, coupled with farm visits and small group meetings, makes the process more approachable and fosters greater participation."
In addition, collaboration with local governments is equally vital to the success of projects, alongside working with smallholders. Chanwit obtains the necessary permission to collect data from the District Coordination Center, a sub-unit of the Provincial Administrative Organization, enhancing the project’s credibility. In certain regions, he has benefited from excellent coordination with village chiefs, particularly in mapping farm plots.
The Role of Comprehensive Supply Chain Mapping & Verification in EUDR Compliance
Chanwit and his dedicated team play a crucial role as the link between the business and producers, gathering essential data through comprehensive farm assessments and risk evaluations. During this phase, they actively engage with rubber smallholders in Northeast Thailand to collect vital information on key areas, including:
Land use rights
Environmental protection and forest-related regulations
The Principle of FPIC (Free, Prior, and Informed Consent)
Third-party rights
Labor and human rights
Tax compliance, anti-corruption policies, and trade regulations
These insights are gathered through plot, producer, and business surveys, meticulously recorded in real-time using the KoltiTrace MIS mobile app. This innovative approach enables them to gain a comprehensive understanding of the agricultural landscape and its associated risks. The seamless data collection process ensures enhanced traceability, compliance, and transparency at every stage of the supply chain.
“Most rubber producers in my region are very supportive of EUDR compliance, with only a few showing hesitations. For those producers who are reluctant to engage, we make sure to explain the real benefits of compliance—such as better market access and higher income. Our approach focuses on open communication and knowledge sharing, creating a community where everyone can learn from each other's experiences and best practices,” said Chanwit.
Your Trusted Partner for EUDR Compliance in the Rubber Sector
In Thailand's rubber sector, we have supported our clients across more than 60 provinces—spanning the Southern, Central, Eastern, Northeastern, and Northern regions—with over 38,000 producers registered and more than 100,000 farm plots and production areas verified, aligning a significant portion of the industry with the stringent standards set by the EUDR.
“With Koltiva, we focus on providing tailored EUDR compliance solutions. We leverage our global and local expertise in Thailand’s rubber sector to help clients navigate challenges, meet regulatory requirements, and enhance their sustainability practices. But it’s not just about compliance; we aim to strengthen their operations and ensure they remain competitive in the market,” adds Olivier Barents, our Head of Markets - APAC.
To help businesses comply with EUDR, we have our modular approach consisting of our KoltiTrace Management Information System (MIS), a robust producer mapping and traceability platform that provides a scalable solution for independent suppliers to comply with the upcoming EUDR regulations. Our extension services, KoltiSkills, offer comprehensive solutions for capacity building, ensuring that all stakeholders are well-equipped to meet compliance requirements. KoltiVerify integrates the entire supply chain data on one platform through API integration and direct data entry options, verifying supplier and processor bases to ensure compliance by checking field data from farms, plots, and processors while guaranteeing data accuracy and reducing risk.
Resources
Pattaya Mail. (2024). Thai rubber prices achieve record high in 12 years through EUDR. Retrieved from https://www.pattayamail.com/thailandnews/thai-rubber-prices-achieve-record-high-in-12-years-through-eudr-461997
Writer: Gusi Ayu Putri Chandrika Sari, Social Media Officer at Koltiva
Editor: Boby Hermawan, Head of Digital Marketing at Koltiva
About Writer:
Gusi Ayu Putri Chandrika Sari, serving as Koltiva's dedicated social media Officer, brings an impressive six-year track record in communications, bolstered by a profound enthusiasm for sustainability, technology, and agriculture. Her extensive experience in communications has honed her skills in crafting compelling narratives and engaging content across various digital platforms.
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