Latin America holds significant economic importance in global agriculture, accounting for a large share of exports to the European Union (EU). Countries such as Brazil, Argentina, Colombia, and Peru are major suppliers of key commodities like coffee, cocoa, soy, and palm oil. The economic value generated by these exports highlights the critical role Latin America plays in feeding global markets.
In 2023, Brazil led the region in coffee exports, valued at $7.35 billion. Colombia followed with $2.9 billion, and Honduras ranked third at $1.48 billion (Statista, 2024). Meanwhile, Peru emerged as a top exporter of fine cocoa beans, exporting $102.12 million worth of cocoa in 2022, mainly to European chocolate manufacturers (Trading Economics, 2024).
However, this economic activity has contributed to a significant environmental problem—deforestation. In fact, 44% of global tropical forest loss occurs in Latin America and the Caribbean, with 77% of deforestation driven by commercial agriculture (Forest Trends, 2021). Brazil alone accounts for one-third of global tropical deforestation, losing 1.7 million hectares annually, with Brazil and Indonesia together responsible for nearly half (47%) of global deforestation. (OurWorldInData, 2021).
To mitigate the environmental impact, the EU has implemented stringent environmental regulations like the European Union Deforestation-Free Regulation (EUDR), set to take effect at the end of the year. These regulations aim to combat deforestation linked to commodities exported into the EU. Non-compliance could result in significant penalties, including market restrictions, financial fines, and damage to business reputations.
Given the urgency, companies must immediately adapt their supply chains to meet these new standards, as non-compliance with the EUDR regulations could result in significant consequences. These include fines of at least 4% of their total annual Union-wide turnover, confiscation of relevant products, exclusion from public procurement and access to funding for up to 12 months, and prohibition from placing their products on the market or exporting in the event of repeated infringements. Ensuring compliance is crucial to safeguarding long-term market access and sustainability in a rapidly evolving global marketplace.
For businesses, cooperatives, and SMEs operating in these key sectors, now is the time to take proactive measures. Join our upcoming BeyondTraceability Talks webinar, where we will offer practical guidelines on achieving EUDR compliance and ensuring your business remains competitive in the global market. This insightful series brings together industry experts, thought leaders and innovators to discuss the latest trends and technologies shaping the future of agriculture. By attending, you can stay ahead of industry trends, navigate complex regulations with professional guidance, enjoy expert-led discussions, gain a global perspective, receive actionable insights, and seize opportunities to collaborate and network.
BeyondTraceability Talks: Steering Latin America Businesses Toward EUDR Compliance
The upcoming webinar will deep dive into the European Union Deforestation-Free Regulation (EUDR) and its impact on agricultural and commodity businesses throughout Latin America. Led by our team of experts, including our Head of Markets for Latin America, Silvan Ziegler, this session will provide participants with an in-depth understanding of the EUDR, outlining its stringent compliance requirements, such as geolocation data collection, legal proof of product origin, and regular risk assessments and mitigation measures. Participants will gain practical strategies for adapting their supply chains to meet these standards, ensuring long-term sustainability and legal compliance.
A key focus of the discussion will highlight how technology can enable sustainable sourcing. With advanced digital tools, businesses can accurately gather and utilize geolocation data to ensure that products do not originate from deforested lands, as well as collect proof that commodities are legally produced and traded. These technologies streamline the verification process, enhancing transparency across supply chains, particularly for smallholder suppliers. Technology also supports the ongoing risk assessment and mitigation measures required by the EUDR, allowing for regular reviews and proactive risk management. By leveraging these solutions, companies can monitor their supply chains in real-time, mitigating risks and ensuring compliance with deforestation-free standards.
Discover how tech-driven solutions have helped businesses comply with regulations and build sustainable operations. Register now and be part of the conversation!
Date : Wednesday, November 6, 2024
Time : 10:00 - 11:00 AM (GMT-5, Colombia Time)
Location : Microsoft Teams Webinar (Online)
Registration : bit.ly/BeyondTraceabilityTalks
Don't miss this opportunity to stay ahead of the curve! Register now to join our upcoming BeyondTraceability Talks webinar and equip your business with the knowledge and tools needed to meet the EU's stringent environmental standards. With the EUDR compliance deadlines fast approaching, failure to act could result in severe penalties, restricted market access, and reputational damage. Ensure your business is prepared—secure your spot today!
Resources:
Our World in Data. (n.d.). Drivers of deforestation. Retrieved from https://ourworldindata.org/drivers-of-deforestation
Statista. (2024). Coffee exports value from Latin America and the Caribbean in 2023, by country. Retrieved from https://www.statista.com/statistics/1458083/latin-america-caribbean-coffee-exports-value/
Trading Economics. (2024). European Union imports from Peru of cocoa and cocoa preparations. Retrieved from https://tradingeconomics.com/european-union/imports/peru/cocoa-cocoa-preparations
Forest Trends. (2021). Illicit harvest, complicit goods: The state of illegal deforestation for agriculture. Retrieved from https://www.forest-trends.org/wp-content/uploads/2021/05/Illicit-Harvest-Complicit-Goods_rev.pdf
Writer: Kumara Anggita, Content Writer
Editor: Boby Hermawan Arifin, Head of Digital Marketing
About Writer
Kumara Anggita, serving as Koltiva's dedicated Content Writer, brings a wealth of experience from her six-year tenure in journalism in the fields of humanities and lifestyle, as well as her role as a writer in the tech industry. Her deep-rooted passion for gender equality and sustainability spurred her to enhance her reporting and storytelling skills through the EmPower Media Bootcamp by UN Women. Now, Kumara utilizes her platform to advocate for sustainable practices and gender equality through her compelling writing.
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