{"id":30109,"date":"2025-01-22T10:59:55","date_gmt":"2025-01-22T13:59:55","guid":{"rendered":"https:\/\/www.cecafe.com.br\/?p=30109"},"modified":"2025-01-22T10:59:55","modified_gmt":"2025-01-22T13:59:55","slug":"actions-in-the-export-sector-support-the-coffee-industrys-adaptation-to-new-trade-rules-with-a-focus-on-esg","status":"publish","type":"post","link":"https:\/\/www.cecafe.com.br\/en\/sustainability\/articles\/actions-in-the-export-sector-support-the-coffee-industrys-adaptation-to-new-trade-rules-with-a-focus-on-esg-20250122\/","title":{"rendered":"Actions in the export sector support the coffee industry’s adaptation to new trade rules with a focus on ESG"},"content":{"rendered":"
The expansion of the EUDR creates additional opportunities to engage in international discussions and improve due diligence processes<\/h5>\n

In 2024, new trade rules that focused on environmental, social and governance criteria were at the center of national and international debates and actions. The new regulations adopted by the European Union (EU)-a market that accounts for nearly 50% of Brazil’s coffee exports\u2014will impact the entire supply chain of companies within the bloc and affect agricultural commodity producing countries, including Brazil\u2019s coffee growing regions.<\/p>\n

These new regulations include the European Union’s Deforestation-Free Regulation (EUDR), which took effect in 2023; the Corporate Sustainability Due Diligence Directive (CS3D); and the Regulation on the Prohibition of Forced Labor, both of which were approved in 2024 but will come into force in 2027.<\/p>\n

After intense global debate, the longawaited extension of the EUDR’s due diligence obligations\u2014requiring proof that products are deforestation-free\u2014was approved, setting deadlines of December 30, 2025, for large companies and June 30, 2026, for small companies. In practice, this gives European companies importing coffee an additional year to operate under the EUDR framework on a trial basis, without facing inspections or penalties for non-compliance.<\/p>\n

For the exporting sector, the extended deadline for the full application of the EUDR to coffee shipments provides an opportunity to increase engagement with European authorities and importing partners. Key priorities include: (i) clarifying remaining uncertainties regarding the implementation of the regulation; (ii) identifying solutions to address large-scale false positives for deforestation; (iii) improving socio-environmental due diligence processes; and (iv) actively participating in discussions on the country risk classification process that will be developed by the European Commission in the coming months.<\/p>\n

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It is important to note that the extension of the EUDR was formalized by Regulation 3234\/2024, dated December 23. This regulation underlines the European Union’s commitment to publish a list of countries or regions classified as high or low risk of defore station by June 30, 2025.<\/p>\n

In other words, in the first half of 2025, the discussions on the definition of the risk benchmark for countries and\/or their parties in the framework of the EUDR will be of great importance. The outcome will have a direct impact on the screening process for cargo to be imported into the European market.<\/p>\n

The EUDR establishes that, for commodities originating in producing countries classified as standard risk, verification by at least 3% of European economic operators making the products available on the common market will be ensured. On the other hand, if the producing country is classified as high risk, the competent authorities will check at least 9% of European operators and 9% of the quantity of products originating from that country.<\/p>\n

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In addition to increasing its participation in relevant international discussions, Cecaf\u00e9’s priority for 2025 is to improve sector knowledge and support its adaptation to the new realities of exporting to the European Union, which requires comprehensive socioenvironmental risk due diligence processes throughout the supply chain.<\/p>\n

This is even more important given the relevance of the European Union for Brazilian coffee exports. According to Cecaf\u00e9 data, Brazil exported 23.6 million bags of coffee to the European Union in 2024, representing a 42.8% increase in sales to the bloc. As a result, the EU now accounts for 47% of Brazil’s total coffee exports. This means that approximately 71,500 containers will be subject to verification, highlighting the need for a structured and strategic approach in working with European leaders to classify Brazil’s coffee growing regions based on technical and scientific data.<\/p>\n

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For Brazilian coffees, it is essential to have an up-to-date and standardized mapping of coffee growing areas that reflects the reality of the environmental responsibility of Brazilian coffee growing. The mapping of coffee growing areas is a fundamental tool to avoid unnecessary additional bureaucratic burdens for exporters.<\/p>\n

Brazilian coffee organizations, together with the Ministry of Agriculture and Livestock (MAPA) and other members of the Deliberative Council for Coffee Policy (CDPC), developed the project to georeference coffee plantations using high-resolution imagery.<\/p>\n

The mapping will show coffee plantations as of December 2020 (the cut-off date of the EUDR), as well as coffee plantations currently under cultivation. Based on these two reference points, the dynamics of the coffee growing area will be accurately determined. Preliminary data indicate stability in the size of the area under cultivation, with localized expansions in some regions over lowcapacity pastures, which will further support the “low-risk” classification for Brazil’s coffee growing regions.<\/p>\n

In order to meet EUDR requirements, gain a competitive advantage, and recognize the efforts of approximately 300,000 Brazilian coffee growers, the coffee plantation georeferencing project should utilize technology capable of producing highresolution imagery. This process must include thorough verification and validation by a qualified professional with recognized expertise.<\/p>\n

The use of algorithms and artificial intelligence (AI) to obtain imagery by European authorities and importers has led to false deforestation alerts, as these tools have difficulty distinguishing between protected forest areas and coffee plantations.<\/p>\n

The implementation of the coffee plantation georeferencing project using high-resolution imagery is essential. This initiative will be financed by the Fund for the Defense of the Coffee Economy (Funcaf\u00e9) and carried out by companies with the necessary technology and expertise, under the supervision of MAPA, the Brazilian Agricultural Research Corporation (Embrapa) and the National Supply Company (Conab), together with the members of the CDPC and with the technical supervision of Cecaf\u00e9.<\/p>\n

The active participation of Cecaf\u00e9 is fundamental, since the organization has 126 members, including national and global companies and cooperatives that represent the legitimate interests of hundreds of thousands of Brazilian coffee growers, responsible for about 96% of Brazil’s coffee exports to about 150 countries in recent years.<\/p>\n

In addition to the actions mentioned above, it is worth highlighting other initiatives, such as the distance learning Platform of Cecaf\u00e9’s Informed Farmer Program, which will offer a specific course on “New Trade Rules in Times of ESG” in 2025. This initiative was developed as part of the collective effort “Social Welfare in Coffee Growing” and is the result of a collaboration between Cecaf\u00e9, the German Coffee Association (Deutscher Kaffeeverband, DKV) and the Global Coffee Platform.<\/p>\n

The course consists of seven online lessons totaling 80 minutes and covers the concept of socio-environmental due diligence, the EUDR, the CS3D, the European Union regulation on forced labor, and good socio-environmental practices in line with Brazilian legislation that make coffee more competitive for export to the European market.<\/p>\n

In addition, in 2024 Cecaf\u00e9 launched a landing page on the EUDR. The goal of the initiative was to make it easier to understand the new rules and their impact on the Brazilian coffee trade, including questions and answers for farmers, exporters and importers. The landing page can be found at: https:\/\/www.cecafe.com.br\/eudr\/<\/a>.<\/p>\n

\"\"<\/p>\n

Cecaf\u00e9 is at the forefront of the challenge to advocate for Brazilian coffee abroad and promote awareness at the national level through informative and educational digital campaigns on the new EU regulations, bringing knowledge and clarity to Brazilian coffee farmers and exporters.<\/p>\n

This communication initiative will continue in 2025 with the aim of introducing the Caf\u00e9s do Brasil Socio-Environmental Monitoring Platform to European importers. Developed through the partnership between Cecaf\u00e9 and Serasa Experian and widely adopted by
\nthe national export sector, the platform highlights the procedures implemented in Brazil to ensure compliance with the EUDR.<\/p>\n

The platform currently includes more than 50 exporting companies and cooperatives, responsible for almost all coffee shipments to the EU, which use technology to assess and prove the compliance of coffee beans to be exported to the European bloc in accordance with EUDR regulations.<\/p>\n

With this latest initiative by Cecaf\u00e9’s Social Responsibility and Sustainability Pillar (RSS), the export sector reaffirms that the best practices implemented in coffee farming, along with ongoing efforts to improve sustainability, are key to maintaining Brazil’s leadership in supplying the most demanding markets in terms of ESG criteria.<\/p>\n

Marcos Matos<\/strong>
\nCECAF\u00c9 CEO<\/p>\n

Silvia Pizzol<\/strong>
\nCECAF\u00c9 Sustainability Manager<\/p>\n

 <\/p>\n

 <\/p>\n

 <\/p>\n

 <\/p>\n

 <\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

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