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Deforestation rules could hit supply chain’s ‘weakest link’, say farmers

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New UK legislation could lead to financial struggles for small-scale producers. Coffee beans at the Red Ecolsierra association in Santa Marta, Colombia. PA/Chris Terry/Fairtrade/PA

New rules that would ban UK businesses from selling goods sourced from land linked to illegal deforestation could place the burden and cost on the supply chain’s “weakest link”, coffee farmers have warned.

Small-scale producers in Colombia are calling for their voices to be heard amid fears they could lose market access due to barriers like a lack of electricity or internet, certification fees and the additional costs of compliance.

Environment Secretary Steve Barclay announced new legislation in December, which will ban businesses from selling goods containing certain commodities sourced from land used illegally, with campaigners calling for coffee to be included.

It follows the EU where new rules will mean seven such products, including coffee, can no longer be sold in the bloc from December 30 this year, while the US is also developing similar legislation.

Farmers in Colombia’s Sierra Nevada mountain range said they may not be able to make ends meet when the new rules come into effect.

The communities are already facing a multitude of existential challenges, including climate change, poor roads, the threat of violence and falling coffee prices, as well as mounting production and certification costs.

Yudis Camacho, a 55-year-old farmer from Siberia township in the Sierra Nevada, said: “The conditions here are very hard.

“Sometimes the requirements are very high for the little resources that we have here. That makes it really hard for us to continue growing coffee.”

Most farmers say that while they support deforestation policies, they cannot absorb the costs of expensive measures like geomapping, which helps businesses and regulators track illegal deforestation.

Jaime Garcia Florez, 59, another farmer from Siberia township, said: “We all recognise that the European market has a zero tolerance for deforestation, but we have to show the regulators that this requirement has extra costs for us and a different cost for them.

“Deforestation regulation is imposed on us without consultation and we feel like the responsibility is always on our shoulders.”

Victor Cordero, general manager of the Red Ecolsierra, a Fairtrade co-operative of Sierra Nevada farmers, said the problem stems from “a complete imbalance” in the global agriculture sector.

“The main issue with the regulations is that the cost is transferred onto the supply chain’s weakest link,” he said.

“Of course, big companies can implement the regulations faster, but a small producer in Latin America will be more concerned about resolving his day-to-day issues than about these regulations.”

Mr Cordero said any financial aid that comes with the regulations will be important, but politicians need to design the rules so they do not penalise those who have “historically been doing things in the right way”.

He suggested different targets for the size of the farm or company and unrolling the rules “little by little” for small producers in countries like Colombia.

Fairtrade campaigners are calling on the UK Government to ensure small producers across the world have the money and resources to prevent deforestation as well as build sustainable businesses.

Alexander Carnwath, Fairtrade Foundation’s head of public affairs, said: “The adoption of robust legislation should be producer-focused.

“This means that it must be designed and implemented in a way that ensures smallholder farmers and workers do not carry the costs and burdens of compliance.”

The organisation, which is marking its 30th anniversary on Monday, is urging ministers to include provisions in the Environment Act legislation that enable smallholder farmers to play a leading role in tackling deforestation by investing in their expertise and ensuring their rights are protected.

“We would like to have our voices heard,” Ms Camacho said. “I would like to be able to talk about how we are protecting nature.

“We are not deforesting, we are protecting animals and trying to conserve, and so we would like (policy makers) to have that in mind.”

Mr Cordero added: “Imagine getting up one day without coffee. Think about taking the metro and there is no coffee or going to buy the chocolate you love so much and you won’t find it.

“How would the world be without those small producers?”

A Government spokesperson said: “The UK is leading the way globally with new legislation to tackle illegal deforestation to make sure we rid UK supply chains of products contributing to the destruction of these vital habitats.

“This legislation has already been introduced through the Environment Act and is just one of many measures to halt and reverse global forest loss.

“We are also investing in significant international programmes to restore forests, which have avoided over 410,000 hectares of deforestation to date alongside supporting new green finance streams.”

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