New rules from the European Union to curb deforestation and promote more sustainable practices have affected how farmers grow their products which are destined for the European market. Three forest and farm producer organizations in Ecuador share their views.

What is EUDR?

From 30 December 2025, new rules will apply to cattle, cocoa, coffee, palm oil, rubber, soya and wood that are produced in the EU or imported to ensure they are “deforestation-free”. 

The so-called EU Deforestation Regulation (EUDR) states that these products need to meet the following three conditions: 

1. They come from plots of land where no deforestation or forest degradation has occurred in the past four years (since 31 December 2020).
2. They have been produced in accordance with the relevant legislation of the country in which they’re made, which includes complying with rules around land rights, environmental protection, labour rights, human rights and anti-corruption regulations.
3. They come with a due diligence statement which includes a description of the product and quantity produced, the geographic coordinates of the plots of land where the product came from, the country of production, evidence of legal harvest, and adequately conclusive and verifiable information that the products are deforestation-free.

How is this affecting small-scale farmers?
The obligation to comply with the regulations lies with the companies placing the product on the EU market. This means that smallholders will be asked by the buyers in their supply chain to supply extra information on their products – including the geo-cordinates of where the product came from. 

As the world’s second largest exporter of cocoa beans, Ecuador’s farmers are particularly affected by these new regulations. Three Indigenous FFF-supported cocoa-producing organizations in Ecuador whose livelihoods are already feeling the impact of EUDR are the Kallari Association, Tsatsayaku Association and Wiñak in the Amazon.  Their experiences of preparing for EUDR were shared at the recent Regional Exchange co-organized by the FFF in Ecuador.

Although the rules do not come into effect until the end of the next year, considering the large volumes of data needed to comply, farmers have had to start planning now. As with any new change that is introduced, there are positives and negative aspects to it.

Improving traceability
The Kallari Association in Napo province is dedicated to the production of cocoa, vanilla and guayusa and is steeped in Kichwa traditional knowledge. As a result of EUDR, Kallari has developed a digital traceability tool that allows them to track origin, movement and destination of the products it sells throughout the supply chain. This tool allows them to verify with field polygons that cocoa cultivation is maintained under agroforestry systems, free from deforestation.

The system quickly and easily allows them to access information about the producer, purchase route, storage, processing, quality certification, shipping and delivery of each product. Not only does this help Kallari to comply with EUDR, but it also allows them to identify potential issues within their own supply chain, reducing costs and making them more effective.

Adopting sustainable practices
The Kallari Association have also incorporated more sustainable agricultural practices, such as using bio-inputs to nourish the soil which has increased the quality of the cocoa they produce, giving a higher value to their product. This has been a very positive experience, sharing new skills and building capacity among farmers to implement agroforestry techniques.

Similarly, the Tsatsayaku Association, also based in the Amazon, have made improvements to make their supply chain more environmentally friendly. They have integrated native stingless bees (meliponiculture) and vanilla cultivation among their cocoa plantations, positively employing agroforestry practices to meet EUDR.

For all the associations, this has been felt as a much wider benefit of the new rules – much more than simply complying with rules.

Tensions about land rights
However, producer organizations have also raised that there are certain challenges with the new rules. A recurring theme highlighted by all three forest and farm producer organizations was the issue of land rights. Under EUDR, a product must be produced in accordance to the country’s land rights. Indigenous land is inherited and passed down the generations, and there can be disputes about its purpose – whether it be community or agricultural.

As Wiñak, another cocoa-producing organization in the Amazon points out, because cocoa fetches a high price, this can lead to conflicts between families who wish to cultivate cocoa on community-owned land. This can be difficult to navigate.

Honouring ancestral ways
Some cooperatives feel EUDR does not respect ancestral ways and that the new rules are European ideals imposed on an Indigenous way of life. For example, in Wiñak, the culture and tradition is that the whole family works together from a young age, not only to produce the cocoa, but also other products under the diversity of the Chakra system. Under EUDR, this could be classified as child exploitation, whereas amongst the producers of Wiñak, working as a family is a way of life to learn to live with nature, respecting children's rights such as education and free time to enjoy.

Improving quality of life
Ultimately, although there are some misgivings about EUDR, there are also benefits. For example, a more widespread use of agroforestry techniques is not only kinder to the planet and improves the quality of cocoa produced, but it also gives it a higher market value which will lead to a better livelihood for families in the Amazon.

That said, it is still early days under the new regulations, and time will tell what the real impact will be on small-scale farmers around the world. However, for all associations it is important to have production processes that respect the Amazon rainforest, like the ones they practice in the Amazon Chakra system.