Smallholder farmers, who operate on small plots of land typically less than two hectares are critical to the global agricultural landscape. They contribute approximately 80% of the food consumed in sub-Saharan Africa (SSA). Smallholder farmers also produce a significant portion of the commodities that are exported to Europe and other global markets. For example, smallholders are responsible for more than 70% of cocoa production and a significant share of coffee and tea. This said, the policy development regarding the European Union Deforestation Regulation (EUDR) that came into force in June 2023 is expected to affect access to these European markets which many smallholders (and the produce aggregators) have relied upon for decades. This has led to swift action by intervening actors to ensure these markets are salvaged and the source of livelihood for many farming families is maintained.
This blog explores how an agritech company, eProd, is empowering agribusinesses and producer organisations across SSA to align their operations to the EUDR and hold on to and expand their existing produce markets. Their capacity building interventions which complement their supply chain management system, address produce traceability which is critical when assessing how production related activities impact the environment.
The challenges facing agribusinesses targeting export markets, especially the EU
African Agribusinesses targeting global markets face varied challenges ranging from stringent regulatory requirements to market competition and fluctuating demand. A proper understanding and mitigation of these obstacles is crucial for agribusinesses to thrive and sustain their operations.
Reliable global markets such as the European Union (EU) are known for their rigorous standards and regulations concerning food safety, environmental protection, and quality control.
The EUDR is a legislative measure to prevent deforestation and forest degradation linked to select products consumed within the EU. This regulation requires buyers and companies to ensure that their products do not contribute to deforestation, either directly or indirectly, by adhering to strict due diligence requirements. The EUDR covers commodities including soy, palm oil, beef, wood, cocoa, and coffee, as well as derived products such as leather, chocolate, and furniture.
Copyright: GloballyCool
From June 2026, the regulation places the product traceability burden on aggregators or exporters. They will have to conduct thorough checks and gather information to ensure that their supply chains do not promote deforestation and forest degradation. These records should identify the origin of the products, assess risks and implementation of mitigation measures where necessary and be readily available to authorities and consumers. The legislation will provide greater transparency and accountability about products’ origin with significant penalties such as restrictions on market access being cited to help with regulation enforcement.
eProd’s capacity building on EUDR
To support export businesses in aligning with these regulatory requirements, eProd, an agritech participating in the GSMA AgriTech Accelerator, has rolled out a capacity-building initiative in the form of webinars. The webinar focuses on effectively managing compliance with the EU Deforestation-free Regulation (EUDR) and the role that digital tools, like eProd’s digital supply chain management system, play in meeting regulatory and certification standards. The webinar further highlights how agribusinesses can invest in traceability systems to enhance supply chain transparency, build strong supplier relationships, and align to broader sustainability requirements.
Looking Forward
The EUDR regulation represents a significant shift towards sustainable production activities. While it poses challenges for agribusinesses to implement, it offers opportunities for proper remuneration of smallholders for their produce grown in observance of the required sustainable practices. By embracing sustainable practices and leveraging support from various stakeholders, agribusinesses are expected to thrive under the EUDR and contribute to global efforts to combat deforestation and forest degradation.
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The GSMA AgriTech Accelerator is funded by the German Federal Ministry for Economic Cooperation and Development (BMZ) and supported by the GSMA and its members.
