In the rugged mountains of Concepción de Soluteca, Honduras, the legacy of land reform from the 1970s is being reshaped by the impending implementation of the European Union’s Deforestation Regulation (EUDR). For generations, families like Roberto González’s have toiled on small plots, their lives intrinsically tied to the land. González’s parents were granted 12 hectares of land as part of a government initiative, which they cleared with basic tools to cultivate staple crops like corn, beans, and bananas. This life, while providing sustenance, was one of mere survival, marked by limited public infrastructure and the early involvement of children in farm labor. González himself only completed three years of elementary school, his education largely supplanted by the demands of the farm.
When González inherited the land two decades later, coffee cultivation was emerging as a promising new avenue. Driven by promises of lucrative export markets and facilitated by bank loans, coffee initially offered a pathway to improved incomes and living conditions. González, now 39, recalls this period with a mixture of nostalgia and regret. However, the initial optimism was short-lived. The traditional methods of cultivation, applied to coffee as they were to other crops, lacked adequate soil and shade management. As harvests began to decline, the response was to expand cultivation areas, leading to the clearing of remaining forests and the degradation of vital water sources. The situation escalated dramatically around 2012 with the devastating outbreak of coffee rust, a virulent fungal disease. The agricultural crisis plunged many farmers into poverty, forcing some to migrate. "We destroyed the foundations of our livelihoods, but it was out of ignorance; we just didn’t know better," González reflected, a sentiment that encapsulates the broader challenges faced by many smallholder farmers.
The EUDR as a Catalyst for Change
The looming enforcement of the EUDR, designed to ensure that commodities imported into the European Union are not linked to deforestation or forest degradation, has emerged as a pivotal moment for farmers like González. While he acknowledges a degree of uncertainty about the regulation’s intricate details, he understands the fundamental imperative: to enhance his agricultural practices if he wishes to maintain access to the European market, a critical destination for a significant portion of his harvest, beginning next year.
González is an active member of the Union and Strength Agricultural Cooperative, a group of 19 farmers whose collective output is largely channeled through Becamo S.A., one of Honduras’s leading coffee exporters. Jose Manuel Calero Moraga, director of sustainable producer services at Becamo, which sources beans from nearly 10,000 smallholder farmers, stated that "We sell 69% of our coffee to Europe. That is why it was clear to us from the very beginning that we had to comply with the EUDR requirements."
Becamo’s commitment to EUDR compliance predates the European Commission’s formal proposal in November 2021. Their largest European client, Germany’s Neumann Kaffee Gruppe (NKG), had already initiated the development of a traceability app, which is now a standard tool for all Becamo’s suppliers. The primary hurdle has been the integration of these technological solutions with smallholder farmers, many of whom reside in remote areas and are accustomed to informal business practices. These farmers are crucial to the supply chain for high-quality Arabica coffee destined for the EU. In Honduras, this necessitates on-the-ground engagement.
Modernizing Practices, Facing New Challenges
"The whole process has forced us to pay even more attention to production conditions on the farms," Calero Moraga observed, adding that Becamo has consistently provided farmers with agricultural consulting services long before the EUDR became a prominent concern. The EUDR mandates that all coffee and other commodities entering the EU must be documented in a verifiable manner, free from recent deforestation. This requirement has necessitated initial investments in new systems and expertise. Since 2021, Becamo has significantly expanded its support network, increasing the number of agronomic consultants serving as regional representatives from 16 to 40, and doubling the size of its sustainability department from 26 to 51 employees.
These agronomists play a crucial role in assisting farmers with farm surveys, land title verification, and providing guidance on infrastructure improvements, such as building latrines and shelters for harvest workers, ensuring compliance with labor laws. Farmers are required to complete comprehensive questionnaires detailing certifications, fertilizer usage, employee numbers, and wage structures. Gonzalo López, a neighbor of González and fellow farmer, acknowledged the difficulty of the process but highlighted the undeniable need for improvement. "We have noticed for ourselves that we had to improve, as our harvests were declining, the climate is getting hotter, the soil is getting poorer and water is becoming scarcer. We knew that we needed to do something. We just weren’t quite sure what and how," he stated, emphasizing how the EUDR requirements have acted as a powerful catalyst for modernizing their farming methods.
Addressing Cultural Barriers: Child Labor
While gathering data presents a tedious task, the agronomists identify the most significant challenge as overcoming ingrained cultural traditions that conflict with EUDR mandates. A prominent example is the practice of children accompanying their parents during harvests, which often coincides with the Christmas holidays, and consequently beginning to assist with farm work from a very young age. Calero Moraga explained, "During our conversations, we learned that the main problem was that the parents simply did not know where to leave their young children, because many of them are migrant workers who travel from region to region during the coffee harvest." In response, Becamo has partnered with several major German coffee retailers to fund mobile childcare centers in key coffee-growing regions of Honduras during the harvest season.
Beyond child labor, agronomists encounter a spectrum of issues during farm visits. These include pest infestations, inadequate soil management, erosion, degraded agroforestry systems, an aging rural population, and difficulties in securing seasonal labor for the harvest. Agronomist Carlos Bonilla noted, "There was a great need for support," prompting Becamo to expand its technical assistance programs for farmers.
Fostering Sustainable Farm Management
With this support, Jaime Calix has transformed his 13-hectare farm, Finca La Chachi, into a model of sustainable agriculture. "I haven’t sprayed any pesticides in six years," he stated with pride. "Instead, I’ve planted trees whose leaves cover the ground, retain moisture, and build up humus." He demonstrated the rich, dark soil beneath the leaf litter, a testament to his improved practices. Calix also implements a rigorous pruning schedule for his coffee bushes every three years to promote rejuvenation. He believes the EUDR has inadvertently benefited farmers by compelling them to adopt more environmentally conscious practices. "And ultimately, everyone benefits from this: us, the exporters, the consumers, and future generations in Honduras, to whom we are leaving behind fertile land and an intact natural environment," Calix told Mongabay.
Calix also addressed the significant environmental challenge posed by coffee cherry pulp, the fruit’s outer layer removed during processing. "Traditionally, we threw them into the forest or into the rivers," he admitted, detailing how this practice led to soil acidification, groundwater contamination, and oxygen depletion in rivers. "In workshops organized by IHCAFE [Honduran Coffee Institute], we learned to accelerate the decomposition of the coffee cherries using lime and microorganisms to create compost, which improves the soil of our coffee plantations," Calix explained. He is now considering a loan to invest in his own processing equipment and actively monitors soil conditions and weather patterns through online resources.
The EUDR’s impact extends to fostering digital inclusion among farmers, a critical factor in enhancing productivity and mitigating rural poverty, as highlighted by a World Bank study on investing in digital technology for smallholder market access. Digitalization also holds the potential to engage younger generations in agriculture, curbing the rural exodus that plagues Honduras, according to a recent study by the Inter-American Institute for Cooperation on Agriculture (IICA). Furthermore, the EUDR’s stringent requirements have spurred a shift towards sustainable production, with many farmers transitioning to higher-value organic coffee. Calero Moraga noted a significant change in export composition: "Just a few years ago, 70% of our exports were conventional coffee and 30% were sustainable coffee with some sort of certificate. Now we’re at 50-50." This trend is particularly beneficial for coffee farmers, as organic coffee commands a premium price.
Calero Moraga asserts that the costs associated with EUDR compliance, often cited by opponents as prohibitive, are manageable. In Honduras, these costs are estimated at approximately $1 per 100-kilogram sack of coffee beans. The ultimate distribution of these costs throughout the supply chain remains to be seen, but for Becamo, the compliance process represents a strategic investment in a more sustainable future. Calero Moraga anticipates that similar regulations will be adopted by other major markets, including Canada and the United States, following the EU’s lead. Federico Bert, coordinator for agricultural digitalization at IICA, concurs, stating, "The world will inevitably require more and more standards, regulations, and certifications every day, and the EU is at the forefront of this trend."
Navigating Digital Divides and Data Ownership
Bert views the EUDR as a potent driver of digitalization, offering significant opportunities for smaller farmers. However, he also cautions against inherent risks and challenges. A primary obstacle is the lack of reliable internet connectivity in many rural areas. Educational barriers also persist; a study by Berta Ortiz of the Alliance of Bioversity International and CIAT found that only 10% of smallholder farmers utilize agricultural apps, even when provided for free. Ortiz’s research, "Error 404 farmers not found," points to issues such as shared phone usage, frequent SIM card changes, and information that is difficult to comprehend or is lost due to infrequent dissemination.
Consequently, farmers often remain on the periphery of the digital transformation, lacking true ownership of their data. This information typically resides with exporters who have invested in its collection. Becamo’s app, for instance, offers farmers limited functionality, preventing them from accessing or sharing all collected data. This has practical implications: if a farmer wishes to sell to a different exporter, they must repeat the entire EUDR documentation process.
While some private companies offer paid traceability apps that facilitate data sharing with third parties, including certification bodies for deforestation-free or organic coffee, these services can be prohibitively expensive for independent farmers, with monthly fees reaching up to $300. However, some cooperatives in Honduras are exploring these options. For those unable to afford such subscriptions and seeking to maintain their autonomy, the German Federal Ministry for Economic Cooperation and Development (BMZ) has funded Inatrace, a free, open-source digital solution for EUDR compliance. While some farmers have reported satisfaction with Inatrace, others have experienced technical difficulties, including system crashes, offline data upload issues, and inaccuracies in farm geolocating.
Marco Pérez, a technical advisor for the German development agency GIZ in Central America, acknowledges that "There is still room for improvement before the EUDR enters into force next year." He emphasizes the need for financial and technical support from private companies, underfunded governments, or international aid organizations, which are themselves facing funding cuts. Bert from IICA reiterates that "The EUDR is a powerful driver of compulsive digitalization. On the one hand, this has a positive side, driving digitalization, but on the other hand, the fact that it is compulsive can harm those who struggle to adapt to these changes." The IICA is actively working to raise awareness among Latin American governments about the imperative to improve rural infrastructure, enhance education, and establish clear regulations on data ownership to mitigate the potential for exclusion and ensure that the EUDR serves as a tool for inclusion rather than exclusion.
