EUDR Boosts Future of Colombian Coffee, Palm Oil

For Colombia, coffee and palm oil are key export products. Over half a million families depend on coffee cultivation, and the palm oil industry employs nearly 200,000 people. The EUDR legislation could substantially impact farmers and Colombia’s production and trade practices in the short term.

The study, conducted by WSER on behalf of the Dutch embassy in Bogotá, explores the key actions, verifications and risks along the value chain necessary to meet the EUDR requirements. Researcher Maria Naranjo explains: “Colombia’s coffee processing is complex. A milling plant can receive coffee from 15,000 producers, making it difficult to trace its origin. Compliance with the EUDR requires clear guidelines, process standardisation, traceability technologies, and support for farmers to overcome cost and technical obstacles.”

Traceability technologies such as satellite imagery, blockchain, barcodes, and Radio Frequency Identification (RFID) tags can help certify coffee and palm oil for the European market. For instance, the National Federation of Coffee Growers (FNC) has laid a solid foundation with its SICA system, which contains detailed information about plantations and can trace coffee back to individual plots. The palm oil sector is also taking steps, with initiatives such as the collaboration between Fedepalma, IDEAM (Colombian Institute of Hydrology, Meteorology and Environmental Studies) and technology company Satelligence for real-time plantation monitoring. “Initiatives like APSColombia use a verification scheme that already covers most of the EUDR legal requirements,” Naranjo says.

Standardisation plays a crucial role in the successful implementation of traceability systems. By standardising processes, technologies, and reporting requirements, data from various sources can be easily combined and verified. This helps prevent confusion and inefficiency, especially when products pass through multiple stages in the supply chain. Aligning national legislation with EUDR Due Diligence as a commercial requirement and providing clear guidelines for all stakeholders is crucial. “For example, using the citizen ID as a unique identifier in traceability systems can help standardise and simplify information flows, ensuring accurate tracking of products from farm to export,” says Naranjo.

A key challenge for value chain actors is ensuring that small-scale farmers, especially those without geospatial data, are not excluded from the EU market due to the cost and complexity of EUDR compliance. Without support, these farmers risk marginalisation, while deforestation-linked products may be shifted to less regulated markets, undermining sustainability efforts. Naranjo explains: “Effective traceability without overburdening farmers requires coordinated efforts from public and private organisations, cooperatives, and governments.” This also means addressing legitimacy and land registration issues to prevent fraud and exclusion. Expanding internet infrastructure in rural areas could further improve information sharing.

Innovative financing models such as public-private partnerships, data monetisation and data-driven microcredit schemes can help. For policymakers, there is an opportunity to encourage creative solutions through technology subsidies. They can act as a bridge between technology providers and farmers.

Naranjo concludes: “Implementing the EUDR will bring systemic changes and have a significant impact on major commodity-exporting countries like Colombia. While the regulation may have some negative effects, it also offers a global opportunity to build a more traceable, safer, and fairer system for workers and producers-especially for those already committed to high sustainability standards in commodity production.”