Finding a place for smallholder farmers in EU deforestation regulation

The EU Deforestation Regulation (EUDR) aims to eliminate deforestation-driven imports of commodities like palm oil, rubber, cocoa, coffee, soy, and cattle. However, the briefing highlights that stringent due diligence requirements—including geolocation and traceability—risk excluding smallholder farmers in Southeast Asia who lack the financial resources, technical capacity, and legal land tenure to comply. The document argues that without targeted support, such as knowledge hubs, financial mechanisms for compliance costs, and improved stakeholder coordination, smallholders may be pushed out of the global value chain. It emphasizes that local context is critical, as many smallholders operate through informal transactions and lack the certifications required by the EU market.

• The EU Deforestation Regulation (EUDR), effective as of 29 June 2023, prohibits six 'forest-risk commodities'—wood, soy, rubber, palm oil, cocoa, and coffee—and their derivatives from entering the EU market unless they are proven to be deforestation-free and legally produced through due diligence.
• Smallholder farmers in Southeast Asia are highly vulnerable to the EUDR because they lack the resources and capacity to meet stringent requirements, which could lead to their exclusion from the global value chain and negatively impact their income.
• Compliance is particularly difficult for smallholders due to a lack of legal land tenure, which prevents them from proving they are not engaged in deforestation, and a lack of technology for the required geolocation and traceability data.
• There is a significant gap in certification among smallholders; for example, it is estimated that only 10% of smallholders have obtained Roundtable on Sustainable Palm Oil (RSPO) Certification, with even lower rates for independent smallholders.
• The briefing identifies three primary opportunities to support smallholders: establishing knowledge hubs to bridge information gaps, providing financial mechanisms to cover the costs of compliance (as certification does not always guarantee premium prices), and streamlining stakeholder collaboration through policy dialogues.
• Historical experience with the EU's Forest Law Enforcement, Governance and Trade (FLEGT) legislation in Vietnam, Laos, and Indonesia suggests that regulatory standards often fail to address the social and economic impacts on smallholder tree farms due to bureaucratic complexity and limited technical capacity.

APA

Melati, K., Jintarith, P., & Lee, H. (2024). Finding a place for smallholder farmers in EU deforestation regulation. Stockholm Environment Institute. https://www.sei.org/wp-content/uploads/pdfs/174795/finding-a-place-for-smallholder-farmers-in-eu-deforestation-regulation.pdf

Chicago

Melati, Kuntum, Pimolporn Jintarith, and Haeun Lee. Finding a place for smallholder farmers in EU deforestation regulation. Stockholm Environment Institute, 2024. https://www.sei.org/wp-content/uploads/pdfs/174795/finding-a-place-for-smallholder-farmers-in-eu-deforestation-regulation.pdf.

Wikipedia

{{cite report |last1=Melati |first1=Kuntum |last2=Jintarith |first2=Pimolporn |last3=Lee |first3=Haeun |title=Finding a place for smallholder farmers in EU deforestation regulation |publisher=Stockholm Environment Institute |date=September 2024 |url=https://www.sei.org/wp-content/uploads/pdfs/174795/finding-a-place-for-smallholder-farmers-in-eu-deforestation-regulation.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{melati2024finding, author = {Melati, Kuntum and Jintarith, Pimolporn and Lee, Haeun}, title = {{Finding a place for smallholder farmers in EU deforestation regulation}}, institution = {Stockholm Environment Institute}, year = {2024}, month = sep, url = {https://www.sei.org/wp-content/uploads/pdfs/174795/finding-a-place-for-smallholder-farmers-in-eu-deforestation-regulation.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }