Coffee Sector Continues Work to Comply with New EU Deforestation RegulationCoffeeNetwork (New York) - Continuing the negotiations with the Federal Government regarding the European Union Regulation for Deforestation-Free Products (EUDR), the Brazilian Coffee Exporters Council (Cecafé), along with representatives from other sectors that are impacted, met yesterday in Brasília members of the various trade organizations.
The director general of Cecafé, Marcos Matos, reveals that the government presented the updates regarding the EUDR and the recent phase of negotiation with the representatives of the European Union. "The negotiations remain in the political spheres of Brazil and the EU, and the private sector continues to carry out its negotiations with its peers and partners in the European bloc. A point of consensus is that there is no option of not complying with the Regulation, which will come into force on January 1, 2025," he comments.
In his remarks, he mentioned Cecafé's participation in dozens of events and debates with the European Commission and the European Union Agency for the Space Program (EUSPA) and detailed the information contained in the Cecafé-Serasa Experian Traceability Platform, which meets the demands of the EUDR and is constantly evolving to avoid false positives in alerts.
Matos also presented the Application Programming Interfaces (APIs), the tool's verification models and their interaction with the official documentation of the global coffee trade, such as the certificates of origin of the International Coffee Organization (ICO), and their link to the Federal Government's Single Portal, as well as the availability of public data and official sources, such as the mandatory Rural Environmental Registry (CAR).
Within the framework of the meeting, the entities representing sectors that export products covered by the EUDR forwarded a document that contains consensual issues and their concerns regarding the implementation of the European Union Regulation for these exporting segments.
As a way forward, the creation of a working group was formalized with representatives of government agencies and the private sectors that participated in the meeting, the commitment to deepen the dialogue with the European Commission and the European bodies linked to the EUDR was made and, finally, to follow the work of the government and the class entities, for the EU to consider and recognize the advances and particularities of each segment that exports products covered by the Regulation.
Additionally, in response to the EUDR requirements, the certifying agency, 4C, has announced that their Portal is being enhanced with state-of-the-art risk assessment procedures, incorporating satellite image interpretation for forest and deforestation. This is complemented by an extensive data set covering national legislation, human rights, claims by indigenous peoples, corruption indices, and information on law enforcement.
The application of 4C certified EUDR Coffee is available for all 4C Units on a voluntary basis before being integrated into the revision of the 4C System in 2025. This means that from 1st of January 2025 all 4C certified coffee will comply with the additional EUDR criteria.
The Cooperativa Regional de Cafeicultores em Guaxupé (Cooxupé), located in the South, Cerrado and Matas de Minas regions in the state of Minas Gerais, and in the Vale do Rio Pardo in the state of São Paulo, represents a cooperative with over 19,000 members. The majority, accounting for 87.5%, are family farmers and small producers. With a strong commitment to producing increasingly sustainable coffee, Cooxupé places a significant emphasis on adhering to international standards and certifications.
Cooxupé is now leveraging 4C’s comprehensive solutions to ensure compliance with the European Union Regulation on Deforestation-free Products (EUDR). 4C offers a holistic package encompassing self-assessment, deforestation-free verification, supply chain mapping, traceability, and support for due diligence statements. For Cooxupé, a customized approach was developed using Cadastro Ambiental Rural (CAR) data as a baseline for an in-depth deforestation assessment of the entire consolidated area within the properties, for all producers and properties certified by 4C.
Throughout this collaborative project, 4C has played a pivotal role in assessing deforestation while respecting the unique characteristics of the Brazilian reality, particularly in relation to the National Forest Code. The team has diligently orchestrated the necessary arrangements to align with the stringent EU standards. This commitment underscores 4C's dedication to promoting sustainability and compliance in the Brazilian coffee sector and beyond.
4C is currently also conducting several pilots on our solution for EUDR compliance in coffee growing regions in Africa and Asia.
Alexis Rubinstein
The StoneX Group Inc. group of companies provides financial services worldwide through its subsidiaries, including physical commodities, securities, exchange-traded and over-the-counter derivatives, risk management, global payments and foreign exchange products in accordance with applicable law in the jurisdictions where services are provided. References to over-the-counter (“OTC”) products or swaps are made on behalf of StoneX Markets LLC (“SXM”), a member of the National Futures Association (“NFA”) and provisionally registered with the U.S. Commodity Futures Trading Commission (“CFTC”) as a swap dealer. SXM’s products are designed only for individuals or firms who qualify under CFTC rules as an ‘Eligible Contract Participant’ (“ECP”) and who have been accepted as customers of SXM. StoneX Financial Inc. (“SFI”) is a member of FINRA/NFA/SIPC and registered with the MSRB. SFI is registered with the U.S. Securities and Exchange Commission (“SEC”) as a Broker-Dealer and with the CFTC as a Futures Commission Merchant and Commodity Trading Adviser. References to securities trading are made on behalf of the BD Division of SFI and are intended only for an audience of institutional clients as defined by FINRA Rule 4512(c). References to exchange-traded futures and options are made on behalf of the FCM Division of SFI . StoneX is a trading name of StoneX Financial Ltd (“SFL”). SFL is registered in England and Wales, Company No. 5616586. SFL is authorized and regulated by the Financial Conduct Authority [FRN 446717] to provide to professional and eligible customers including: arrangement, execution and, where required, clearing derivative transactions in exchange traded futures and options. SFL is also authorised to engage in the arrangement and execution of transactions in certain OTC products, certain securities trading, precious metals trading and payment services to eligible customers. SFL is authorised & regulated by the Financial Conduct Authority under the Payment Services Regulations 2017 for the provision of payment services. SFL is a category 1 ring-dealing member of the London Metal Exchange. In addition SFL also engages in other physically delivered commodities business and other general business activities which are unregulated and not required to be authorised by the Financial Conduct Authority. StoneX Group Inc. acts as agent for SFL in New York with respect to its payments services business. StoneX APAC Pte. Ltd. acts as agent for SFL in Singapore with respect to its payments services business. ‘StoneX’ is the trade name used by StoneX Group Inc. and all its associated entities and subsidiaries.
Trading swaps and over-the-counter derivatives, exchange-traded derivatives and options and securities involves substantial risk and is not suitable for all investors. Past performance of any futures or option is not indicative of future success. Indicators are not a trading system and are not published as a specific trade recommendation. The information herein is not a recommendation to trade nor investment research or an offer to buy or sell any derivative or security. It does not take into account your particular investment objectives, financial situation or needs and does not create a binding obligation on any of the StoneX group of companies to enter into any transaction with you. You are advised to perform an independent investigation of any transaction to determine whether any transaction is suitable for you. No part of this material may be copied, photocopied or duplicated in any form by any means or redistributed without the prior written consent of StoneX Group Inc.
© 2024 StoneX Group Inc. All Rights Reserved.
Discover more insights
