New deforestation regulations must consider smallholder farmers
The planet is losing its tropical forests at an increasing rate, a process largely driven by the appetite for commodity crops. The European Union and the UK are planning regulations aimed at reducing the damage, but smallholder farmers are still being left out of the conversation.
Community land in Indonesia that has been planted with oil palm next to a large forest area that has been destroyed (Photo: CIFOR-ICRAF, via Flickr, CC BY-NC-ND 2.0)
Deforestation is a global problem. Despite multiple treaties and agreements, deforestation has not stopped and is increasing. The driving force behind tropical deforestation is the cultivation of commodity crops.
These are crops that are central to people’s lives, providing everything from animal feed to tyres to chocolate bars and a morning coffee. But they are also behind the destruction of forests, which drives biodiversity loss and climate change.
The challenge of deforestation involves a significant human factor, not least the role of smallholders in commodity supply chains and how any regulatory changes will impact them and their communities. Deforestation is a question of land rights, gender rights, the loss of people’s homes, cultures and livelihoods.
During recent decades, there has also been a power shift between producing and consuming countries, with the latter exerting more influence through trade agreements, global influence and stronger economic positions.
Since 2010, economic inequality and the growing gap between rich and poor countries, coupled with the rise of emerging economies, have weakened the position of those on the margins and that of poorer countries. Climate change is increasingly impacting this growing power imbalance.
New deforestation regulations marginalise smallholders and Indigenous Peoples
Currently, several countries and regions, including the UK and the EU, are looking at regulations on deforestation. Under the 2021 Environment Act, the UK committed to tackling illegal deforestation in its supply chains with a UK deforestation regulation, while the EU has the European Deforestation Regulation (EUDR).
Any new regulation is likely to impact Indigenous and small-scale farmers, who are often overlooked and have little or no voice when these regulations are created. They must be considered and consulted when working to reduce deforestation and the impact of commodity production.
The EU regulations were primarily driven by concerns about deforestation and forest degradation. Implementation has been delayed by concerns about their impact on smallholders.
Commodities and the role of smallholders
For most commodities, large-scale businesses dominate production, processing and trading. However, some commodities are heavily reliant on smallholders. Smallholders play a vital role in four commodities linked to the EU and UK markets: cocoa (80% smallholder production), coffee (95%), rubber (85%) and palm oil (40%). Smallholders in Indonesia are expected to deliver 60% of palm production by 2030.
For each of these commodities, there are specific regions where they have a larger footprint. These are West Africa, for cocoa and Southeast Asia, for rubber and palm. Coffee is a global crop with Brazil, Viet Nam and Colombia being the leading producers.
When working to reduce deforestation, countries cannot enact simple top-down solutions because of the complex nature of supply chains and deforestation. They need to take a holistic, bottom-up approach and work with those on the ground.
They need to look at each commodity and location, with different methods needed depending on whether they are looking at industrial models or smallholder-run ones.
How long supply chains and traceability regulations affect smallholders
Complex supply chains make traceability of smallholder production difficult; it can be hard to know the exact role of smallholders and how they are linked to deforestation.
Smallholders often do not have the time, money or tools to record the location of their farms. There are questions about land rights, education and engagement. Smallholders from marginalised groups may face greater difficulties in meeting regulatory requirements and assessing impacts is made more difficult by a lack of data.
When designing legislation, it is difficult to track impacts on women and Indigenous Peoples, as they may not be engaged in the process and their rights and voices may not be heard or understood.
Most of the power in these value chains rests outside of the farm, with buyers, manufacturers, retailers and governments.
A just transition must address consumption and production patterns
A final factor is understanding the drivers behind deforestation. High consumption levels in wealthier countries are one major factor that has long driven environmental destruction around the world.
Consumption has to be part of the discussion. It is not just a case of moving away from existing, modern consumption habits, but also avoiding exporting them to other places. These wealthy countries are reliant on imports, not only for crops they cannot grow but for ones that can be grown more cheaply elsewhere.
Future food systems must ensure access to foods that cannot be produced locally, such as rubber, cocoa and coffee, are produced in a way that works with nature, while supporting a just transition in the global South. This requires a shift from industrial commodity production to local, resilient food systems that promote health and environmental sustainability.
Central to this is delivering a just transition that minimises the negative impacts while maximising positive opportunities.
Regulators must consider smallholder livelihoods
Smallholders have a unique place at the intersection of global and local supply chains. Including farmers in modern supply chains has been one of the central goals of development over the last 20 years.
Smallholder farming is a key source of livelihoods in low-income countries, especially for women. Improving the incomes, opportunities and capacities of smallholders is critical for achieving multiple Sustainable Development Goals and for building climate resilience.
When aiming to stop and reverse deforestation, it is essential to include these groups at the start of the process, to ensure any new regulations don’t harm them.
To increase the resilience of global supply chains, regulators must invite more smallholder farmers into the conversations about deforestation reduction and reforestation measures.
We must consider how to improve the terms of their participation, ensure their rights are enhanced (especially those of women) and ensure that they are able to earn sustainable livelihoods.
