Thailand is the world's largest producer of natural rubber and relies on approximately 1.7 million small-scale farmers for 90% of its supply. To comply with the new EU anti-deforestation law, rubber suppliers must provide geolocation data and legal documentation proving their products did not originate from land deforested after December 31, 2020.
With the entry into force of the EU Deforestation Regulation (EUDR) in January 2027, Thailand's rubber industry will need to undergo a significant change in its supply chain, which is historically fragmented. Rubber from different sources is often mixed without requesting records of its origin.
According to the Global Platform for Sustainable Natural Rubber, the change will be a 'revolution'. 'Five years ago, supply chain traceability in natural rubber was considered impossible due to the fragmented nature of the industry,' said Stefano Savi, director of the Global Platform for Sustainable Natural Rubber.
To bridge the compliance gap, private intermediary firms are stepping in with tech-based solutions. One such firm, Agriac, uses its Traztru platform to georeference farm plots and provide traceability data.
Agriac is just one example of how companies are working to help small farmers comply with the new EU rules. In addition, Agriac is working to help small farmers improve the efficiency of their farms and reduce their environmental impact.
The change in Thailand's rubber supply chain is an important step towards reducing deforestation and promoting sustainability in the rubber industry. The EU is one of the main markets for Thai rubber, and the implementation of the EUDR is an example of how international organizations can work to promote sustainability and reduce environmental impact.
The change in Thailand's rubber supply chain is also an example of how companies can work to help small farmers improve the efficiency of their farms and reduce their environmental impact. Agriac is working to help small farmers improve the efficiency of their farms and reduce their environmental impact, and is an example of how companies can work to promote sustainability in the rubber industry.