Compliance and Sustainability Workshop for African Agricultural Exporters & Producers Navigating EUDR,CSDD and LkSG EU-Regulations: Human Rights & Food Security Standards Due Diligence in Agricultural Production

1. New EU Regulations: Impact on Kenyan and African Exporters

The Looming Deadline: EUDR (31st Dec 2024) and CSDDD (1st Jan 2026)

Kenyan and African agricultural exporters face a critical juncture with the impending deadlines for the EU Deforestation Regulation (EUDR) on 31st December 2024 and the Corporate Sustainability Due Diligence Directive (CSDDD) on 1st January  2026.

These regulations aim to ensure that imported commodities are not linked to deforestation or human rights abuses.

 

Key Challenges and Solutions:

The workshop organized by the Food Security Standard (FSS) highlighted the limited awareness and preparedness among Kenyan stakeholders regarding EUDR and CSDDD.

"It's worth noting that participants observed that, as the EUDR and CSDD deadlines approached, many Kenyan importers and producers had Little to NO knowledge of these regulations and their implementation.

In fact, most were more familiar with the EU-Kenya Economic Partnership Agreement (EU-EPA)-effective 1st July 2024  than with EUDR and CSDD.

{Read more on EU-Kenya EPA on our past Aricles: https://k254nairobinews.com/search.php?q=EU}

Hence, participants advocated for:"

  • Collaboration: Increased collaboration between government ministries (especialy Ministries of Agriculture,Trade,and MSME's), businesses, and NGOs is crucial to facilitate smooth implementation.
  • Information Dissemination: Effective strategies are needed to spread awareness about the regulations through Media, workshops, and training programs.
  • Capacity Building: Supporting small-scale farmers with training and resources to comply with the regulations.
  • Local Dialects: Translation of information into local dialects can enhance understanding and reach a wider audience.

What are these EUDR and CSDDD  Regulations and how do they affect you?

  • EUDR (EU Deforestation Regulation): This regulation restricts the import of certain agricultural products like:
    cattle, coffee, cocoa, soy, palm oil, timber, and paper, if linked to deforestation after the 31st December 2024 deadline.

  • CSDDD (Corporate Sustainability Due Diligence Directive): This directive requires companies to identify and address environmental and human rights risks within their supply chains. It will be implemented in stages, with larger companies being the first to comply.

Consequences of Non-Compliance with EUDR and CSDDD

EUDR (EU Deforestation Regulation) Non-Compliance:

  • Financial Penalties: Severe fines, potentially up to 4% of annual turnover.
  • Market Access Restrictions: Products may be barred from the EU market, leading to significant financial losses.
  • Reputational Damage: Negative publicity and loss of consumer trust.
  • Supply Chain Disruption: Difficulty in sourcing compliant materials and maintaining relationships with suppliers.
  • NB: the goods can be Totally Destroyed or Returened to port of Origin if they fail complying to the regulations

Sources:

CSDDD (Corporate Sustainability Due Diligence Directive) Non-Compliance:

  • Legal Actions: Potential lawsuits and legal proceedings.
  • Brand Damage: Negative public perception and loss of consumer confidence.
  • Investor Pressure: Increased scrutiny from investors and shareholders.
  • Supply Chain Disruption: Difficulty in maintaining relationships with ethical and sustainable suppliers.

Sources:

Both EUDR and CSDDD non-compliance can result in:

  • Increased operational costs: Implementing due diligence measures and addressing non-compliance issues can be expensive.
  • Competitive disadvantage: Companies that fail to comply may face challenges in competing with those that have implemented sustainable practices.
  • Regulatory scrutiny: Increased scrutiny from regulators and authorities.

Impact of EUDR & CSDD on Kenyan and African Exporters:

  • Compliance Challenges: Meeting the requirements of these regulations might pose challenges for some exporters, especially small-scale farmers with limited resources.

  • Market Access Issues: Non-compliance could lead to blocked market access for Kenyan and African exports to the European Union, a significant trading partner.

 

Opportunities from EUDR:

  • Environmental Protection: EUDR promotes sustainable practices and combats deforestation.

  • Business Opportunities: Companies demonstrating compliance can gain a competitive edge in the global market.

  • Data-Driven Insights: Implementing due diligence practices can lead to better traceability and data collection within supply chains.

 

2. Food Security Standards (FSS): Balancing Profitability and Sustainability

Food Security Standards: A Boon for Farmers and Consumers

The recent FSS workshop emphasized the importance of Food Security Standards (FSS) in achieving food security and responsible agricultural practices. While navigating financial constraints is a reality, FSS offers numerous benefits for both farmers and consumers.

Challenges Faced:

The workshop noted concerns regarding:

  • Financing: Limited access to finance for implementing FSS compliance measures.

  • Minimum Support: Concerns about insufficient government support for farmers transitioning to sustainable practices.

  • Cost Factor: Implementing FSS might seem expensive for some farmers.

Opportunities Offered by FSS:

  • Food Security for Farmers and Workers: FSS promotes fair labor practices and decent working conditions, contributing to food security for farmers and agricultural workers.

  • Poverty Eradication: FSS supports sustainable practices that can improve yields and incomes, leading to poverty reduction among farmers.

  • Healthy Food Access: FSS promotes safe and healthy food production practices, ensuring consumers have access to nutritious food.

  • Business-to-Business Support: FSS facilitates collaboration within agricultural supply chains, enabling businesses to share best practices and manage risks.

  • Climate Change Mitigation: By promoting sustainable practices, FSS can contribute to mitigating climate change and its impact on food security.

Germany's Supply Chain Due Diligence Act (LkSG)

Overview:

The German Supply Chain Due Diligence Act (LkSG), which came into effect on January 1, 2021, is a pioneering piece of legislation that mandates companies operating in Germany to conduct due diligence to ensure that their supply chains are free from human rights abuses and environmental harm. This law aims to promote responsible business practices and protect human rights throughout global supply chains.

Non-Compliance Consequences:

Failure to comply with the LkSG can lead to severe consequences, including:

  • Fines: Companies can face substantial fines, potentially reaching millions of euros.
  • Legal Actions: In cases of severe violations, companies may face legal proceedings.
  • Reputational Damage: Non-compliance can tarnish a company's brand and reputation, leading to loss of consumer trust and investor confidence.
  • Market Access Restrictions: In some cases, non-compliance may limit a company's ability to do business in Germany or other markets that have similar regulations.

Impact on Companies:

The LkSG has significant implications for companies operating in Germany or sourcing from suppliers in countries with a higher risk of human rights abuses or environmental harm. These companies must:

  • Conduct Due Diligence: Identify and assess potential risks within their supply chains.
  • Mitigate Risks: Implement measures to address and mitigate identified risks.
  • Document Efforts: Maintain records of their due diligence activities.

Sources of Information:

For more information on the LkSG and its requirements, you can consult the following resources:

Call to action for African Exporters,Producers and Farmers:

  • Investing in FSS compliance can be viewed as a long-term investment.

  • Ultimately, it leads to a more resilient and sustainable agricultural sector, benefiting both farmers and consumers.
  • By addressing the challenges and maximizing the opportunities presented by FSS, Kenya and Africa can move towards a future of food security and responsible food production.
  • Simply Stay Informed: Kenyan and African exporters must stay informed about these evolving regulations to ensure continued market access and contribute to a more sustainable future.

 

Key Organizers & Sponsors of the Worshop:

This Educative workshop was organized and sponsored by:

1. Welt Hunger Hilfe (WHH):

Welthungerhilfe One of the largest private aid agencies in Germany; politically and religiously independent. The organization fights for “Zero Hunger by 2030”. Since being founded in 1962, it has provided funding of EUR 5.07 billion for more than 12,128 overseas projects about 72 countries.

Visit Website https://www.welthungerhilfe.org/

 

2. Food Security Standards (FSS):

The FSS supports companies in meeting mandatory corporate due diligence requirements and internationally recognized principles. In addition, it supports companies in identifying and mitigating human rights risks related to food by implementing the FSS at the production level.

Applying the FSS in sustainability certification systems ensures that farmers, workers, and neighbouring communities are food secure.

Visit Website: https://www.foodsecuritystandard.org

 

3. Meo Carbon Solutions (MCS):

Meo Carbon Solutions is an independent consulting company with a focus on sustainable development solutions, smallholder empowerment and social compliance, sustainability certification and carbon footprint improvement. Meo is working on a global scale and supporting the application of the FSS.

MCS provides individual solutions for various sectors to improve carbon footprints, increase sustainability and empower smallholders in supply chains.

Visit Website: https://www.meo-carbon.com/ 

 

4. FNR- (Fachagentur Nachwachsende Rohstoffe e. V):

FNR is the central coordinating institution for funding research, development and demonstration projects in the field of renewable resources.

NB: Also Deals with Bio Energy.

FNR funds and supervises about 400 projects per year

These projects focus on elements of the bioeconomy excluding general food production (bio-based economy). Additionally, FNR (Fachagentur Nachwachsende Rohstoffe e.V.) funds projects in the framework of the Forest and Climate Fund, and serves as a host to the Competence Centre for Forests and Wood.

In addition to these activities, FNR regularly administers information and recommendations to a wide range of different target groups, while simultaneously supporting the market introduction of products produced from renewable resources. By means of various publications and events, FNR ensures that specialists stay informed regarding the latest scientific developments, while also increasing public awareness of renewable resources and bio-based products.

Visit Website: https://international.fnr.de/

 

5. German’s Federal Ministry of Food and Agriculture (BMEL):

The German Federal Ministry of Food and Agriculture (BMEL) is responsible for German food and agricultural policy.

Its mandate is to create a balanced, healthy diet, safe food, clear consumer information when buying food and a strong and sustainable agricultural, forestry and fisheries sector.

The BMEL also aims to create good prospects in rural regions, promote animal welfare and improve Global Food Security.  

The departments of the BMEL are:

 

The following Notable Organizations Participated in the Workshop:

1. WHH Kenya- Welt Hunger Hilfe (Welthungerhilfe):

A branch of Welt Hunger Hilfe (Welthungerhilfe) aforementioned

 NB: The organization fights for “Zero Hunger by 2030”. Since being founded in 1962, it has provided funding of EUR 5.07 billion for more than 12,128 overseas projects about 72 countries.

Visit Website: https://www.welthungerhilfe.org/our-work/countries/kenya

 

2. Eni Energy-  A lead Italian Firm:

Agip Kenya was the first Eni company to operate in the field of import and distribution of oil products and by-products, nitrogen fertilisers, and synthetic rubber from the 1960s. Today, as Eni Kenya, Is also engaged in exploration activities in the offshore  in six blocks located in the deep waters of the Lamu Basin, off Mombasa.

Kenya is the first African country in which it built an oilseed pressing plant for the extraction of vegetable oil for the production of biofuel from Casor Oil seeds. Located in Wote, Makueni County, the centre, also known as an agri-hub, has a capacity of 15,000 tons per year and, since 2022, has been supplying the Eni biorefinery in Gela,Italy

Visit Website: https://www.eni.com/en-IT/actions/global-activities/kenya.html

 

3. Ado Fresh Kenya:

A lead Kenyan  Exporter of Fresh Agricultuaral Produce.

This includes Avocados-Fuerta & Hass,Mangoes,Carrots and many More

Ado Fresh is a department of the larger Ado Holdings Ltd which was formed and incorporated in the government of kenya in 2005.

Visit Website: https://adoholdings.co.ke/  

 

4. Fairtrade:

Fairtrade is the most recognised and trusted sustainability label in the world. It is a global organisation that is co-owned by more than 2 million farmers and workers who earn fairer prices, build stronger communities, and have control over their futures.

In Eastern Africa Region,it has Presence n Kenya,Uganda,Tanzania,Rwanda & DRC and Globally.
Visit Website: https://www.fairtrade.net/

 

5. Coffee Management Services Ltd-Kenya:

Coffee Management Services Ltd (CMS) is a leading agribusiness service provider offering a wide range of services in the coffee sector in Kenya and wider East African Region.

CMS began its operation in 2006 and is a licensed Management Agent, Marketing Agent and Warehouseman.

Currently CMS is managing estates of approximately 2500 ha of plantations which are producing 8% of total Kenyan production.

NB: CMS is one of the leading Coffee marketing agents in Kenya having marketed over 11,360 MT (26% of total Kenyan Production) in the 2017/18 Coffee season.

Through its consultancy services, CMS has so far supported farmers with over 3000ha of plantation coffee in Ethiopia and Rwanda.

NB: It is also part of the EUDR working group for Kenya’s Trade Ministry.

Visit Website: http://coffeemanagement.co.ke/

 

6. Iren GrowthPad:

IREN Growthpad is a dealer in premium Dried African Indigenous Vegetables that Power your wellness using superfoods, which offer superior nutrition and convenience.

Visit Website: https://growthpad.irenkenya.com/

 

7. Exports:

 

8. K254 Media Conglomerate Africa Ltd:

K254 Media  is a leading African Media Conglomerate offering Strategic Media, PR, Marketing & Advertising, Events Management, Research, Data Analytics, AI, ICT & Innovation, Graphics Design, Climate Sustainable Solutions, Investigative Journalism and Advocacy Across Africa & Globally

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Compiled by:

Muhoro Pius W.

Business,Energy,Climate and International Trade Editor

Email: editor@k254nairobinews.com

 

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Date: 16 September 2024    Comments: 2

Comments - 2

Laura Mack (FSS Team)

Dear Ngugi Thuo, thank you for your comment. If you are interested to learn more about the FSS, check out our webiste www.foodsecuritystandard.org or write an email to us directly info@foodsecuritystandard.org

Ngugi Thuo

This is an excellent informative Article... It will highly assist in Supporting SME's and Producers Needs in meeting EU Standard. Meanwhile,how can we get involved in such Forums?


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