Itochu, a prominent Japanese trading house, is set to implement an innovative tracking system aimed at assisting rubber farmers in Southeast Asia. This program is a direct response to the forthcoming European Union anti-deforestation law, the EUDR. It will be in force imminently, spurring immediate action. Yet the new legislation establishes significant obstacles to rubber smallholder producers. This is particularly focused on because tire companies rely on natural rubber to provide around 70% of the world’s rubber supply.
The EUDR places onerous due diligence obligations on companies whose products are imported into the EU. Importers need to show that the rubber they are using is not deforesting. Itochu’s tracking system is a promising answer. It gives farmers the power to demonstrate that their products or rubber products they use meet stringent requirements. Itochu is piloting this system to reduce the compliance burden on smallholder producers. Most of these producers don’t have the financial means or technical expertise required to wade through the bureaucratic maze that is the EUDR.
The new RF tracking system will deploy state of the art technology to track rubber’s complete supply chain. Most importantly, it will ensure traceability from the farm to the final product. This will really help advance the concepts of transparency and traceability. This provides both manufacturers and consumers with the confidence that the rubber they use is sustainably sourced and compliant with EU regulations. Itochu’s new initiative will greatly increase buyers’ confidence in the European market. It would have the additional benefit of economically rescuing Southeast Asian smallhold rubber farmers from precariousness.
As the EUDR implementation date approaches, farmers everywhere are speaking up about the dangers. They’re concerned over how they’re supposed to adjust to these new, more stringent requirements. Itochu’s proactive approach in launching this tracking system demonstrates its commitment to supporting local agriculture and promoting sustainable practices within the rubber industry. The company is determined not only to fulfill but to exceed regulatory measures. It further encourages sustainable production practices that help keep forests and other ecosystems intact.