At Solidaridad Learning Session, Experts Discuss and Debate Pathways for Inclusive Sourcing and Traceability

Inclusive sourcing and traceability were the focal points of a webinar organised by Solidaridad Asia on 7 February 2024. This learning session saw insightful discussions led by industry experts, shedding light on crucial issues and opportunities surrounding sustainable procurement strategies.

In his opening remarks, Shatadru Chattopadhayay , Managing Director, Solidaridad Asia , stressed on the profound impact of procurement decisions on environmental health, human and community rights, and economic sustainability. “For us, sourcing and traceability are not just buzz words, they are the pillars of sustainable and ethical business practices that can lead to profound societal and environmental benefits,” he stated, highlighting the need for companies to grasp the broad implications of their procurement decisions which affect the economic well-being of farmers and workers. Building on Shatadru’s observations, Prashant Pastore , Head of Water and Sustainable Agricultural Programmes at Solidaridad Asia, illustrated the transformative impact of incentivising sustainable practices in the form of input subsidies and fair compensations, on farmers’ livelihoods. Citing the organisation’s achievements in empowering smallholders across commodities such as castor, cotton and sugarcane, Prashant raised the call for more inclusive sourcing initiatives.

The conversation then shifted towards challenges in implementing traceability initiatives in global supply chains. Reflecting on his past experiences with organisations such as Bridgestone and commodities such as rubber and cashew, Fahad I. , CEO of iFarmer Technologies, spoke about the “difficulty in finding buyers” for traceable products, especially in local circles (for buyers far away, the sale could only be facilitated through intermediaries, which is, again, a less-than-ideal scenario). This directly ties into the “issue of quantity” (as Fahad put it), whereby it becomes difficult for producers to sell their traceable, sustainable products in bulk, in the absence of sufficient demand or buyers. Further complicating matters is the price of technologies and complicated supply-chain logistics. Fahad, therefore, suggested the implementation of technologies such as blockchain and QR systems in overcoming these barriers, despite inherent challenges such as lack of technical expertise in developing countries and the need for significant investments up front.

Selim Reza Hasan , Country Manager, Solidaridad Bangladesh, provided rich insights into efforts at promoting sustainable mango and shrimp farming in the country. He highlighted aspects such as the training of experts and entrepreneurs, and building connections and working with farming clusters, in the development of a model that benefits smallholders. He also recommended working closely with international organisations and partners to facilitate certified access to larger markets, as well as fostering multi-stakeholder collaborations. Selim concluded by suggesting that government incentives such as subsidies could play a role in inspiring farmers and stakeholders to adopt practices, such as documentation, to advance the causes of traceability.?

Concurring with Selim’s remarks to a certain extent, Fahad opined that “traceability should be led by the private sector, with the government laying down the basic framework [of operations].” He also added that governments should help in reducing the “initial/entry barriers” for farmers to adopt traceable technology, before warning that excessive granting of subsidies can create a situation where “everyone works for the subsidies and nothing else.” To further elaborate his point, he referred to a successful case study from Thailand, where farmers practise “self-reported traceability”, which reduces costs massively for farmers practising proper and adequate documentation. Additionally, the government provides the incentives to the farmers directly, and not to the company, which further motivates the cultivators to learn more about and implement sustainable practices themselves.?????

A critical topic on the webinar agenda was the impact of landmark regulations such as the European Union Corporate Sustainability Directive (EU CSDDD) and the European Union Deforestation Regulation (EUDR) on the agricultural supply chains. Elaborating on the current situation, Myrtille Danse , Head of Corporate Engagement and Partnerships, Solidaridad Europe, first spoke about the demand for ‘quality produce’ among European and American buyers and markets, and the economic, market-based ‘opportunities’ such a preference creates for Asian farmers. She mentioned the beneficial intentions and purposes of these regulations for the environment, farmers and supply chains, before acknowledging that the requirements of these norms can indeed be quite stringent, particularly for smallholders.?

Myrtille emphasised the importance of collaborations, and the need to “use data as feedback loops for producers and processors”, so that they can identify areas for genuine improvement with regards to the quality and volume of sustainable produce, and not simply meet compliance and accountability targets and leave it at that. While the panellists agreed the directives leave ample opportunities and scope for productive work, especially in cases where a favourable alignment between national and international agendas can be negotiated/worked out, Myrtille added an important caveat – “What are the traceability systems ultimately going to be used for?”

In his concluding remarks, Nitin Rao , Lead, Planning and Innovation at Solidaridad Asia, highlighted the one element that should be at the heart of all traceable and inclusivity initiatives: trust. Cautioning against the risks and pitfalls of digital colonisation, he emphasised the need for civil society organisations to challenge rigid, preordained conceptions and structures imposed upon us (capitalism being a case in point), and prioritise “benefit optimisation” over “profit maximisation” to foster sustainable supply chains.