Implementing coffee traceability tools: navigating challenges and opportunities

Article written by Carolina Pirola and Elisa Criscione

The rise of the digital era has ushered in a huge range of opportunities for the coffee industry, not least the possibility to trace coffees from origin to final consumer. This allows consumers to know more about their cup of joe, producers to build a brand and better tailor their coffee to their buyers, and traders to know the exact kind of coffee they are selling to their clients. Traceability gives roasters the assurance that the coffee they are buying complies with not only others’ standards but also their own. However, for this to happen, every node along the supply chain must collect and share data. For decades, this has been done on paper or Excel, limiting the shareability of the data, and causing inefficiencies. Traceability platforms can solve many of these challenges, yet choosing the one that best serves the needs of a specific actor along the supply chain while also serving as an efficient channel of communication with their teams and clients can be difficult and frustrating for everyone involved.

In the context of the traceability requirements established by the EU Deforestation Regulation (EUDR), technology providers and coffee businesses of all shapes and sizes have had to (or will have to in the immediate future) adopt solutions that support these efforts. Every month, new solutions are launched, each with its own set of services and capabilities. Picking one and, more importantly, choosing the right one for a specific business is a gargantuan task that, when done without guidance, can cost huge amounts of time and money.

This image is AI-generated through DALL·E

The complexity of selecting the right tool

Driven by the will to disentangle the complex landscape behind the selection of a traceability platform, Carla D. Martin, Founder and President of the Fine Cacao and Chocolate Institute, has led a team of researchers to create “a preliminary benchmarking of traceability and EUDR compliance solutions to support cocoa producers, cooperatives and associations, and exporters to critically compare existing solutions.” The exercise, which resulted in an article and a detailed comparison in an Excel sheet, looked at 17 digital solutions. Although their study did not look at coffee platforms, similarities abound. “Almost all of the solutions providers we identified offer services to both cocoa and coffee operators; roughly one-third of those we analyzed were first developed for coffee supply chains and later opened up services for cocoa as well,” Carla says.

When asked about the main challenges they faced when conducting the research, she noted the difficulty understanding the platforms, and the lack of standardized definitions and measures. “In the first case, solutions can be opaque to understand due to the goal of making sales. A salesperson might suggest that something is possible, but that possibility is more aspiration than reality, or it might be costly and time consuming to achieve. In the second case, (...) we found that different terms mean different things to different providers. For example, when it comes to first mile traceability. It can cover operations (typically first mile supply chain mapping, farmer profiling, field mapping, and audits such as certification and verification of ESG compliance) and traceability (price and product tracking through the chain, stock management, and processing). Some solutions may cover only some of the above possibilities, and even within these possibilities offer a limited list of capabilities.”

Deciding between an in-house solution and an off-the-shelf tool

This complexity, along with the difficulty of finding the tool that works for their business, has led many coffee companies to opt for developing their own solution in-house. For Jeffrey Bernstein, Managing Director at RGC Coffee, the decision to start from scratch was easy. “We knew there was stuff out there, but it was expensive, and (...) I wanted to make things easier for the team, more efficient. Developing a system yourself allows you to attain 100% of your needs,” he explains, echoing the sentiment of so many that have chosen that path. However, this in-house development comes with its own sets of challenges, including the need for constant, effective communication with the developing team, and money. Jeffrey is adamant: “You can’t look at it as an expense. You have to look at every change, every iteration, as an investment because it’s going to make something more efficient for the team.”

Despite the advantages described by Jeffrey, not every company can afford to build their own solution or have the bandwidth (or will) to engage in such a lengthy, iterative process. Colombian buyer and roaster Urbania Cafe started the process of developing their own platform but found little success. “The design process is complex. It requires thinking through many details and standardizing processes, which is not always easy with producers and associations,” says Impact Manager, Julian Gamboa. Beyond implementation, the project was hindered by other challenges. “We wanted to migrate to another server, but we have not been able to due to costs, and lack of compatibility and understanding of the code by the new service providers. It seems that the code developed by someone else is not so easy to manage, improve and work on by someone else.”

Many other companies face the same struggle, leaving them with only the choice of exploring the options already available in the market and trying to customize them to their needs as much as possible. Technoserve, a non-profit economic development organization, partnered with TraceX Technologies to implement a blockchain-enabled traceability solution to farmers in the Araku Valley of India. Their decision was guided by a thorough pre-assessment of the local context, and the farmers’ and buyers’ needs. “The process started with the idea that a traceability platform needs to be built for smallholder farmers so that flow of the product from each farmer is tracked. The coffee productivity from each smallholder is so small that tracking the whereabouts of the farmers’ coffee that gets mixed when sent in a bigger lot was challenging,” says Sandesh Deranna, Coffee Value Chain Lead at Technoserve. “The bigger buyers' need was to get the region/village traceability data to launch as single origin coffee, and specialty/retail buyers' need was to get individual farmer data to micro and nanolots.” This analysis was key to finding the right partner, and the organization is satisfied with the results.

Achieving success through collaboration

Although data about success and failure rates among companies adopting traceability platforms is hard to come by, it is well-known in the industry that many companies invest hundreds of thousands of dollars, and hundreds of hours in digital tools that they are finally unable to fully adopt, regardless of whether the tool was built in-house or bought off the shelf. Speaking from RGC’s experience, Jeffrey shares his advice for those starting the journey: “It’s important to talk to partners and people in the industry; connect with people, learn. Education is key in these unchartered territories.”

The consequences of selecting (or developing), implementing and adopting tools without external support can be significant and have a long-lasting impact on any company. Identifying and analyzing the goals of the business is an important first step towards making this decision, but the exercise also requires mapping the current data flow and understanding who the platform will need to connect with, what the data collection process will look like, and what aspects of the current system are not fulfilling the company’s needs and context. It’s a complex yet crucial process.

Developing a traceability tool is an excellent choice for those that have the resources and time, but other companies may have to start with customizing off-the-shelf solutions. For those who cannot start from scratch, we have put together a roundup of tools as a starting point.

Dimitra

Dimitra Technology, based in the Virgin Islands, is an agtech company dedicated to making technology accessible for all smallholder farmers. Their Connected Coffee platform offers a comprehensive traceability system that spans from seedling to warehousing. The data collection process begins at the first mile of the coffee value chain where farmers are required to register and input their individual details such as location, tree count, and farming methods into the Dimitra Connected Farmer Android-based app. This information is then visualized through the Connected Coffee platform at the buying station, where processing centers input additional information on each coffee lot. The journey of the coffee cherries is then tracked through to processing and packaging, culminating in the generation of a QR code that details each step.

Dimitra employs an integration of mobile technology, satellite imagery, AI, machine learning, and IoT, all secured on a blockchain to maintain the integrity and transparency of farmers' data. The "Connected Coffee" platform processes complex data from satellites and field sensors using AI, delivering actionable insights directly to farmers through the app on weather forecasts, projected yields and soil health, among others. For coffee, the company actively collaborates with individual farmers and farm associations across various coffee-producing countries, including the SOLOK RADJO coffee cooperative in West Sumatra, Indonesia, the Saudi Sustainable Union Trading Company (SUT) in the Jazan Valley, Saudi Arabia, AHPROCAFE, COMISUYL, and UNIOCASMO in Honduras, as well as CACI SATINAKI in Peru.

Pricing and support: Dimitra provides a free trial for users interested in exploring the platform, including a 30-day trial for their Farmer App. Subsequently, they offer two pricing models tailored to different client bases. Corporations seeking to integrate Dimitra Technology with their internal systems can opt for customized pricing, which varies based on the scope of the required adaptation work. For farmer organizations, pricing is determined by the number of licenses purchased. Their platform is available in 18 languages and their global team located in 68 countries provides direct support to clients for the correct use of the platform.
EUDR compliance: The company has developed a deforestation compliance system that tracks changes in land cover, identifying both losses and gains on specific plots. This enables the issuance of a certification of compliance, which integrates with other ERP systems and is securely recorded on the blockchain.

INATrace

INATrace is an open-source digital platform developed with the support of the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) and the IT agency Anteja. The platform focuses on improving economic outcomes for smallholder farmers and was developed collaboratively with end-users, emphasizing the inclusion of women producers. For new users, the system setup is preceded by a supply chain mapping that tailors the platform to the specific workflow of each entity.

The platform enables organizations to track various supply chain processes including pre-processing deliveries for single lots or bulk, post-harvest processing, storage inventories, payment transactions, and individual farmer data. Additionally, INATrace integrates with Beyco, allowing farmer organizations to create and sell coffee offers for their available lots on the Beyco platform. Traceability information is also accessible to consumers via QR codes. INA-Trace is hosted publicly on GitHub, allowing anyone to download, use, and modify the software to fit their specific requirements. The platform also features a mobile app for collecting field polygons. Primarily targeting coffee producer organizations, INA-Trace is used in Rwanda by entities such as the Smallholder Specialty Coffee Company RWASHOSCCO and Kaffee Kooperative, as well as by a range of other users in Honduras. From the buyer side, the main users include mostly SMEs.

Pricing and support: The INATrace source code is available for free. However, setup costs will be incurred for operations and management, including hosting infrastructure, developer fees, supply chain mapping adaptation, and dedicated user training. The platform is available in English, Spanish, German, and Kinyarwanda. Direct support for proper usage is provided by local consultants, and the INATrace website features a comprehensive set of user guides, which are available free of charge.
EUDR compliance: Key features being currently developed include the ability to record farmers' field polygons and satellite-based forest monitoring.

Sourcemap

Sourcemap is a US-based technology company that supports enterprises in managing their end-to-end supply chain requirements, including due diligence, risk management, and compliance. The company operates across various industries such as apparel, cosmetics, automotive, food, and agriculture, with a significant presence in the coffee sector. In regions like Latin America, Africa, and Southeast Asia, Sourcemap actively maps approximately one-quarter of the world's coffee supply, tailoring its technology to meet diverse client needs. The platform facilitates streamlined workflows for mapping and tracing raw materials that are blended in large volumes, transaction and shipment tracing for upstream quality assurance, and due diligence and verification for sustainability and regulatory compliance.

Data is primarily inputted by manufacturers or farmer organizations, with support available for less digitally equipped organizations. Data can also be uploaded from other data collection systems like BanQu, FarmForce, and SurveyCTO. Once the data is inputted into the system, its polygon mapping capabilities identify inconsistencies and ensure data accuracy across the supply chain. Designed to integrate with enterprise resource planning (ERP) systems, Sourcemap facilitates the issuance of purchase orders and global traceability management. It serves a diverse client base, including multinational retailers and traders like ECOM and Tchibo. A dedicated policy team ensures regulatory compliance, actively engaging with policymakers and prioritizing data privacy and security in alignment with GDPR for their client and individual producers.

Pricing and support: The platform is free for farmer organizations, with a subscription-based model for manufacturers that varies based on the volume of imports. It supports 30 languages and provides extensive training and technical support, ensuring that clients can effectively utilize the platform.
EUDR compliance: Sourcemap offers a comprehensive solution for EUDR compliance, incorporating satellite deforestation monitoring and integration with clients' ERP systems. This setup facilitates the issuance of due diligence statements required by customs for every shipment, enhancing regulatory compliance.

Trace

Trace, developed by the Dutch NGO Fairfood, is tailored to enhance transparency across global value chains, particularly in the coffee, cocoa, spice, and fruit sectors. It integrates high-tech solutions like Near Field Communications (NFC) Farmer Cards for offline transactions and advanced digitization modules with low-tech solutions adaptable to various field conditions.

When farmers sell their products to aggregators, data is captured in the Collect app & cards system, which digitizes and records transactions at the farm gate. Trace, then, supports supply chain mapping by logging transactions onto a distributed ledger, offering capabilities for attaching certifications, verifying claims, and generating batch reports and storytelling for commercial use. This system is designed to integrate with existing data collection tools, allowing for connections through simplified data uploads, such as Excel spreadsheets, and a set of APIs that facilitate the integration of external data sources like a company’s ERP.

In coffee, Trace has been employed in countries including Honduras, Rwanda, Ethiopia, and Uganda by coffee companies and cooperatives such as Fairtrade Original, where consumers are able to trace the beans all the way back to the farmer while validating commitments to fair pricing and organic sourcing. Other collaborations involve partners like Molinos de Honduras/Volcafe and Sucafina, along with UGACOF.

Pricing and support: Most projects involving Trace are supported by public-private partnerships. Recently, the organization has developed a pricing system, details of which are available upon request. The platform is primarily available in English, and comprehensive training materials for proper usage can be found online in the Fairfood Knowledge Center.
EUDR Compliance: With support from the German government, Fairfood is developing Navigate, a dashboard feature that overlays traceability and deforestation data. This tool will allow compliance and support claims of forest-free products. The functionality is set to be launched soon.

Trade in Space

Trade in Space, a UK-based company, enhances traceability in the coffee industry through its Sustainimaps platform, integrated with the Digitrak Android app. Sustainimaps offers detailed insights into deforestation, local water usage, biodiversity, and indigenous land rights. The Digitrak app streamlines data collection directly from farms, allowing for the creation of unique IDs for each lot through barcode scanning. These barcodes track coffee shipments across the supply chain, capturing essential transaction details such as volume and environmental certifications. The system also incorporates blockchain technology to ensure data integrity and transparency throughout the supply chain.

The platform is designed to be flexible; companies that have previously collected data using other systems can easily import this information into both Sustainimaps and Digitrack. Additionally, data fields within the platform can be customized to meet the specific requirements of each client. Sustainimaps also supports interoperability with other digital platforms, such as Farmer Connect and Aftership, providing a solution that covers everything from farm-level data collection to global shipping and compliance monitoring. This integrated approach ensures compliance with EU regulations and other international standards, offering a robust framework for end-to-end traceability in the coffee industry. Trade in Space primarily serves green coffee trading businesses of all sizes, from small independent importers and exporters to large multinational trading companies. The company maintains partnerships with several coffee companies, including Sucafina, Falcon Coffees, and Co. Hondu Café.

Pricing and support: Trade in Space offers a free trial for users interested in experiencing the platform before making a purchase. Extensive multilingual support is available both during the trial period and afterward to help users effectively navigate and utilize the platform. The platform is currently available in English, French, and Spanish, with additional languages available upon request.
EUDR compliance: Sustainimaps utilizes the Hansen et al. methodology, complemented by forest basemaps from the European Commission's Joint Research Centre, to provide detailed deforestation monitoring.

At DCF, we offer consulting services to support the crucial process of assessing what your needs, context and options are. Reach out at hello@digitalcoffeefuture.com if you want to know more about how we can guide you in this process.