Thai Rubber Industry Faces EUDR Compliance Deadline
Thailand, the world’s largest producer of natural rubber, is racing to comply with a new EU anti-deforestation law set to take effect in 2027, according to a report by Mongabay’s Carolyn Cowan. The country’s rubber exports to the EU increased by approximately 65% from 2019 to 2024, making compliance critical for maintaining access to European markets.
The EU Deforestation Regulation (EUDR) Requirements
Starting January 2027, rubber suppliers must provide geolocation data and legal documentation proving that their products did not originate from land deforested after December 31, 2020. This requires a massive shift for Thailand’s historically fragmented supply chain, where rubber from various sources is often mixed without records of origin.
Challenges in a Fragmented Supply Chain
The supply chain involves millions of smallholder farmers who sell to middlemen. These intermediaries combine rubber from different batches before selling to processing factories that produce final goods for the EU market. According to Stefano Savi, director of the Global Platform for Sustainable Natural Rubber, this supply chain will need a complete overhaul — calling it a “revolution.”
“Five years ago, supply chain traceability in natural rubber was considered impossible due to the fragmented nature of the industry,” Savi said.
Technology-Based Solutions
Private intermediary firms are stepping in with tech-based solutions. One such firm, Agriac, uses its Traztru platform to georeference farm plots and maintain traceable digital records of land deeds and sustainable farming operations. This includes details of the producers and every rubber batch sold to processing factories.
Agriac exclusively works with smallholders who meet the standards of the Forest Stewardship Council’s (FSC) voluntary sustainability scheme. Many of these farmers are registered under cooperatives that ensure collection centers maintain strict separation of compliant and noncompliant rubber, said Maiprae Loyen, Agriac’s managing director.
“As sustainable markets have grown, it’s only the big guys who have been able to profit,” Maiprae said. “We want to change that.”
Remaining Hurdles and Risk of Exclusion
The Rubber Authority of Thailand has already mapped a substantial portion of rubber-growing areas, but significant hurdles remain. Many smallholders operate without formal land titles, often through informal agreements with the government. Experts warn that without continued technical and financial support, these vulnerable producers risk exclusion from the high-value EU market.
Banner image: Lump rubber, a raw material used to manufacture tires, dries in a collection center in Krabi province in Thailand. It will soon be transported to a factory for further processing and export. Image by Carolyn Cowan/Mongabay.
This article is based on reporting by Carolyn Cowan for Mongabay.