Traceability system for capturing, processing and providing consumer-relevant information about wood products: System solution and its economic feasibility

Current research and practice reports indicate the existence of purchase barriers concerning eco-friendly products, e.g. wood products. These can be ascribed to consumers' mistrust regarding the non-observable environmental impact of wood products. To counter the mistrust, wood products are commonly endowed with eco-labels, which may be perceived mostly as a marketing tool, therefore not fulfilling their intended purpose. Current studies have shown that providing consumers with wood product information based on traceability systems increases product trust and purchase intentions, with those information items most valued by consumers being identified as well. Based on this, the paper proposes a traceability information system for the capturing, processing, and provision of product information using examples of wood furniture. Furthermore, a cost-benefit model for the proposed solution is developed. The calculations indicate the possibility of implementing traceability at the item level based on a four-layer system architecture enabling the capture and delivery of all information valued by consumers at acceptable costs. The proposed system helps to overcome purchase barriers of eco-friendly products, increasing consumers' product trust and purchase intentions

An empirical investigation of wood product information valued by young consumers

Recent media reports regarding wood products question the trustworthiness of wood origin declaration, the sustainability of production methods and the product quality. In light of this question, it becomes important to ensure consumer trust in wood and wood-based products. Current research indicates that providing product information enhances product trust and purchase intentions, while young consumers in particular seek detailed product information. However, it is necessary to determine which wood product information young consumers strongly value because providing a high amount leads to information overload. As information needs may vary between different consumer segments, the present work aims at identifying segments of young consumers and their preferred wood-product information. The importance of different wood product information items concerning the purchase decision was investigated with a German-language online survey (N = 185, age range 18–30). A cluster analysis revealed four consumer segments. Thereof, three segments (an environmentally oriented, an environmentally and quality oriented, and a quality oriented segment) valued the provision of wood product information. The preferred information types differed among the three segments. Overall, this paper provides insights into young consumers' preferences for wood product information and the consumer segments on which marketing should focus

'For the English to see' or effective change? How supply chains are shaped by laws and regulations and what that means for the exposure of modern slavery

'For the English to see' or effective change?-How supply chains are shaped by laws and regulations and what that means for modern slavery exposure Global supply chains cross and connect judicial systems, providing regulatory and legal frameworks in which supply chains operate. In this article we are investigating the impact of modern slavery laws and other parts of the legal framework surrounding Brazilian-UK beef and timber supply chains and how they interact with supply chain and market characteristics. We start with outlining the current challenges of modern slavery to supply chain management and then explain the history and application of current legal frameworks in which these supply chains operate. We then connect the legal frameworks to supply chain characteristics and dynamics and explain current business practices along the use of two case studies of market-leading businesses. This connection results in a discussion of the modern slavery exposure of the Brazilian-UK beef and timber supply chains. We provide detailed contextual information of the Brazilian-UK beef and timber supply chains and their commercial dynamics. The heterogeneity of these two agricultural supply chains enables a comparison and extraction of relevant factors that impact modern slavery exposure. We also portray mechanisms in place by leading corporations to prevent modern slavery and discuss the limitations of corporate supply chain policing in the context of their commercial realities

Quantifying timber illegality risk in the Brazilian forest frontier

Illegal logging remains widespread across the tropics, leading to extensive forest degradation and trade in illegal timber products. By adapting environmentally extended input–output modelling to timber originating from Brazilian native forests, we demonstrate how distinct illegality risks can be mapped and quantified at species-level across the supply chain. We focus on high-value ip\uea hardwood from the Amazon state of Par\ue1, a leading producer of timber and contested forest frontier. Data on logging permits and state- and national-level Document of Forest Origin licences are used to estimate illegality risks due to missing or invalid logging permits, overstated ip\uea yields or discrepancies resulting from missing inflows of legal timber. We find that less than a quarter of all ip\uea entering supply chains between 2009 and 2019 is risk-free and highlight diversified strategies for the laundering of illegal timber across geographies. While legality does not ensure sustainability, this information can be leveraged to this end by supporting improved implementation and enforcement of forest regulations

What happens when the market shifts to China? The Gabon timber and Thai cassava value chains

Rapid economic growth in China has boosted its demand for commodities. At the same time, many commodity sectors have experienced declining demand from high income northern economies. This paper examines two hypotheses of the consequences of this shift in final markets for the organization of global value chains in general, and for the role played in them by southern producers in particular. The first is that there will be a decline in the importance of standards in global value chains. The second is that there will be increasing constraints in the ability of low-income producers to upgrade to higher value niches in their chains. Detailed case studies of the Thai cassava industry and the Gabon timber sector confirm both these hypotheses. It remains to be seen how widespread these trends are across other sectors

Voluntary sustainability standards to cope with the new European Union Regulation on deforestation-free products: a gap analysis

openThe European Union (EU) recently introduced the EU Deforestation Regulation (EUDR) to tackle global deforestation and forest degradation, with a focus on key commodities such as cattle, cocoa, coffee, oil palm, rubber, soya, and wood. The EUDR mandates that operators exercise due diligence to ensure these commodities are deforestation-free and are produced in accordance with relevant legislation. Voluntary Sustainability Standards (VSS) have been widely adopted by commodity producers and suppliers to promote deforestation-free supply chains. The EUDR recognizes certification and other third-party verified schemes as sources of supplementary information for conducting risk assessments. However, questions persist regarding the extent to which these schemes can aid operators in assessing compliance with the EUDR. Furthermore, the existing literature offers mixed evidence regarding their effectiveness. This study addresses these concerns by developing an assessment framework to evaluate the suitability of schemes in covering the due diligence requirements outlined in the EUDR. The framework adopts a hierarchical structure, organized into 3 principles, 8 criteria, and 24 indicators. These indicators were categorized as fully covered, partially covered, not covered, or not applicable. Five prominent VSS schemes were subjected to this framework: Fairtrade International, Forest Stewardship Council (FSC), Rainforest Alliance, Roundtable on Sustainable Palm Oil (RSPO), and Round Table on Responsible Soy Association (RTRS). The study found that these schemes addressed several indicators outlined in the framework, but gaps in their coverage were evident too. Notably, the schemes lacked comprehensive measures to prevent deforestation and forest degradation. Their requirements primarily concentrated on natural forests, protected areas, high conservation values (HCV), and/or high carbon stock (HCS) forests. Moreover, the schemes permitted exceptions that allowed for deforestation and forest degradation, albeit in limited proportions. The assessment also revealed gaps in the schemes' coverage of the relevant legislation defined by the EUDR. These gaps were more pronounced in standards designed for actors along the supply chain (e.g., traders, processors etc.) compared to those aimed at producers (e.g., farmers and forest managers). Additionally, the schemes allowed for traceability systems where standard-compliant material could be mixed with conventional material. Except for FSC, the targeted VSS schemes did not enforce controls on conventional material entering their supply chains, increasing the risk of non-compliance with the EUDR. Therefore, such systems are not suitable for operators, as they increase the risk that commodities are associated with deforestation and non-compliance with legislation. Another significant observation was the schemes' use of soft mechanisms to address violations of their standards. Operators should ascertain that the verified parties supplying these commodities have not violate any requirements that could potentially lead to non-compliance with the EUDR. This study reinforces that these schemes do not serve as a guaranteed path to compliance with the EUDR. Therefore, operators are obligated to establish a robust due diligence system capable of fulfilling all appliable requirements. Nevertheless, schemes can still offer substantial assistance by providing on-the-ground information supported by an assurance system. For this, operators must devise strategies to address the gaps and challenges identified in this study

What happens when the market shifts to China ? the Gabon timber and Thai cassava value chains

Rapid economic growth in China has boosted its demand for commodities. At the same time, many commodity sectors have experienced declining demand from high-income northern economies. This paper examines two hypotheses of the consequences of this shift in final markets for the organization of global value chains in general, and for the role played in them by southern producers in particular. The first is that there will be a decline in the importance of standards in global value chains. The second is that there will be increasing constraints in the ability of low-income producers to upgrade to higher value niches in their chains. Detailed case studies of the Thai cassava industry and the Gabon timber sector confirm both these hypotheses. It remains to be seen how widespread these trends are across other sectors.Environmental Economics&Policies,Food&Beverage Industry,Markets and Market Access,Economic Theory&Research,Labor Policies

What happens in global value chains when the markey shifts from the north to the south?

This paper charts the evolution of financial and economic crisis in the global economy and argues that the likely outcome will be sustained growth in the two very large Asian Driver economies of China and India and stagnation in the historically dominant northern economies. Given the nature of demand in low income southern economies, it is likely to be reflected in sustained demand for commodities, with other southern economy producers in global value chains being forced into lower levels of value added. Standards are likely to be of considerably reduced significance in value chains feeding into China and India. These issues are considered in the light of evidence drawn from the experience of Thai exporters of cassava, and Gabonese exporters of timber

Certifying sustainability: opportunities and challenges for the cattle supply chain in Brazil

Up to 75% of deforestation in Brazil is associated with cattle ranching. To reduce forest conversion and increase sustainability in the cattle supply chain, government, private sector and civil society support interventions based on combinations of institutions and policies, incentives, and information and technology. In this paper we analyse the observed and expected interactions among the Sustainable Agriculture Network (SAN) Standard for Sustainable Cattle Production Systems certification program and other interventions associated with livestock and deforestation in Amazonia. Semi-structured interviews were conducted with cattle supply chain key actors, who identified the opportunities and barriers to the development and scaling of the SAN cattle program. The SAN cattle program has set a new high standard for sustainability, demonstrated the viability of certifying the cattle supply chain, and created new incentives and markets. However, the program has certified few farms to date. Other interventions are playing a critical role in incentivizing farms towards enhanced sustainability. Interventions that complement progress towards the SAN program include those that help producers to comply with forest laws or provide farmers with access to information and technology to improve their practices. Other interventions may constrain the program, for example by competing with the standards in the marketplace. Greater coordination among interventions may catalyze a more coherent, strategic approach to enhanced sustainability

The European Union and United Kingdom's deforestation-free supply chains regulations : implications for Brazil

This paper analyses the potential implications of the proposed European Union Deforestation Regulation (EUDR) and the recently adopted United Kingdom (UK) legislation on deforestation-free supply chains (henceforth ‘the legislation’) for different stakeholders in Brazil. These regulations intend to address global commodity-driven deforestation and forest degradation by ensuring that targeted commodities and products placed on (or exported from) markets are of minimal risk of being associated with - in the EU - deforestation and forest degradation or - in the UK - illegal deforestation. The paper examines potential compliance readiness in cattle, cocoa, coffee, palm oil, soybean and tropical timber supply chains in Brazil, indicating specific challenges that may arise. Through the construction of a “Compliance Likelihood Index”, our research provides comparable indications to policymakers on sectors and stakeholders that may need stronger support to meet the requirements, in order to maintain Brazil's access to EU and UK markets. The paper indicates that coffee is the sector with the highest level of incentivization and smallest hurdles for compliance, while the cattle sector may face stronger challenges to rapidly adjust its production system towards a deforestation-free value chain and prove compliance. Results of our analysis also highlight the need for collaboration between the EU/UK and Brazil in order to promote alignment between domestic and demand-side legislations so that they are mutually reinforcing. Results of this exercise, which has a focus on the producer-country view of demand-side legislation, will contribute to discussions on the merits of different approaches to strengthen the governance of deforestation-risk commodity trade