Traceability systems and their role in regulatory compliance for agricultural products: Lessons learned from the Honduran coffee value chain

This study examines the challenges and opportunities in transforming Honduras’s coffee sector into a sustainable and resilient value chain, addressing the pressures from climate change and the European Union Deforestation Regulation (EUDR). Exploring how smallholders and cooperatives navigate these challenges, it focuses on barriers to adopting sustainable practices and traceability tools and investigates how stakeholders can collaborate to enhance sustainability and resilience. The study addresses three key questions: (1) What sustainable practices are currently implemented in the Honduran coffee value chain, and how effectively do they address environmental and economic challenges? (2) What barriers do smallholders and cooperatives face in adopting sustainable practices and implementing digital traceability tools? (3) How can stakeholders collaborate to improve resilience while promoting long-term sustainability in the coffee sector? Drawing on findings from 18 semi-structured interviews conducted by Melo-Velasco et al. (2023) along the Honduran Western Coffee Route, the study employs Braun and Clarke’s (2006) thematic analysis, supported by NVivo (Version 14, Lumivero) software to examine stakeholders’ narratives. Key themes include barriers to sustainability adoption, the role of cooperatives, and the potential for public-private partnerships. The analysis highlights the critical need to build trust in data sharing, governance, and sustainability-driven initiatives. These platforms can strengthen alignment across the sector by ensuring that underrepresented groups have a voice and foster more inclusive solutions. The findings reveal that smallholders face significant barriers, such as high implementation costs, fragmented traceability systems, and limited financing and technical support access. Although cooperatives are essential to advancing sustainability, their reach is limited, 80% of the smallholder population remain unaffiliated and excluded from key resources. The study underscores the complex relationship between sustainability, profitability, and productivity, particularly under the combined pressures of climate change and regulatory compliance. The research proposes a phased strategy to address these barriers, focusing on capacity building, cooperative empowerment, and the development of integrated traceability systems. Honduras can build a more resilient coffee sector by fostering stakeholder collaboration and ensuring long-term sustainability and economic viability.