Traceability in coffee and tea is entering a new phase. What was once largely associated with certification logos and country-of-origin labelling is becoming a far more detailed and data-driven exercise. Regulatory change is accelerating that shift. The EU Deforestation Regulation (EUDR), for example, requiring operators placing coffee on the European market to provide geolocation data — is shifting traceability from region-level disclosure to plot-level geolocation and land-use verification.

For coffee supply chains built around thousands of smallholder farms, often managing plots smaller than a hectare, traceability requirements introduce significant operational complexity. Tea supply chains face similar challenges, where it can be grown on large estates with centralised systems, but also produced by independent smallholders feeding into regional factories. Raw material frequently passes through multiple aggregation points before export, and blending across origins is common to maintain flavour consistency.

Traceability in this context is not a single but a layered system spanning thousands of farms, intermediaries, mills, exporters and importers, and packers. Each layer adds an operational challenge.

Where Legacy Systems Still Dominate and Break Down

Despite growing digitalisation, manual processes remain common, with 82 percent of brands still using manual tools to manage new product development (according to a 2025 TraceGains report). In tea-producing regions, field-level plucking volumes, agrochemical application and factory maintenance are often documented in handwritten ledgers.

While manual systems are not inherently weak, challenges arise when speed and scale become critical. Take regulatory requirements as an example. These may demand rapid traceback across large shipments, something paper based systems are not designed to deliver efficiently. Smallholder farmers also possess generational expertise in cultivation and quality management, yet formalised digital data capture is not always embedded at farm level.

That said, digital technologies are progressing. In some tea-producing regions, smallholder farmers use ID systems linked to digital harvest records and electronic payment platforms. Direct bank transfers improve transparency and reduce reliance on cash-based systems.

At an industry level, new tools are emerging to address regulatory requirements more systematically. For instance, the German Coffee Association launched EUDR Coffee Check, a platform designed to help German coffee companies comply with the new deforestation rules and meet wider sustainability requirements. In addition to supporting geolocation and due diligence processes, the tool provides automated assessments of human rights and governance risks using internationally recognised datasets from the International Labour Organization.

The AI Opportunity: Where is It Actually Adding Value?

At its core, AI can help companies process complex datasets with a dexterity older systems struggle to manage. Regulatory requirements such as EUDR generate large volumes of information, from GPS coordinates to farm polygons to shipment records and beyond. AI tools can analyse datasets rapidly, identifying inconsistencies or overlaps that would be time consuming to detect manually.

AI is also being applied to food fraud detection and authenticity verification. Food fraud is estimated to cost between USD $100-150 billion annually (per ScienceDirect.com). Machine learning models are being applied to analyse chemical fingerprints, spectral data and production needs, helping to identify anomalies that may indicate adulteration. Research reported in ScienceDirect.com also points to the integration of AI with IoT (Internet of Things) sensors and blockchain systems to support more secure traceability. Sensors collect real-time data across production and transport, AI analyses that information for irregular patterns, and blockchain frameworks help ensure records are tamper resistant.

At farm level, there is also a growing interest in integrating satellite imagery, drone data and operational records. These systems can monitor land-use change and identify unusual yield variations. The objective is to strengthen both compliance oversight and production insight.

Looking Ahead

Technology is expected to make traceability more efficient over time, reducing friction in audits and product traces. Improved data visibility may also enable packers and downstream product experts to respond more quickly to quality issues.

Beyond compliance, traceability may increasingly support more direct engagement with consumers. Some products already carry QR codes linking to farmer stories and origin information. This could become more detailed, offering greater visibility into the journey of tea leaves and coffees beans from farm to cup.

If communicated effectively, this level of transparency may create additional value across the supply chain. Traceability could evolve from regulatory burden, into a framework for explaining the complexities of producing tea and coffee in a changing regulatory and environmental landscape. 

Paul Jefferies is senior responsible sourcing manager for tea, coffee and infusions at Finlay Beverages, a position he has held since June 2025. Previously he served as head of tea. Prior to joining Finlays in 2020, Jeffries was the tea buyer and blender at Typhoo Tea. Earlier in his career, Jeffries spent 12 years at Tata Global Beverages, where he held a number of positions.