Small coffee farmers in Africa prepare for impact of new EU law against deforestation The European Union’s latest law on anti-deforestation, designed to safeguard diminishing forests by prohibiting goods sourced from deforested regions, is closely monitored in certain parts of Africa.
Local traders argue that the new regulations may discourage European companies from buying their coffee. Some industry insiders warn that the stringent requirements for companies to prove that their coffee is not linked to deforestation could significantly alter the global coffee supply chain.
The implementation of the law, set to take effect in late 2024, is already causing unintended consequences that might reshape global markets for commodities. Experts caution that the EU Deforestation Regulation (EUDR) could disproportionately impact small-scale coffee farmers in Africa, leading to winners and losers in the industry. Reports suggest that orders for Ethiopian coffee have declined, partly due to the country’s slow response to the new EU regulations.
Despite Ethiopia’s efforts to address the issue with a national plan in February 2024, challenges remain in collecting necessary data from millions of small farmers and sharing it with buyers. Gizat Worku, head of the Ethiopian Coffee Exporters Association, acknowledges the resource-intensive nature of complying with the EUDR, which has raised doubts about the country’s ability to meet the requirements.
With approximately 25 million smallholder farmers producing 80% of the world’s coffee, many of whom lack reliable internet access in remote areas, the enforcement of the new EU law is expected to pose significant challenges.
