What Lies Ahead For Smallholder Coffee Farmers Ahead Of The EUDR Amendments? – CoffeeTalk

The European Union’s Deforestation Regulation (EUDR), introduced in 2023, has been the subject of significant debate among industries and governments. After prolonged negotiations, enforcement has been postponed by one year, now scheduled to begin on December 30, 2026, for large operators and traders, and on June 30, 2027, for small and micro traders. A vital consideration for the regulation’s success is providing smallholder farmers—who contribute to approximately 80% of global coffee production—with accessible compliance pathways, tools, data, and adequate support for traceability and due diligence.

The EU highlighted difficulties with its information system that underpins due diligence reporting and compliance validation. These traceability requirements have widened the gap between those with the resources to comply and those without, given that traceability often relies on cooperatives, exporters, and intermediaries instead of the farmers themselves. Recent regulatory adjustments aim to simplify compliance processes and reduce administrative burdens while maintaining the regulation’s ambitious goals.

Despite the EUDR’s revisions, the fundamental issues remain unaddressed. Many smallholder farmers, particularly in developing nations such as Ethiopia and Indonesia, lack the necessary infrastructure and technical assistance for compliance. The regulatory changes feel inadequate, likened to applying a “band-aid” over deeper systemic problems rather than ensuring effective measures for compliance.

Moreover, the challenge lies in ensuring that the proposed simplifications do not dilute the regulation’s impact. Similar issues have arisen in other EU sustainability initiatives, such as the Corporate Sustainability Due Diligence Directive (CSDDD), where a balance must be struck between competitiveness, legal clarity, and feasibility.

For companies seeking compliance, the evolving nature of the regulation can lead to uncertainty about standards and enforcement timelines, potentially hindering investment in traceability and supplier enablement. In the context of coffee, the shared infrastructure is crucial, underscoring the necessity of clear and consistent guidelines to foster collaboration among cooperatives and intermediaries to assist smallholder adoption without compromising the regulation’s core objectives.

Lastly, the EU faces the critical task of ensuring that while compliance processes are simplified, they simultaneously reinforce the regulation’s environmental goals and contribute to tangible outcomes. Successful implementation of the EUDR will depend on the maturation of supporting infrastructure, clear guidelines, and effective accountability mechanisms that align with the regulation’s ambitious aims.

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