Laid Out: How The EUDR Could Impact The Coffee Industry – CoffeeTalk

Europe, the largest consumer of coffee globally, imports around 33% of the world’s coffee and is responsible for 25% of coffee consumption. However, coffee farming is a significant contributor to deforestation, which is the second-largest source of carbon emissions, with 90% of deforestation caused by agricultural expansion. Coffee farming is linked to about 6% of Europe-led deforestation across the coffee-producing world. The European Union (EU) created the European Union Deforestation Regulation (EUDR) in June 2023 to help end deforestation.

Starting Dec. 30, 2025, large companies will be required to specify the exact location of coffee bean production, while smaller companies will be subject to the same requirements starting in June next year. Other industries affected by this regulation include cocoa, soy, rubber, and wood, among others. The regulation has been delayed from its planned start date of Dec. 30, 2024, putting pressure on the supply chains of coffee and other agricultural industries. If a company cannot specify the exact production location, it will lose access to the European market.

Brazil, Vietnam, Colombia, Indonesia, and Ethiopia are among the world’s largest coffee-producing countries, with Brazil exporting over 60 million bags of coffee a year. Thousands of small farms contribute to each country’s coffee exports, with Vietnam having over 1.4 million small farms. For most of these countries, the coffee industry is a significant part of the economy.

Many small farmers are finding themselves under a lot of pressure with the enforcement of this regulation. A large majority of coffee production happens in developing countries, and many small-time farmers don’t have access to the geolocation technology required per the EUDR, which is putting a strain on the supply chain. The cost of complying with the EUDR could be significant for many small, family-run farms.

The European Commission announced on April 14 that it is taking steps to simplify the regulations’ guidelines while also aiming to reduce unnecessary costs for economic operators and authorities by about 30%. These revisions also include a decrease in due diligence statements, with the goal of guaranteeing easier and more efficient data entry.

A lack of information on specific implementation strategies and minimal decision-making power are huge concerns for these small farmers. The European Commission has allocated 86 million euros to aid partner countries in their compliance efforts. The true impact of this regulation will not be fully realized until December, and we can only hope that our favorite coffee beans will continue gracing our local cafes and supermarkets.

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