The EU deforestation laws are a step in the right direction to ensuring our planet is protected for future generations. The regulations prohibit the sale of commodities linked to deforestation, including cattle, wood, cocoa, soy, palm oil, rubber, and coffee.
The practical side of compliance with these new requirements is proving to be a burden on small and micro-farm producers due to infrastructure and economic constraints. In recognition of these challenges, enforcement of these new regulations has been deferred to June 2026 for small and micro enterprises and to December 2025 for large companies.
The economic impact of these regulations on coffee farmers around the world has not been quantified, however, Ethiopian farmers, are starting to see orders from the EU dry up. With some 5 million coffee farmers in Ethiopia reliant upon their coffee crop for survival, the financial impact is devastating. Many small landowners are finding it difficult to comply with the track and trace rules that require them to digitally map the plot of land where the coffee has come from. This task is not easy in a country where internet coverage is patchy. Vietnamese coffee growers are also citing tracking compliance as a major issue.
This new legislation has its advocates but also its critics. There is no denying that deforestation is occurring in the coffee industry, with approximately 130,000 hectares of forest lost annually for cultivation. Deforestation is the second largest contributor to carbon emissions after fossil fuels so measures need to be taken, and these laws are essential. With other countries potentially considering similar legislation, now is the time for governments and industry associations to collectively develop a plan that ensures compliance is achievable whilst not threatening the livelihoods of millions of farmers.