"EU Deforestation Law Threatens African Coffee Industry's Future"
Importers of coffee to the European Union are reducing purchases from small farmers in Africa and other regions in preparation for a new EU law that will ban the sale of goods linked to deforestation. The EU Deforestation Regulation (EUDR), set to take effect in late 2024, requires importers to prove that their commodities did not originate from deforested land or face fines. The cost and complexity of complying with the law have already led to a decrease in coffee orders from Ethiopia, impacting the livelihoods of millions of farming families. Companies are adopting sourcing strategies that may increase poverty among small-scale farmers and raise prices for EU consumers, while undermining the EUDR's impact on forest conservation. The law's requirement for digital mapping of supply chains and the reliance on data from multiple local middlemen pose additional challenges. Some major companies plan to redirect raw materials they cannot trace reliably to non-EU markets, reducing the EUDR's impact on forest conservation. Compliance costs are expected to raise food prices in the EU, while major cocoa-producing countries face difficulties in tracing their supply chains.