Combining EUDR Compliance and Sector Transformation in African Coffee

Despite the one-year implementation delay announced by European Commission President Ursula Von der Leyen, the expectation of the planned EU Deforestation Regulation has put commodity producing countries under pressure, with many working hard to find ways to comply. In Africa, thanks to its systemic approach to change, UNDP is encouraging governments to combine immediate EUDR compliance with long-term transformation of their agricultural sector.

The new regulation requires companies that sell a range of products - including coffee - on European markets to show that these products have not been grown on land deforested after 2020, that they are produced in accordance with local regulations, and they must be traceable back to the farm. The fear is that risk-averse international companies will seek to concentrate purchases in production countries best organized to meet the regulation, leaving more vulnerable African producing countries out in the cold. At least one significant buyer of Ethiopian coffee, Dallmayr, has announced plans to abandon its longstanding commitment to Ethiopian coffee.

Proving that coffee has been produced without deforestation in a continent of smallholder farmers is a challenge. Informal, porous supply chains make traceability difficult, and it is unclear how many farmers know of or stick to local regulations. But maintaining access to the European market is vital - in some producing countries a quarter of the population depend on coffee for their livelihood.

Given the oncoming regulation and the risk of losing significant export income, rushing to a solution would be understandable. However, exporting countries should consider how solutions can contribute to a more long-term transformation of their commodity sectors that will bring prosperity to future generations of farmers. EUDR preparedness can jump-start some of the necessary change processes: