The EU introduced the EU Deforestation Regulation (EUDR), set to be enforced by late 2024, causing worry in the coffee industry. Buyers for the EU are altering orders away from small farmers in places like Ethiopia due to the law banning goods linked to deforestation, a major factor in climate change. This shift might harm small farmers and raise coffee prices for EU consumers, potentially falling short of effectively protecting forests.

Companies like Dallmayr, a German coffee roaster, fear sourcing large amounts of coffee from Ethiopia due to the new law. This law demands importers prove products like coffee, cocoa, and soy are not from deforested areas. Tracing these origins is tough, especially where internet access is poor and land ownership is complex. While the EU wants to assist producing countries and small farmers, there are doubts about its practicality. Major producers like Ivory Coast and Ghana might struggle due to the law’s impact on protected forests. This might redirect goods elsewhere, alter supply chains, potentially reduce the law’s forest conservation goals, and cause higher EU food prices. Overall, the EUDR’s effects are complex, influencing economics, the environment, and society, posing challenges for small farmers and importers while aiming to combat deforestation tied to global trade.