Coffee companies welcome EUDR delay – but ‘time alone is not enough’

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Pic: getty/thurtell (Getty Images)

Around 80% of the world’s coffee is produced by smallholder coffee farmers - so what do the EU’s deforestation regulations mean for the coffee industry?

The deadline for the EU’s deforestation regulation (EUDR) implementation has been delayed by a year, after a vote in European Parliament earlier this month.

The regulation obliges companies to ensure that coffee, cocoa, wood and other commodities don’t result from recent deforestation (meaning since December 2020). It was due to apply from December 30, 2024: but countries had voiced their concerns that it would be impossible to comply with the program within the timeline set.

After the European Commission proposed a one-year extension to implementation, that’s now been approved by the European Parliament. That means large scale operators and traders will have to respect the obligations stemming from this regulation as of 30 December 2025 (micro- and small enterprises will have until 30 June 2026).

While it welcomes the delay, International Coffee Partners says there’s more to be done. Financial support, capacity development and technical infrastructure remain ‘crucial prerequisites’ to a successful EUDR policy.

Relief for coffee smallholders

Around 80% of the world’s coffee is produced by smallholder coffee farmers – around 12.5 million worldwide. These farmers already face increasing climate risks, rising input prices and other economic shocks. The EUDR adds another major challenge.

Many smallholder farmers risk being excluded from the EU market: not because they grow their coffee on deforested land, but because they lack the necessary data and capacity to comply with the new administrative procedures.

International Coffee Partners (ICP) – comprising Delta Cafés of Portugal, Franck of Croatia, Joh. Johannson of Norway, Lavazza of Italy, Löfbergs of Sweden, Neumann Kaffee Gruppe of Germany, and Tchibo of Germany – welcomes the European Union’s decision to extend the phasing-in time for the EU Deforestation Regulation (EUDR) by 12 months.

That’s because it gives farmers and other stakeholders the time to adjust and meet the requirements.

But - stresses the organization - time alone is not enough.

“Financial support, capacity development, and technical infrastructure remain crucial prerequisites for a just and successful transition,” says the organization. “ICP is committed to working alongside the EU, global partners, and other stakeholders to co-create solutions that empower smallholder farmers and ensure they are not left behind.

“As ICP, we support the objectives of the EUDR as a step towards global forest protection, and we agree that it must be implemented as soon as possible. However, we appreciate that the EU acknowledged the concerns raised by global stakeholders, including smallholder coffee farmers, regarding the need for adequate transition time and resources. The timeline extension provides much-needed breathing space for smallholder farmers who face significant challenges in complying with the stringent geodata and traceability requirements set forth by the regulation.”

Looking forward over the next year, ICP says there’s an opportunity to work with the EU and global partners to provide farmers with the necessary support.

It wants to see collaboration on:

  • Financial Assistance: Secure joint funding to develop traceability systems, data management tools, and sustainable farming practices.
  • Capacity Development: Partner on training programs that help farmers understand and comply with EUDR requirements.
  • Technical Infrastructure: Co-invest in technology and infrastructure to improve the efficiency of geodata collection and management.

EUDR

The UN Food and Agriculture Organization (FAO) estimates that 420 million hectares of forest — an area larger than the EU — were lost to deforestation between 1990 and 2020. 

EU consumption represents around 10% of global deforestation.

The deforestation regulation, adopted by Parliament on 19 April 2023, aims to fight climate change and biodiversity loss by preventing the deforestation related to EU consumption of products from cattle, cocoa, coffee, palm-oil, soya, wood, rubber, charcoal and printed paper (soluble coffee, however, is exempt).

But environmental campaigners are disappointed by the delay.

ClientEarth lawyer Michael Rice said: “This outcome is an embarrassing confirmation of the EU’s collective failure to take the urgency of global deforestation seriously and to follow and enforce its own laws. The deforestation law has been years in the making and was adopted over 18 months ago after more than a year of negotiations – there was more than enough time to prepare for it.

“This is a collective act of self-sabotage and a terrible signal to the world – just as world’s leaders meet in Azerbaijan to build on climate commitments. We cannot hit pause on the climate crisis – the effects of which are already being severely felt in the EU through floods, forest fires and droughts. We cannot afford for EU consumption to continue fueling the destruction of the world’s forests for another day, let alone another year.

“The delay also run counter to the expectations of those companies that are ready to comply with the law and have already made significant investments to do so – many of whom spoke out in favor of the EUDR in the run-up to today’s vote. This delay could undermine business confidence in the EU’s ability to provide a stable regulatory environment that is so important for EU competitiveness.”

The file will now return to committee for further interinstitutional negotiations. For the EUDR changes to become law, the final text must be endorsed by both the EU Council and Parliament and published in the EU Official Journal.