How Europe’s New Deforestation Rules Impact Small Coffee Farmers

In the rolling hills of Central America, where coffee is not just a crop but a way of life, small coffee farmers face a new and unfamiliar challenge. With the European Union’s Deforestation Regulation (EUDR) approaching, smallholders who have traditionally focused on cultivating quality beans now find themselves navigating complex environmental compliance measures. The regulation, set to take effect by December 2025, aims to curb deforestation globally by requiring importers of coffee, among other commodities, to ensure that their products are not linked to deforested land.

For many, the regulation’s intent aligns with their values of sustainability and land stewardship. However, for small farmers who lack resources, EUDR compliance could feel more like an insurmountable burden than a beneficial change. “We’ve always taken pride in taking care of our land,” says Javier Santos, a fourth-generation coffee farmer in Costa Rica. “But we don’t have the technology or the funds to prove that every bean comes from non-deforested areas.”

Traceability: The Core Challenge

At the heart of EUDR compliance is traceability, which requires geolocation data and verifiable proof that coffee isn’t grown on land deforested after December 31, 2020. This stipulation might be straightforward for large-scale producers with dedicated logistics teams and sophisticated tracking systems. However, for smallholders, often working in remote areas with limited internet access, meeting these requirements can be daunting.

“For many small farmers, just keeping track of their yields and expenses is challenging enough,” explains Maria Ortiz, a representative for an agricultural cooperative in Honduras. “Now, they’re being asked to provide geolocation data and detailed documentation. It’s a whole new world for them, and the learning curve is steep.”

Ortiz’s cooperative, which represents over 1,000 smallholders, has begun workshops to introduce farmers to traceability concepts and tools. Still, she admits that most smallholders feel overwhelmed. “They fear they’ll lose access to European markets if they can’t meet the requirements, but they also don’t have the funds to invest in the necessary technology.”

Financial Pressures and Access to Markets

Many small farmers worry that EUDR will add to their costs, forcing them to choose between compliance and profitability. In countries like Colombia, where smallholder coffee farmers earn only a few dollars a day, the potential costs of compliance may be untenable. Purchasing GPS devices, maintaining detailed logs, and hiring specialists to navigate paperwork are expenses that can quickly add up.

“The margins in coffee farming are already thin,” says Eduardo González, an agricultural economist who has studied the impact of trade regulations on coffee markets. “Small farmers are being asked to make investments that, for some, are more than they make in a season. For those who can’t afford it, there’s a real risk of losing the EU market altogether.”

González also highlights that smallholders often rely on traditional farming methods, making it difficult to document precise geolocation without outside help. “They’re not logging their land with high-tech systems. For many, their plot boundaries are family knowledge passed down for generations.”

Cooperatives as a Lifeline

For smallholders facing compliance challenges, cooperatives are emerging as a crucial support system. In Nicaragua, for instance, the CONACAFE cooperative has started a pilot program to provide farmers with affordable GPS devices and training sessions on traceability and documentation.

“We realized that without cooperative support, most of our members wouldn’t be able to comply with the EUDR,” explains Alejandro Rivera, CONACAFE’s director. “By pooling resources and providing education, we’re trying to bridge the gap between smallholders and these new regulations.”

However, even with cooperative support, the road is not easy. The additional burden of EUDR compliance has led to frustration among farmers, some of whom question whether the regulation takes their realities into account. “The EU says it wants to prevent deforestation, but we’re the ones who preserve the land,” says Santos. “If we can’t export our coffee, who benefits from that?”

A Mixed Response from Industry Experts

The EUDR’s impact on small farmers has sparked a debate among experts in the coffee industry. While some argue that the regulation is a necessary step to address environmental degradation, others believe it could have unintended consequences for those least responsible for deforestation.

“It’s a well-intentioned law, but it risks punishing the wrong people,” says Dr. Sofia Hernandez, an environmental policy expert who has worked with coffee producers in Latin America. “Small farmers who’ve cultivated coffee for generations, often using sustainable practices, may find themselves unable to comply due to a lack of resources and infrastructure. They could be driven out of the market while larger players benefit.”

Hernandez suggests that the EU should consider financial aid or technical support programs for smallholders. “Without assistance, there’s a risk of consolidation in the industry,” she explains. “The big plantations and multinationals with the capital to comply will thrive, while smallholders, who often farm more sustainably, could be left behind.”

Hope for Adaptation and Growth

Despite the challenges, some in the industry see potential for growth and adaptation. They believe that with the right support, smallholders can turn EUDR compliance into an advantage, leveraging their sustainable practices to attract conscious consumers in Europe and beyond.

“Consumers are increasingly valuing transparency and environmental stewardship,” says Paul Kramer, a sustainability consultant for coffee brands. “If cooperatives can help smallholders achieve traceability, it could open up new market opportunities, not just in Europe but globally. This could be an opportunity to tell their story and showcase the sustainable practices that have been part of their heritage for generations.”

Looking Forward

As the December 2025 deadline approaches, small coffee farmers in Latin America, Africa, and Asia are bracing for change. While EUDR presents significant hurdles, it also underscores the importance of supporting smallholders in navigating the modern demands of global trade. For many farmers, compliance will require substantial shifts in their operations and support from cooperatives, governments, and international stakeholders.

Ortiz from Honduras voices a sentiment shared by many. “We’re ready to do our part to protect our forests and our land,” she says. “But we need the world to recognize that it’s not easy for small farmers. With a bit of support, we can meet these standards without losing what makes our farms special.”

The EUDR has brought the coffee industry to a crossroads. Its impact on small farmers will depend on whether stakeholders prioritize inclusive support, ensuring that those who cultivate coffee with care and respect for the land can continue to thrive in a globalized world.