The impending EU Deforestation Regulation (deforestation-law-engaging-producers/” title=”The EU's New Deforestation Law Needs to Engage Producers | TNC”>EUDR) is causing a stir in commodity-producing nations, notably in Africa. This legislation, initially scheduled to take affect sooner but now delayed by a year, mandates that products sold in European markets, including coffee, must be free from deforestation after 2020.Companies must demonstrate compliance by meeting local regulations and ensuring the traceability of their products back to the farm.
The fear is that international companies, wary of the risk, will favor purchasing from countries best prepared to meet the EUDR’s stringent requirements, possibly leaving African producers out in the cold. this concern is already materializing, with at least one major Ethiopian coffee buyer, Dallmayr, announcing plans to discontinue its long-standing commitment to Ethiopian beans.
Ensuring deforestation-free coffee production in Africa, a continent dominated by smallholder farmers, presents a formidable challenge. Informal and often porous supply chains make traceability tough, and it’s unclear how many farmers are even aware of or adhere to local regulations. However, access to the European market is crucial, with a notable portion of the population in some producing countries relying on coffee for their livelihood.
While the pressure to comply with the EUDR is significant and the risk of losing export income is real, experts advise against rushing to a solution. instead, they advocate for a more strategic approach that leverages EUDR preparedness as a catalyst for broader, long-term transformation within the agricultural sector.
A Long-Term Vision
Table of Contents
- 1. A Long-Term Vision
- 2. Preparing Coffee Sectors in Ethiopia and Rwanda for a Sustainable Future
- 3. A Two-Pronged Approach: Technical Expertise and Collective Action
- 4. Ethiopia: Securing a Vital Export
- 5. Rwanda: Transforming for the Future
- 6. Navigating the Complex Landscape of EU Due Diligence
- 7. A Long-Standing Partnership for Positive Change
“If all this effort is going into ensuring EU DR compliance, how can we make sure that the African coffee sector gets the maximum long-term benefit from this work?” asks Andrew Bovarnick, UNDP’s Global Head of Food and Agricultural Commodity Systems.
The EUDR, while primarily focused on deforestation, presents an chance to address deeply rooted issues within the coffee sector. By embracing a systemic approach, African nations can use the compliance process as a springboard for modernization, sustainability, and improved farmer livelihoods.
Preparing Coffee Sectors in Ethiopia and Rwanda for a Sustainable Future
As the EU’s deadline for implementing new due diligence regulations (EUDR) draws near, African coffee-producing nations face significant challenges. UNDP is stepping in to support governments and stakeholders in Ethiopia and Rwanda,helping them not onyl achieve EUDR compliance but also address long-term strategic issues within their coffee sectors.
A Two-Pronged Approach: Technical Expertise and Collective Action
UNDP’s strategy combines focused technical assistance, such as establishing farmer support systems and traceability mechanisms, with a broader effort to unify stakeholders around a shared vision for the future of coffee.
“UNDP’s long experience in setting up multistakeholder National Commodity Platforms (NCPs) will be extremely valuable for the collective action required to achieve EUDR as they will help make such complex processes efficient and start fast, building on all the lessons learned from over a decade of designing, initiating and supporting such platforms.”
Leif Pedersen, UNDP Senior Commodities Adviser.Ethiopia: Securing a Vital Export
in Ethiopia, coffee accounts for roughly one-third of the country’s exports, serving as its primary source of foreign exchange. The EU is the leading market, receiving approximately 30% of Ethiopia’s coffee exports. UNDP is working to facilitate multistakeholder dialogues in ethiopia, aiming to achieve EUDR compliance while simultaneously improving the overall health of the coffee sector.
Rwanda: Transforming for the Future
In Rwanda, the Fit for fair initiative, funded by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), sees UNDP collaborating with the Rwanda National Agriculture and Export Development Board (NAEB). The program focuses on supporting Rwandan coffee farmers and transforming the Rwandan coffee industry to meet future challenges. By establishing a multistakeholder working group,Fit for Fair aims to ensure continued access to key markets,moving the sector beyond mere compliance towards strategic transformation.
The United Nations Development Programme (UNDP) is extending its expertise to help Ethiopia and Rwanda align their agricultural sectors with new european Union regulations on due diligence.
these new regulations,encompassing the EUDR,the Corporate Sustainability Due Diligence Directive (CSDD),and the German Supply Chain Due Diligence Act,present significant challenges for countries looking to ensure their supply chains are ethical and sustainable.
Recognising the complexities involved, Ethiopia and Rwanda have turned to UNDP for support. UNDP has a proven track record in driving sustainable transformation in commodity sectors,combining technical knowledge with effective multi-stakeholder collaboration.
A Long-Standing Partnership for Positive Change
Through a long-standing partnership with the Swiss state Secretariat of Economic Affairs (SECO), UNDP has developed robust methodologies and tools for engaging stakeholders in long-term change processes. This expertise will be crucial in helping Ethiopia and Rwanda address the multifaceted challenges posed by the new EU regulations.
“The governments of Ethiopia and Rwanda know that national solutions to EUDR challenges are complex, country-specific, require collaboration across ministries and stakeholders, and may take years to implement.” said Bovarnick. “They recognize UNDP’s track record in structural and sectoral transformation, alongside political, technical, technological, and financial solutions.We look forward to fruitful collaboration amongst all stakeholders”.
## Archyde Interview: Navigating the EU’s Deforestation Regulations: A Lifeline or a Threat to African Coffee?
**Introduction:**
The EU’s new Deforestation Regulation (EUDR) is shaking up global commodity markets, raising concerns for African producers, especially in the coffee sector.
Joining us today is **[Guest Name]**, [Guest Title and Affiliation], to shed light on the challenges and opportunities presented by the EUDR.
**Interviewer:**
Welcome to Archyde, [Guest Name]. The EUDR requires companies to ensure their products, including coffee, are deforestation-free.How is this impacting coffee-producing nations like ethiopia and Rwanda?
**Guest:**
Thank you for having me. The EUDR is a game-changer for coffee producers. While its aim to combat deforestation is commendable, the immediate worry is that African countries might struggle to comply wiht the traceability and due diligence requirements. This could lead to European buyers shifting their sourcing to countries perceived as lower risk, potentially hurting African producers who depend heavily on the EU market.
**interviewer:**
You mentioned the risk of producers being left behind. Can you elaborate on the specific challenges African farmers face in meeting these new regulations?
**Guest:**
Several factors contribute to the complexity. Many African coffee farms are small-scale and operate in less formal settings. Tracing coffee beans back to their origin through often informal supply chains poses a significant challenge. Furthermore, many farmers may not even be aware of the EUDR or have the resources to adopt the necessary sustainable farming practices.
**Interviewer:**
So, while the intention behind the EUDR is positive, its implementation could inadvertently harm those it aims to protect. what solutions are being explored to address these challenges?
**Guest:**
It’s crucial to view the EUDR not as an immediate threat but as an opportunity for long-term transformation.Organizations like the UNDP are actively working with governments and stakeholders to develop systems that ensure traceability and promote sustainable farming practices. This involves establishing farmer support systems, training programs, and potentially leveraging technology for improved traceability.
**Interviewer:**
what role do governments and international organizations play in supporting these efforts?
**Guest:**
Governments need to prioritize clear policies and regulations that facilitate EUDR compliance while empowering farmers. International organizations can provide technical expertise, financial assistance, and facilitate knowledge sharing. It’s a collective effort requiring collaboration between stakeholders at all levels.
**Interviewer:**
Looking forward, how do you see the EUDR shaping the future of the African coffee industry in the long run?
**Guest:**
The EUDR has the potential to be a catalyst for positive change. By addressing deforestation concerns and promoting sustainable practices, it can contribute to a more resilient and equitable coffee sector.This will benefit farmers, consumers, and the environment in the long run. Though, success depends on a collaborative and proactive approach that prioritizes the needs and well-being of African producers.
**Interviewer:**
Thank you for your insightful perspective on this crucial issue, [Guest Name].
**[Guest Name]:**
Thank you for having me.
