Ethiopian Coffee Exporters Face EU Deforestation Regulation Compliance Challenge
Ethiopian coffee exporters face a significant challenge in complying with the European Union Deforestation Regulation (EUDR) to access the EU market. The regulation, effective from January 1, 2021, requires precise geolocation data of coffee cultivation plots and proof of legality in the country of origin.
The EUDR's implementation coincides with Ethiopia's fragmented supply chain, presenting unique challenges but also opportunities for digital-first compliance strategies. Key to maintaining compliance and audit readiness are digital tools and supplier engagement.
Compliance involves ensuring deforestation-free sourcing, precise geolocation data for coffee plots, and verifying legal production. Exporters must meet five core requirements: farm-level geolocation, deforestation verification, legal land use proof, due diligence statement submission via EU TRACES, and recordkeeping for five years or more. Companies like Sygic, Gurtam, Digital Matter, and GPS-Trace offer EU-compatible geolocation software to assist in compliance efforts. Failure to provide the required data, particularly farm-level geolocation in formats like GeoJSON, may result in shipments being blocked at EU borders.
Ethiopian coffee exporters must prioritize compliance with the EUDR to maintain access to the EU market. By adopting digital tools and engaging with suppliers, they can ensure deforestation-free sourcing, precise geolocation data, and legal production verification, ultimately protecting their business from potential disruptions at EU borders.