Ethiopian coffee and the EU Deforestation Regulation (EUDR): state of play, challenges and opportunities

The EU Deforestation Regulation (EUDR), in force since June 2023, prohibits placing coffee and other commodities on the EU market unless they are deforestation-free, legally produced, and supported by due diligence and traceability information. Its main obligations will apply from December 2026, with extended timelines for small operators. 

In Ethiopia, coffee is a critical export commodity that contributes significantly to foreign exchange earnings and supports the livelihoods of millions of farmers. The EU is Ethiopia’s most important coffee export market, accounting for more than 30% of coffee exports in 2022/2023.  While coffee is largely considered a forest-friendly commodity due to traditional cultivation practices, improving supply chain information and strengthening compliance systems will be essential to maintaining access to the EU market and supporting sustainable coffee production.