Ethiopia's coffee industry, a cornerstone of its economy and part of its cultural identity, is facing a significant challenge due to new European Union legislation aimed at combating deforestation. The EU Regulation on Deforestation-free Products (EUDR), set to take effect in 2025, requires proof that imported agricultural products, including coffee, are not linked to deforestation. Ethiopian coffee producers, predominantly smallholders who rely on coffee for their livelihood, argue that the legislation unfairly impacts them due to their limited capacity to gather the necessary compliance data. With European buyers already hesitant to purchase Ethiopian coffee, the industry fears a major economic blow unless a viable solution is found to meet the EUDR's demands while maintaining the traditional and eco-friendly coffee farming practices inherent to Ethiopia.
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