The EU goal of reducing global deforestation could have damaging consequences for Ethiopia’s coffee sector and wider economy, a think tank said. Some 15 million people in the country widely considered to be the birthplace of coffee are involved in the industry, which sends 30% of its output to the EU, according to London-based ODI Global.
The bloc’s new rules, due to come into force at the start of next year, will require exporters of certain commodities — including coffee and cocoa — to prove they are deforestation-free. The change is placing tough traceability and mapping burdens on producers. Coffee growing in Ethiopia is dominated by smallholders, whose beans are mixed together and sold on. Difficulties in tracing their origin could result in 60% of these growers being excluded from the European market, ODI Global estimated.
Ethiopia’s coffee authority is compiling data, but the process is not complete. In order to reverse historical deforestation, the country has also committed to planting 8 billion new trees this year, though the project has faced questions over verification and survival rates.