Ethiopia’s coffee future vis-à-vis EU deforestation law

The European Union (EU), which imports 30% of Ethiopia’s coffee, has postponed the implementation of its deforestation regulation by 12 months after extensive negotiations with the Ethiopian government. Despite Ethiopia’s sustainable coffee production practices, the Ministry of Agriculture emphasized the need to protect the country’s reputation in the EU market.

Coffee plays a critical role in Ethiopia’s economy, serving as a primary source of foreign exchange. However, production challenges and regulatory hurdles prompted Ethiopia to seek more time to comply with the EU’s new deforestation rules.

During a recent workshop on environmental issues in coffee farming, the Ethiopian Coffee and Tea Authority (ECTA) Director General Adugna Debela (PhD) stressed the importance of addressing environmental concerns to benefit farmers, exporters, and stakeholders. He reaffirmed the government’s commitment to increasing coffee production while aligning with international standards, including the deforestation regulation.

Efforts to improve coffee farming are reversing a five-year trend in which farmers abandoned coffee for maize due to low prices. Recent studies presented  the workshop emphasized the need for additional support for smallholder farmers and greater international cooperation, especially with the EU.

Agriculture Minister Girma Amentie (PhD) highlighted Ethiopia’s alignment with the EU’s environmental goals, noting that the nation’s forest cover has increased from 17.2% to 23.6% under the Green Legacy Initiative. This initiative reflects Ethiopia’s commitment to sustainable agriculture and climate action.

To ensure compliance with the EU regulation, ECTA and the German International Development Cooperation (GIZ) introduced a national geospatial database system to track the origins of coffee and verify deforestation-free production. A recent EU delegation visit confirmed that Ethiopia’s coffee farming practices do not contribute to deforestation, as coffee plants coexist with forest ecosystems.

The EU’s postponement of the regulation until December 30, 2024, provides operators, traders, and Third World countries, including Ethiopia, time to prepare for the new requirements. While the law technically took effect on June 29, 2023, enforcement has been delayed pending approval from the European Parliament.

Ethiopia’s coffee exports have achieved significant success recently, generating 521.98 million USD from 115,851.77 tons of coffee, tea, and spices in the first quarter of the 2024/25 fiscal year. This performance exceeded the original target of 427.10 million USD from 83,294.25 tons, marking a 46% increase in revenue and a 69% growth in export volume.

With the extra time granted by the EU, Ethiopia is poised to strengthen its coffee sector, meet international standards, and build on its recent export achievements.

The EU deforestation law, aimed at combating global deforestation and promoting sustainable trade, requires that products imported into the European Union, including coffee, be free from any connection to deforestation.

BY YESUF ENDRIS

THE ETHIOPIAN HERALD SATURDAY 19 OCTOBER 2024

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