October 4, 2024

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ethiopian coffee exports on decline after new EU law

New EU Law Threatens Ethiopian Coffee Industry

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The new EU law threatened the Ethiopian Coffee industry as many coffee exporters struggle to ship their products to Europe. A new European Union law prohibits the sale of certain products, including coffee, unless they prove they are free from deforestation and degradation.

The manager of Arfasa General Trading Export Company reported that sales to Europe have stopped since the EU enacted this law. Ethiopian coffee buyers hesitate to sign contracts because they fear delays as the European New Year approaches.

The general manager of the Coffee Exporters’ Association explained that the EU law requires all coffee imported into Europe from January onward to be certified as deforestation-free. Satellite images show only two hectares of Ethiopian coffee land affected by deforestation.

Despite this minimal impact, Ethiopian coffee industry struggle to obtain the necessary certifications for their coffee exporters. Without verification, they risk non-compliance with EU regulations. This situation may force many exporters to leave the market.

Exporters often collect coffee from about 30 farmers. They need detailed records of each farmer’s name and location. This requirement creates significant logistical challenges for those exporting coffee to Europe.

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