Buon Ma Thuot, Vietnam. In the verdant fields outside Buon Ma Thuot city, Le Van Tam’s coffee plantation tells a story of adaptation. Tam, a small coffee farmer in Vietnam’s Central Highland region, has witnessed the shifting tides of global trade over decades. From chasing yields to now cultivating quality, his journey mirrors the evolution of an industry reshaped by changing demands and environmental imperatives.
“In the 1990s, it was all about quantity,” Tam reflects, as he surveys his sun-dappled forest-turned-coffee plantation. “But now, it’s about the value of the product.”
Tam’s transformation underscores a broader trend in the coffee world, one driven not just by market forces but by stringent European Union laws aimed at curbing deforestation. The European Deforestation Regulation (EUDR), set to take effect on December 30, 2024, is poised to reorder the dynamics of global coffee trade, with far-reaching implications for farmers, exporters, and consumers alike.
Under the EUDR, products like coffee will face a ban if companies fail to prove they aren’t linked to deforestation. The regulation casts a wide net, encompassing commodities such as cocoa, soy, and palm oil. For Vietnam, where coffee constitutes a significant portion of export income, the stakes are high.
“The EUDR marks an inevitable change,” asserts Le Minh Hoang, Vietnam’s agriculture minister, emphasizing the need for sustainable practices. With Europe accounting for 40% of Vietnam’s coffee exports, the country has swiftly moved to prepare its coffee-growing regions for compliance.
For farmers like Tam and his export partner, Le Dinh Tu of Aeroco Coffee, adaptation has been swift. Embracing sustainable methods, they’ve positioned themselves to meet the new requirements and reap the rewards of higher-quality produce.
“We must choose the highest quality,” Tu affirms, sipping a cup of their meticulously crafted coffee. “Otherwise, we will always be laborers.”
However, challenges loom large, particularly for smaller farmers and less-prepared suppliers. In Vietnam, efforts are underway to equip half a million smallholders with the necessary tools and certifications. Yet, ensuring compliance across the intricate coffee value chain remains a formidable task.
In Brazil, the world’s largest coffee producer, the transition may be smoother, given its established supply chain and extensive certification programs. But for countries like Peru and Ethiopia, where smallholder farming is prevalent and institutional challenges abound, the road ahead is fraught with uncertainty.
“In Peru and Ethiopia, gathering data from millions of small farmers presents a monumental challenge,” acknowledges Helen Bellfield of Global Canopy. “The impact on these communities could be significant.”
Indeed, as orders dwindle and doubts linger, the ripple effects of the EUDR are felt far beyond European shores. In Ethiopia, where coffee forms a substantial portion of export earnings, the urgency to comply is matched only by the daunting task of implementation.
“These regulations will reshape the industry,” reflects Gizat Worku of the Ethiopian Coffee Exporters Association. “The challenge now is ensuring no one is left behind.”
As the countdown to December 30 continues, the global coffee community braces for a new era, one defined by sustainability, accountability, and the enduring quest for the perfect cup. In this brewing revolution, winners and losers will emerge, their fate intertwined with the changing currents of trade and regulation.
Paraluman P. Funtanilla
Paraluman P. Funtanilla is Tutubi News Magazine's Marketing Specialist and is a Contributing Editor. She finished her degree in Communication Arts in De La Salle Lipa. She has worked as a Digital Marketer for start-up businesses and small business spaces for the past two years. She has earned certificates from Coursera on Brand Management: Aligning Business Brand and Behavior and Viral Marketing and How to Craft Contagious Content. She also worked with Asia Express Romania TV Show.
