While the EU Regulations aim to promote environmental sustainability, they pose significant challenges for smallholder farmers, including increased compliance costs, risk of reduced market access, and insufficient support systems. The regulations require coffee to be grown on land free from deforestation.
Smallholders already face stagnating or declining yields because of limited access to essential inputs such as fertilizers and credit. The additional costs of implementing traceability and sustainability standards could further hinder their ability to invest in productivity-enhancing practices.
According to the Policy brief, there is need to mitigate these challenges through partnerships with private sectors to provide training, improve productivity, and establish effective traceability systems, highlighting the need for collaborative efforts to address these challenges.
For more insights about the brief, please visit the link below: