African smallholder farmers, agro-dealers, and exporters are facing increasing pressure to comply with the European Union’s Deforestation Regulation (EUDR) as the deadline for implementation approaches. The EUDR introduces strict export rules for agricultural commodities, including cattle, cocoa, coffee, palm oil, and wood, to prevent deforestation. Companies must perform due diligence to trace products to their place of production and demonstrate that they are deforestation-free.
The EU has classified countries into low-risk, high-risk, and standard-risk categories. Only a few African countries, such as Rwanda, Kenya, and South Africa, are considered low-risk, while others, including Uganda, Tanzania, and Ethiopia, are classified as standard-risk. This means that companies sourcing from these countries will face full EUDR due diligence requirements.
The implementation of the EUDR is expected to start on December 30, 2025, for large and medium enterprises, and June 30, 2026, for micro and small enterprises. According to Vahini Naidu, Programme Coordinator of the Trade for Development Programme, these rules will determine whether African smallholder farmers will remain competitive over the next 12 to 24 months.
The compliance costs are expected to be unevenly distributed, with smallholder farmers facing a disproportionately large share of the costs. Studies estimate that up to 75% of annual income could go towards compliance alone. Additionally, awareness levels are low, with industry surveys showing that 85% of East African agribusinesses have no substantive knowledge of the EUDR.
The EU deforestation regulation introduces three tiers of compliance, including geolocation and satellite verification, due diligence, documentation, and audits, as well as digital traceability systems. The total annual compliance costs per smallholder range from €740 to nearly €2,000, while average smallholder incomes in the region range from €1,000 to €3,000 per year.
Many African countries have taken a state-led model to drive the process of compliance, with governments developing digital systems to track production and collect data on farm management practices. However, some experts have termed the EU rules as discriminatory, saying that the EU did not consult Africa in its process to introduce the new rules.
The European Parliament has voted in favor of delaying the implementation of the EUDR by one year, which would give companies an additional year to comply with the new rules. However, no final decision has been made on whether to extend the deadline. The significance of the EUDR lies in its potential impact on African smallholder farmers and the continent’s trade relationship with the EU. As the deadline approaches, it remains to be seen how African countries will adapt to the new rules and ensure that their farmers remain competitive in the global market.
