With the European Union Deforestation Regulation (EUDR) set to take effect for large operators on December 30, 2026, a new report indicates that many smallholder producers are not prepared to meet its requirements. The study, published by the International Institute for Sustainable Development (IISD), found that while awareness of the regulation is high, significant gaps remain in resources, technical capacity, and land documentation for farmers to achieve compliance.
The research, which surveyed 333 farmers and producer groups across 16 countries, highlights a critical risk of “market leakage.” According to the report, 79% of coffee respondents believe that strict compliance demands could force producers to sell their crops into less-regulated, non-EU markets. This shift could undermine the EUDR's primary goal of curbing global deforestation by simply redirecting non-compliant products to markets with weaker environmental standards.
The report also identifies a growing divide between independent farmers and those connected to cooperatives or certification programs, with the latter having better access to training and institutional support. To prevent the exclusion of smallholders from the EU market, the authors call for a shared-responsibility approach. Farmers surveyed identified government policies (84%), financial assistance (78%), and capacity-building training (74%) as essential forms of support needed to navigate the new regulatory landscape.