Few agricultural products are as globally loved as coffee – and few are as closely tied to tropical ecosystems. Coffee cultivation takes place primarily in regions rich in biodiversity, such as the Amazon Basin, Central Africa, and Southeast Asia. Yet the expansion of coffee plantations is one of the key drivers of deforestation in these areas. As forests are cleared to make way for monocultures, fragile habitats are destroyed, climate systems are disrupted, and local communities are put at risk. The European Union is now taking a stand against these developments with the EU Deforestation Regulation (EUDR), a policy aimed at ensuring that products entering the European market are not linked to deforestation. For the coffee industry, this regulation marks a turning point.

Why Coffee Is in the EUDR Spotlight

Coffee is not just another commodity – it represents both a global passion and a serious environmental concern. Between 1990 and 2020, the world lost over 420 million hectares of forest, an area larger than the European Union. In several producing countries, such as Brazil, Colombia, and Vietnam, forest land has been sacrificed to satisfy global coffee demand. The EUDR sets out to reverse this trend by introducing strict traceability and risk assessment obligations. Under the regulation, companies must prove that the coffee they place on the EU market is deforestation-free and legally harvested. This requires a detailed understanding of the product’s origin, the conditions under which it was produced, and whether any part of the supply chain contributes to illegal practices or environmental harm.

Compliance in Practice: What Coffee Companies Need to Do

The EUDR outlines a three-step due diligence process that must be followed by EU operators and large traders:

1. Trace your beans
   Companies must collect detailed product data, including type, origin, quantity, and CN code, as well as geolocation data (coordinates or polygons) for each plot of land. Legal documentation proving compliance with environmental, labor, and land use laws must also be provided.
2. Assess the risk
   Using satellite images, deforestation maps, and third-party reports, companies must evaluate whether any part of the supply chain poses a risk of deforestation or illegality. This includes analyzing supplier behavior and local enforcement practices.
3. Mitigate the risk
   If the risk is higher than negligible, companies must act. Options include supplier engagement and training, third-party audits, or switching to verified sources. All actions must be documented to demonstrate compliance.

Challenges Unique to Coffee Supply Chains

The path to compliance is particularly demanding for the coffee sector. Smallholder farmers – who produce the majority of the world’s coffee – often lack the tools, technology, and capacity to provide detailed geolocation data or legal paperwork. On top of that, coffee beans are frequently blended during processing, making batch-level traceability a major challenge.

Add to that:

• A lack of digital infrastructure in many producing regions
• Limited access to affordable certification or audit services
• High upfront costs for compliance without guaranteed market benefits

Without targeted support and collaboration, the risk is that small producers may be excluded from EU markets entirely.

From Obligation to Opportunity

Despite these challenges, the EUDR presents a chance for the industry to evolve. Companies that proactively embrace compliance can build stronger supply chains, unlock access to sustainability-conscious markets, and strengthen their brand reputation. Consumers are increasingly willing to pay more for ethically sourced products – and coffee is no exception.

For smallholders, access to EU markets through verified supply chains can drive long-term benefits: better prices, more stable buyer relationships, and greater resilience in the face of climate and economic shocks.

Why Technology Is Non-Negotiable

Manual compliance is not scalable. The level of detail and documentation required by the EUDR demands digital support – from satellite tracking and automated reporting to real-time supplier collaboration. Technology makes it possible to manage the complexity without slowing down business operations.

Key advantages of digital solutions include:

• Traceability from farm to port using geospatial tools and GPS mapping
• Automated risk analysis and documentation, reducing administrative overhead
• Real-time collaboration across global supply chains

osapiens: Supporting the Coffee Sector with Scalable Technology

The osapiens HUB for EUDR is designed specifically to address the challenges of deforestation compliance in complex supply chains like coffee. It enables businesses to integrate real-time data, conduct automated risk assessments, and manage documentation efficiently – all in one scalable platform. From collecting geolocation data to flagging high-risk suppliers and generating due diligence reports, osapiens helps turn a legal obligation into a manageable, strategic advantage. With transparency and efficiency at the core of our solution, companies can ensure that their coffee is not only EUDR-compliant but also aligned with their sustainability and business goals.

The Future of Coffee Is Transparent

The EUDR marks more than a regulatory shift – it signals a broader transformation of the coffee industry. It challenges businesses to rethink how they source, trace, and certify their products, but it also empowers them to take real action for the planet. With the right technology and partnerships, EUDR compliance can be more than a box to check. It can be the beginning of a more sustainable, inclusive, and resilient coffee supply chain – one that benefits producers, companies, consumers, and the forests we all depend on.