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EU Deforestation Regulation Threatens to Grind Uganda’s Coffee Exports

For farmers across Uganda, the European Union’s Deforestation Regulation (EUDR) is not just a new policy to watch out for, but a potential game changer that could drastically affect their livelihoods. Set to take effect at the end of 2024, the regulations require anyone exporting products to the EU to prove their goods have no links to deforestation—the clearing of forests for human use. While this sounds like a win for the environment, it raises serious concerns for Ugandan farmers: what does this mean for us? Are we ready? And perhaps most importantly, is Uganda prepared to meet these new standards?

Uganda is no stranger to farming, agriculture is a way of life here, the backbone of our economy. With 70% of the population engaged in agriculture and coffee alone accounting for over 20% of Uganda’s export revenue, the country fills the cups of many European coffee drinkers. If you are a small-scale farmer in Uganda, chances are Europe is a major buyer of your goods. That’s why the EUDR, while a noble effort to protect the world’s forests has become a hot topic among farmers and traders alike.

The regulation covers products like palm oil, soy, cattle, coffee and cocoa, among others. This implies that to export these goods to the EU, Ugandan farmers and exporters will need to prove their products aren’t tied to land cleared after December 31, 2020. Sounds simple, right? But for the average Ugandan farmer, it’s far from straightforward.

The challenge lies in the fact that many farmers in Uganda simply aren’t prepared for this regulation. Small-scale farmers often lack access to advanced tracking tools or proper information about these requirements. A farmer in a rural area, planting coffee the way their parents did, might not have the capacity—or even understand the need—to trace their produce back to the specific piece of land it was grown on. Moreover, the technology or systems required for such traceability are not readily available to the average farmer.

This lack of preparedness stems partly from a shortage of communication. Farmers in Uganda haven’t received clear guidelines on how to meet these new standards. For many, the EUDR feels like a distant law from Europe that doesn’t align with their reality—a major issue given the EU’s significance to Uganda’s agricultural export market.

Ugandan smallholder farmers, many of whom rely on middlemen to sell their crops, might find themselves shut out of the European market altogether if they can’t prove their produce isn’t linked to deforestation. The challenge is compounded when you consider that most of these farmers don’t own sophisticated tracking systems or supply chain management tools to keep up with the EUDR’s due diligence requirements.

For these farmers, even understanding what ‘deforestation-free’ means can be confusing. Imagine trying to determine whether the land you cleared years ago for farming is classified as deforested under EU regulations.

Moreover, the regulation requires proof of no deforestation risk, not just a promise and by ‘proof,’ this means extensive traceability and due diligence in the supply chain. For instance, farmers or exporters must demonstrate that their land hasn’t been cleared for farming after December 31, 2020. This may involve providing data such as GPS coordinates, satellite imagery, or certification from environmental organizations to ensure their goods comply with the regulation.

In essence, the regulation is stringent to ensure that environmental commitments are backed by concrete action and traceable data, rather than mere verbal assurances.  If exporters fail to meet these standards, their goods could be prohibited from entering the EU market.

So, what is Uganda doing to prepare? While the country has made strides toward promoting sustainable land use, including some reforestation projects, these efforts still fall short of what the EUDR demands. As it stands, the government and stakeholders must ramp up their efforts to communicate these regulations to farmers, cooperatives and exporters. Failure to do so could result in a loss of market share for Ugandan goods, negatively impacting both the economy and millions of livelihoods.

To prevent a market collapse, the government and private sector will need to collaborate to offer support in the form of financial aid, education on sustainable practices, and technological infrastructure. This could mean anything from providing GPS tracking tools to creating a clear certification process that helps farmers prove their products are EUDR-compliant.

As of now, many farmers find themselves in limbo, uncertain about their ability to continue selling their produce to one of their biggest markets. The risk for Ugandan farmers is significant: if they can’t comply with these regulations, they may need to find new markets that aren’t as profitable as the EU. Even more concerning is that failing to adapt could result in complete exclusion from the European market—a devastating blow for a country whose economy heavily depends on agriculture.

Farmers in rural areas, in particular, face the greatest hurdles. Lacking access to the right tools, training, or even a clear understanding of what’s required, they risk jeopardizing their livelihoods. The challenge ahead isn’t just about saving trees; it’s about safeguarding Uganda’s farmers from economic disaster.

On that note, while the challenges posed by the EUDR are significant, there is potential upside for Uganda. If the country can effectively align its agricultural practices with the EUDR, it could enhance its reputation as a sustainable producer of high-quality commodities like coffee and cocoa. Sustainable farming practices often lead to improved long-term yields, better land management, and even higher prices in international markets where eco-friendly products are in high demand.

Uganda can also position itself as a leader in sustainable agriculture within the East African region. By investing in education, technology, and sustainable farming methods, the country could attract foreign investment and open new markets for its agricultural products. Transitioning toward sustainability could, in the long run, improve the resilience of Uganda’s agricultural sector and reduce its vulnerability to external shocks like fluctuating commodity prices or environmental disasters.

In other words, the European Union Deforestation Regulation presents a complex challenge for Uganda’s agricultural sector. While the regulation is a crucial step toward global environmental protection, it also places a significant burden on countries like Uganda, where farmers and traders may not have the resources to comply. Without targeted support, education and infrastructural development, Uganda risks losing access to one of its most important markets, potentially devastating its agricultural economy.

However, if the government, private sector and perhaps the international community can come together to address these challenges, the EUDR could become an opportunity for Uganda to embrace sustainable growth and enhance its position in the global agricultural market. Preparing for the EUDR today will be essential to safeguarding the future of Uganda’s farmers and ensuring their continued success in an increasingly environmentally conscious world.

Picture of Andronicus E. Muwanguzi
Andronicus E. Muwanguzi
Andronicus Enoch Muwanguzi is a passionate Ugandan writer, novelist, poet and web-developer. He spends his free time reading, writing and jamming to Spotify music.
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