Could the Right Digital Tools Transform EUDR Compliance from Burden to Advantage?

The European Union’s Deforestation-free Regulation (EUDR) requires companies producing, importing or exporting select commodities to prove their goods did not originate from deforested land or contribute to forest degradation. EUDR compliance changes how food manufacturers’ supply chains operate.

Industry professionals should view this regulation as a business opportunity, not a burden. With the right tools, they can expand their target demographic, strengthen brand reputation and increase customer retention.

What Companies Should Know About the EUDR

The EUDR technically became legally binding in June 2023, targeting popular commodities like palm oil, cocoa, wood, soy, rubber, cattle and coffee. However, the E.U. allowed a 12-month phase-in period in December 2024, giving medium and large companies 12 months to comply. Micro and small enterprises (MSEs) have until June 2026.

While these dates are fast-approaching, businesses have more than enough time to implement the necessary interventions. They should start with the fundamentals.

Why the Coffee Supply Chain Is in the Spotlight

Coffee is not just a commodity or a morning pick-me-up but a global sensation. For some, it is a lifestyle. They spend hours and thousands of dollars to pull a perfect espresso shot. In the United States, the arrival of fall is synonymous with “pumpkin spice season,” a commercialized cultural phenomenon dedicated to seasonal lattes.

In 2025 alone, the global at-home and out-of-home coffee markets generated over $485.59 billion in revenue. This popularity is not without its costs — this acclaimed crop has a history of environmental concerns.

The EUDR spotlit this sector’s supply chain because it contributes to deforestation. In Central America alone, growers have cleared more than 2.5 million acres to establish sun-grown coffee farms, which have higher yields than the traditional farms using tree canopy shade. Farmers clear-cut forests to make room for coffee trees.

How It Adds to Coffee Supply Chain Challenges

One of the top coffee supply chain challenges is fragmentation. Communication is challenging because many smallholder farmers — who grow 60% of the world’s coffee — lack access to modern technologies.

Even if farmers have messaging apps and email addresses, they may be unable to produce geolocation data, satellite imagery or detailed descriptions of forest degradation. Field audits are a possible alternative, but traveling from the E.U. to an equatorial country is expensive, especially since the EUDR mandates annual reviews.

What It Takes to Become Compliant With the EUDR

The cut-off date for deforestation was December 31, 2020. If locals cleared a forested area for agricultural use after this date, the EUDR prohibits goods sourced there from being traded on the E.U. market.

Businesses must establish and maintain a due diligence system to ensure EUDR compliance. MSEs and lone entrepreneurs must publicly report their steps to fulfill their obligations at least once a year. The due diligence statement template is the same regardless of commodity type or industry. It includes details like contact information, harmonized system code, country of production and geolocation data.

Reviewing Little-Known Compliance Considerations

Due to complex legal jargon, laypeople may not realize compliance extends beyond ensuring goods are deforestation-free. Several sections stand out in particular.

Packaging and Packing Material

While EUDR compliance does not extend to packaging that supports, protects or carries products — as long as it is not made available on the market in its own right — the European Commission reserves the right to review and update the regulation. One day, packaging and packing material may be subject to deforestation-free standards.

Eliminating unnecessary intermediaries may help streamline the process by reducing administrative overhead and preventing circumvention risks. Take nitrogen, for example, which increases food shelf life by slowing oxidation. It protects the rich oils and aromas that are tokens of freshly roasted coffee’s popularity, safeguarding taste and freshness. Preserving food this way requires specific flow rates and purity levels. An on-site generator introduces far fewer compliance obligations than a third-party supplier.

Local Laws

Growers often work long, tiring hours to cultivate and harvest their yields. Ripening windows are usually inconsistent, so they must pick coffee cherries individually by hand. Despite being fundamental to the supply chain, many receive little to no compensation.

Many industry professionals do their best to properly compensate their growers, suppliers and vendors. Since the EUDR mandates manufacturers to produce goods according to the country of production’s local laws, this practice is now mandatory. This includes abiding by land tenure laws and human rights standards.

Simplified Due Diligence

Those sourcing from low-risk countries benefit from simplified due diligence obligations. They do not have to assess or mitigate risks unless someone informs them of substantiated concerns indicating noncompliance. However, they must still evaluate supply chain complexity to determine circumvention risks.

As of 2025, the E.U. has placed countries of origin like Brazil, Colombia, Indonesia and Honduras in the standard risk category, meaning this simplified obligation is largely unavailable for food manufacturers in the coffee industry.

Digital Tools Transforming EUDR Compliance

Traders need their farm’s exact location. They can use coordinates or a two-dimensional polygon. Apps like TerraTrac allow for basic traceability. Publicly available maps like those from the Rainforest Alliance can also guide decision-making. Medium and large enterprises may prefer a platform that integrates with their enterprise resource planning software.

Traditionally, detecting deforestation as it happens is difficult. However, modern technologies make it straightforward. Global Positioning System mapping and geospatial tools provide more than coordinates. Professionals can layer descriptive attributes on top of a real-world location, mapping events, risks or objects to guide informed decision-making.

The blockchain provides a decentralized, immutable platform for tracking such data points. Business owners can seamlessly coordinate with everyone from growers to roasters. Since no one can edit or delete a block without every participant’s permission, tampering and fraud are practically impossible.

Artificial intelligence is another cutting-edge tool that can help streamline communication and decrease administrative workloads. It can translate messages, conduct risk analyses or automate reporting.

How the Right Tools Create Business Opportunities

Facing coffee supply chain challenges like fragmentation or insufficient digitalization does not have to be intimidating. With the right tools, it can even feel exciting. Comprehensive visibility enables brands to capitalize on consumers’ increasing sustainability awareness. They can provide QR codes with tracking data or personalize labels based on the product’s origin.

People will perceive these details as value-added features, incentivizing them to purchase. Early adopters can target sustainability-minded demographics, helping them strengthen brand reputation and unlock new market opportunities.

Even people who do not feel strongly about green or climate-friendly products will appreciate being able to verify their product’s origin and authenticity. Data is a moneymaker. It could enable companies to charge a premium for ethical, traceable goods — even if they do not change their formula or suppliers.

Brands Can Use EUDR Compliance to Their Advantage

Ensuring EUDR compliance will take time, but investing in the right digital tools — some of which are free — will streamline the process and create business opportunities. Those who change now could corner the market, ensuring success despite major regulatory changes.