Honduras
EUDR Deforestation Rules Threaten Honduras' Coffee Sector
New EU deforestation rules taking effect in 2027 could shut out many of Honduras's 98,000 coffee growers, most of whom farm under 3 hectares and lack land-use documentation.
Coffee makes up about 5% of Honduras's GDP and supports 1.1 million jobs, more than any other sector in the country. More than half of the coffee it exports goes to the European Union. Starting January 1, 2027, the EU's Deforestation Regulation (EUDR) will require proof that coffee wasn't grown on land cleared after December 31, 2020, along with documentation of labor and human rights compliance.
A fragmented supply chain
About 98,000 coffee growers are registered in Honduras, and roughly 120,000 smallholder families depend on the crop. Most farm less than 3 hectares, and only a third belong to a cooperative or association that could help with compliance paperwork.
Awareness is low: only 44% of farmers know the EUDR's requirements, and just a third have completed compliance training. Though 70% believe they already meet the criteria, that perception often doesn't match the technical requirements. Only half of the 44,200 farms tracked by the Association of Honduran Coffee Exporters have been georeferenced, a step required for compliance that costs about $22.50 per 7-hectare farm.
Multiple competing traceability platforms have added confusion rather than a shared solution, and past attempts at a public platform stalled when companies were reluctant to share data. Importers that bring in noncompliant coffee face fines of up to 4% of their annual EU turnover.
Coffee lovers can track where their cup comes from with Cortado, which maps specialty cafes and roasters worldwide.