Southeast asian small farmers face uphill battle complying with eu’s new deforestation-free trade rules

Small-scale farmers across Southeast Asia are struggling to prepare for the European Union’s sweeping new deforestation regulation, which could potentially shut them out of lucrative European markets despite their significant contributions to regional agriculture. The EU Deforestation Regulation (EUDR), now set to take effect at the end of 2026 after a second postponement, will require companies to prove that seven key commodities—including coffee, palm oil, rubber, cocoa, cattle, soy, and timber—are completely deforestation-free throughout their entire supply chains.

The regulation particularly threatens smallholder farmers who produce substantial portions of Vietnam’s coffee, Indonesia’s palm oil, and Thailand’s rubber destined for European markets. According to Martin Greijmans, community enterprise program lead at RECOFTC, a Thailand-based forest conservation nonprofit, many small producers lack both the financial resources and technical capacity to meet the new tracking and compliance requirements. This creates a troubling scenario where larger agricultural operations, better equipped to navigate complex regulatory frameworks, could squeeze out smaller competitors.

The challenge extends beyond just paperwork and technology. Many smallholder farmers remain unaware of how these regulations will impact their livelihoods, highlighting a critical information gap that governments and private companies have yet to address adequately. While environmental experts praise the EUDR as a necessary step to reduce Europe’s contribution to global deforestation, they warn that without proper support systems, the regulation could inadvertently harm the very communities it aims to help by promoting sustainable farming practices.