Vietnam – Ali Azakary | Qahwa World
On May 4, the European Commission published its “simplification” package for the Deforestation Regulation. Some saw it as genuine relief. Others called it cosmetic.
Qahwa World continues its interview series with industry experts. After Dr. Steffen Schwarz from Germany, Kim Thompson from Dubai, Burke Campbell from Honduras, and John Seroney from Kenya, our fifth guest is Michael Trung.
Michael is a specialty coffee consultant, SCA certified trainer, and founder of iO Coffee Vietnam. With 25 years of experience in international logistics and global trade, he brings a unique perspective on supply chain complexity, data sovereignty, and the real costs of compliance. He is known for his sharp critique of regulations that create administrative burdens without delivering meaningful value to farmers or consumers.
Here is what he said.
- What is your overall take on the EU simplification decision? Does it truly reduce the burden, or is it mostly cosmetic?
Michael Trung: Personally, I do not believe this EUDR “simplification” provides real value to farmers or consumers. From my 25 years in international logistics, it appears the geolocation requirements and increased documentation complexity will lead primarily to one outcome: increased costs for the entire supply chain.
The intention may be noble, but the instrument is flawed. Instead of empowering the farmer, these regulations act as a “compliance tax.” The producer pays for the paperwork, the middleman pays for verification, and the consumer pays a higher price – but the farm-gate profit rarely sees a meaningful increase.
- Who benefits the most from this simplification in your opinion?
Michael Trung: I see a clear and concerning parallel here with USDA and EU Organic certifications. Historically, those certifications have proven that while the intent is noble, the administrative and logistical costs often swallow the premiums.
The real beneficiaries are not the farmers. They are the compliance technology vendors, the auditing firms, and the large corporations that can spread these costs across massive volumes. Small and medium players get crushed by the overhead. The simplification does not change this structural reality.
- Soluble coffee is now fully covered, after being excluded before. How do you see this affecting coffee traders and roasters worldwide?
Michael Trung: Adding soluble coffee closes a loophole, but it also adds another layer of complexity to an already overburdened system. Soluble coffee supply chains are often multi-origin and fragmented. Requiring polygon-level traceability for every component will drive further consolidation.
The ones who will suffer are the smaller traders and processors who lack the infrastructure to meet these demands. They will either be forced into expensive partnerships or pushed out of the market entirely. The coffee itself will not become more sustainable – it will simply become more expensive to document.
- Is the global coffee supply chain truly ready for the December 30, 2026 deadline? If not, which part of the industry will take the biggest hit?
Michael Trung: No, the global supply chain is not ready. From my experience in logistics, the geolocation requirements and the need for verified polygon data across millions of small plots is a logistical nightmare.
The hardest hit will be the smallholder farmers and the small to medium exporters in countries like Vietnam, Indonesia, and parts of Africa. They lack the digital infrastructure and the financial resources to comply. The EUDR, with its mandatory geolocation, feels like “Organic Certification on steroids.” It moves beyond simple quality standards into a realm of data sovereignty and technical barriers that the global supply chain is simply not prepared for.
We need to ask: who controls this data? Who bears the cost? And what happens to the farmers who cannot afford to play the game?
Qahwa World – Episode Six tomorrow with Fabricio Scocco Fioravante from the Netherlands.
Read the related stories:
John Seroney: The Real Cost is Farm Mapping and Digital Registration
Kim Thompson: Sustainability Rules Must Not Punish the Producers Who Need Market Access Most
Dr. Steffen Schwarz: EUDR Simplification Remains an Administrative Monster
EUDR Simplification: Six Voices from the Coffee Industry Speak
European Commission Simplifies Deforestation Regulation.. What’s New?
