Ahead of EU’s deforestation law, coffee shipments increase: ICO
The International Coffee Organization (ICO) has observed a surge in coffee imports to Europe before the implementation of the European Union’s Regulation on Deforestation-free products (EUDR). The EUDR aims to ensure that products consumed by EU citizens do not contribute to global deforestation or forest degradation.
Read more: Climate bonds standard expands certification to promote deforestation-free agri-food chains
Although beans are most commonly produced in tropical countries, the EU is world’s largest coffee market.
The upcoming legislation, which will bar the entry of agricultural products from deforested areas, is already impacting coffee stocks. ICO Executive Director Vanushia Nogueira revealed that coffee stocks have started to fall in producing companies as importers scramble to ship beans to Europe.
“Importers are speeding up shipments because there are questions about the law that the Europeans didn’t answer yet,” Nogueira told Reuters on the sidelines of the International Coffee Seminar 2024 in Santos, Brazil.
While it is anticipated that the European Union may grant a compliance exemption for a certain period, ideally until coffee-producing countries and traders are fully prepared to adhere to the new legislation, Nogueira cautions that this is yet to be a certainty.
The EU’s Regulation on Deforestation-free products require certification that the imported coffee was not produced on deforested land. Nogueira also highlighted that countries such as Brazil, Columbia, and Costa Rica are more prepared to work with the upcoming legislation.
However, she added, small farmers in African countries would face more difficulties.
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