Coffee Importers Rush Shipments Ahead of EU Deforestation Law

Coffee importers are accelerating shipments to the EU to avoid complications from the upcoming EUDR law, which bans products from deforested areas. The ICO reports dwindling stocks in producing countries as Europe faces potential supply issues. Exemptions for compliance are uncertain, affecting smaller African farmers the most.

Coffee importers have increased the pace of shipments recently, seeking to avoid problems after December when the European Union's Regulation on Deforestation Free Products (EUDR) enters into force, said the International Coffee Organization (ICO) on Wednesday. ICO Executive Director Vanusia Nogueira said coffee stocks at producing countries are falling as importers rush to send the beans to countries in Europe, ahead of the new legislation that will deny entrance of agricultural products produced on deforested land.

"Importers are speeding up shipments because there are questions about the law that the Europeans didn't answer yet," said Nogueira on the sidelines of the International Coffee Seminar 2024 in Santos, Brazil. "And who knows if we are going to have surprises?" she said.

The European Union is the largest market for coffee in the world, while the beans are produced in tropical countries. Nogueira said there is an expectation that the European Union would give an exemption on compliance during a certain period until producing countries and traders are ready to work with the new legislation, but that is not certain.

She said countries such as Brazil, Colombia and Costa Rica are more prepared to work with the EUDR, which requires certification that the coffee was not produced in deforested land, while small farmers in African countries would face more difficulties.