EU deforestation law may push coffee firms to trace entire supply chains

  • EU deforestation rules will push many coffee firms toward supply-chain-wide compliance.
  • 80% of global coffee shipments are handled by firms supplying the EU.
  • EUDR compliance requirements begin at the end of December.

The EU Deforestation Regulation (EUDR) will require coffee importers from end-December to show that their products were not made with raw materials from deforested land, including by tracing those materials to the plots where they were grown. A Trase study says coffee producers that send most, but not all, of their output to the EU may find it cheaper to apply the rules across their entire supply chains than to maintain separate EU and non-EU channels. The EU represents about 40% of global coffee imports, while companies supplying the bloc handle nearly 80% of global coffee shipments. JDE Peet’s sends 84% of its beans to the EU, compared with 63% for Louis Dreyfus and 53% for Neumann Gruppe. Trase said the regulation could therefore have an impact well beyond the EU, while its findings challenge concerns that compliance would create segregated supply chains and exclude small-scale farmers from the European market. The study said companies already serving both EU and non-EU destinations may be able to adopt similar standards outside the bloc more easily. The regulation aims to address the 10% of global deforestation attributed to EU imports; deforestation is the second-leading cause of climate change after fossil-fuel burning.

The information on this website is generated using AI and we cannot guarantee its accuracy. Please use it as reference information only.
EU deforestation law may push coffee firms to trace entire supply chains - CoinPost Terminal