EU confirms one-year delay to deforestation regulation

Editor’s note

On Thursday 14 November, the EU confirmed a one-year delay to its landmark deforestation regulation – poignantly coinciding with COP29 taking place in Azerbaijan.

For the coffee industry, this means medium and large-sized farms, traders, and roasters will now have until 30 December 2025 to prove compliance, whereas smaller companies have an additional six months on top of the deadline.

In addition to the postponement, EU lawmakers also voted to introduce a “no-risk” category – meaning countries that the bloc considers to pose no threat of deforestation won’t need to comply. NGOs and charities have criticised both decisions, claiming they undermine environmental efforts and could create “dangerous loopholes” that allow trade bans and hefty fines to be avoided.

Many producers, roasters, and traders are likely to be relieved about the decision to delay, granting them much-needed time to prepare and organise for what is one of the biggest changes to the coffee trade in its history.

Shortly after the vote results were announced, the C price reached over US 270 cents – its highest level since early October. Just how the EUDR delay could further influence prices remains to be seen.

Source: https://perfectdailygrind.com/2024/11/coffee-news-recap-15-november-2024/