African farmers lose coffee orders due to new European law on forest protection

African farmers lose coffee orders due to new European law on forest protection

Kyiv  •  UNN

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EU importers are cutting back on coffee orders from smallholder farmers in anticipation of the deforestation law coming into effect. The law will have a significant impact on global markets for coffee and many other commodities.

European coffee importers are beginning to cut back on purchases from small farmers in Africa and elsewhere as they prepare to adopt a landmark EU EU law on deforestation. According to UNN, Reuters reports.

Details

Exporters interviewed by the publication pointed to a reduction in orders for coffee from Ethiopia in recent months, where about 5 million farming families depend on on the crop. They warned that the supply strategies adopted by companies in in connection with the entry into force of the law banning deforestation, threaten to to hit the budget of small farmers and raise prices for EU consumers.

I don't see any possibility to buy significant volumes of Ethiopian coffee in the future. coffee

- said Johannes Dengler, head of the German roasting company Dallmayr, which buys about 1% of the world's coffee exports.

Context

A new EU law will ban the sale of goods related to deforestation, which is the cause of climate change. At the same time, the law will significantly change global commodity markets. The grains purchased must meet the requirements of the law, which This means that they cannot be grown on plantations established in areas of deforestation.

Importers of commodities such as coffee, cocoa, soybeans, palm, cattle cattle, timber and rubber, as well as the products in which they are used, must be able to prove that their goods do not come from deforested lands, otherwise they face heavy fines.

The law was adopted because deforestation is the second most important cause of climate change after the burning of fossil fuels.

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