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
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.