Coffee and cocoa are plentiful, but can be brutally expensive

By: Trademagazin Date: 2023. 12. 04. 12:34

The EU regulations that entered into force in the European Union in June, prohibiting the trade of products that can be partially or fully traced back to deforestation, may lead to huge chaos in the coming years. According to the regulation, hundreds of thousands of tons of coffee and cocoa stored within the EU are at risk and may be destroyed due to the new regulations.

According to the call issued jointly by the Intercontinental Exchange (ICE) and the United Nations (UN), consumers will be forced to pay the price of EU greening for products stored in EU warehouses. The transition period provided by the law lasts until the end of 2024, however, according to experts, there is still a lot of uncertainty and confusion due to the huge amount of coffee and cocoa.

ICE executive director Pamela Coke-Hamilton said that while market exposure within the transition period was acceptable, holding back until the end of the transition period could be a problem. He pointed out that manufacturers have so far not made adequate efforts to comply with the new rules, and this could cause serious difficulties and disruptions in the market.

Coffee and cocoa industry players must take urgent measures to comply with EU regulations to avoid product losses and consumer dissatisfaction.