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“Prices will rise significantly”: New EU regulation could cause coffee shortages

2024-03-17T04:06:53.468Z

Highlights: “Prices will rise significantly’: New EU regulation could cause coffee shortages. Germany imports almost 1.1 million tons of coffee every year, making it the second largest importer in the world after the USA. The background is an EU regulation for deforestation-free supply chains proposed in November 2021. Companies must prove that no forest was cleared or damaged to manufacture products after December 31, 2020. Anyone who does not comply with the regulation must expect high penalties amounting to at least four percent of their annual turnover in the EU.



As of: March 17, 2024, 4:54 a.m

By: Robin Dittrich

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Will coffee become scarce by 2025?

The industry has now expressed this fear - the EU Commission vehemently contradicts this.

Kassel – The prices of many foods have risen continuously in recent months and years.

The coffee industry fears the same thing will happen for coffee from 2025. A new EU regulation will therefore be problematic.

Is there a risk of a coffee shortage from 2025 due to a new EU regulation?

“We are threatened with an undersupply on the German and European markets,” warns the German Coffee Association.

This could cost a lot of money for many consumers: “The prices for the coffee that is still available will rise significantly,” it continues.

The EU Commission contradicts the warnings of the German Coffee Association.

Accordingly, there are no known facts that the regulation would increase food prices.

The EU Commission expects only a limited impact on coffee prices.

The industry fears that a new EU regulation could drive up coffee prices from 2025 onwards.

© ZUMA Wire/Imago (symbolic image)

The background is an EU regulation for deforestation-free supply chains proposed in November 2021 and passed almost a year ago.

Companies must prove that no forest was cleared or damaged to manufacture products after December 31, 2020.

In addition to coffee and cocoa beans, products such as chocolate, leather and furniture are also affected.

Anyone who does not comply with the regulation must expect high penalties amounting to at least four percent of their annual turnover in the EU.

Germany is the second largest coffee importer in the world – prices could rise

From the coffee association's point of view, the application of the new regulation must be postponed.

Otherwise, the existence of millions of coffee farmers worldwide could be threatened.

In terms of content, the association is definitely in favor of the new EU regulation, but the time pressure is too high.

The required current data must be available by the end of 2024.

However, many coffee farmers are lagging behind; only 20 percent of them are said to have met the requirements so far.

The responsible Federal Ministry of Food and Agriculture also wants to work for a solution that is acceptable to all parties: “In the area of ​​coffee trade, there are currently still hurdles in order to fully implement it by the end of the transition period.” Some large coffee manufacturers can also feel the time pressure of the regulation cannot understand.

Johannes Dengler from Dallmayr Kaffee spoke of a large administrative burden for companies and farmers.

All manufacturers want to adhere to the new regulations if they were given more time.

“The consequences will be a clear shortage in the supply of green coffee and prices will rise as a result,” warned a spokeswoman for Darboven.

Germany imports almost 1.1 million tons of coffee every year, making it the second largest importer in the world after the USA.

The green coffee is delivered to Germany from 15 to 20 countries, a large part of it from Brazil and Vietnam.

(

rd/dpa

)

Source: merkur

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