Starting in 2024, coffee could become a luxury item in the European Union (EU) due to new regulations to combat deforestation. The European Union Deforestation Regulation (EUDR), which took effect on June 29, 2023, is designed to prevent the import of coffee beans, along with other products such as palm oil, cocoa, and beef, from deforested or degraded lands. Companies that fail to comply it by the end of 2024 will face steep fines.
The regulation requires that all coffee producers exporting to the EU provide detailed data on the land where their crops are grown, ensuring that no deforestation occured after December 31, 2020. This rule has already led to record-high prices for robusta and arabica coffee, with the International Coffee Organization (ICO) warning that Europe could face coffee shortages next year.
The move has sparked concerns across multiple sectors, with smaller farmers in Asia, South America, and Africa expected to bear the brunt of the changes. Experts also point to potential disruptions in supply chains, affecting industries beyond coffee. Despite calls to delay implementation, the European Commission has no plans to postpone the deforestation rules, intensifying uncertainty for both businesses and consumers as the deadline approaches.