This post was originally published on The Economic Times
Coffee cargoes are flooding the European Union as traders rush to stock up on beans ahead of new environmental rules that kick in at the end of the year.
The EU’s Deforestation Regulation, or EUDR, will require importers into the bloc to prove that commodities like coffee, beef, cocoa and timber do not contribute to destroying forest land. However, a lack of clarity on the details has left many businesses inadequately prepared, making some supply disruption inevitable.
Coffee — a crop that is largely reliant on millions of small growers across a wide swathe of the globe — is especially vulnerable to the challenges of ensuring every bean is in compliance. So, traders have raced to ship as much as they can to Europe before Dec. 30.
Exports from top coffee producer Brazil to the bloc surged about 65% in the seven months to July compared to last year. Uganda — increasingly crucial for Europe’s robusta supplies after a massive shortfall in top grower Vietnam — saw exports touch an all-time high last month, with the bulk headed to the continent.
“This crop is effectively the last
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