Coffee Traders Rush To Ship To Europe Before Year-End – CoffeeTalk

Coffee cargoes are flooding Europe as traders rush to stock up on beans ahead of new environmental rules set to be implemented at the end of the year. The EU’s Deforestation Regulation (EUDR) requires importers to prove that commodities like coffee, beef, cocoa, and timber do not contribute to destroying forest land. Coffee is particularly 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 December 30.

Exports from Brazil to the bloc surged by about 65 percent in the seven months to last month compared with last year, while Ugandan exports saw an all-time high last month. The next robusta crop is in October, and almost all coffee from the next crop will have to be EUDR compliant.

Roasters want to cover any possible deficits for the first quarter of next year, but few traders are willing to risk shipping beans after October and miss the window for transporting uncertified beans. Higher prices, increased borrowing costs, container shortages, and longer transit periods are also adding to the challenges.

The path ahead remains uncertain as the European Commission has not published all the implementation details. Some producing nations are more unprepared than others, and some EU countries and industry groups have called for the rules to be revised.

Read More @ Taipei Times