New EU deforestation regulations may cause a significant rise in coffee prices, warns Giuseppe Lavazza, chairman of Lavazza. The rules, aimed at preserving forests, require coffee producers to use satellite coordinates for mapping their farms, posing a challenge for farmers in developing nations who lack the necessary funds and technical expertise. This could result in many coffee bean exports to the EU being rejected, leading to market distortions and increased regulatory burdens on coffee importers. The rising costs and complexities may even drive some EU coffee roasters to relocate their operations outside the bloc. The coffee industry is already grappling with price hikes due to droughts and geopolitical crises like the Red Sea shipping delays. These new regulations could further strain the supply chain and exacerbate the situation. The European Commission, however, argues that the regulations will not impose significant burdens on farmers and are essential for reducing the EU's carbon footprint.
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