Coffee is a beloved beverage, with about 2 billion cups consumed daily worldwide. However, new European Union regulations set to take effect in 2026 will require coffee sellers to prove their products are "deforestation-free." This means that every coffee product must come from land that has not been cleared of forest since the end of 2020. The EU Deforestation Regulation aims to combat global deforestation driven by consumption.
• Companies must trace coffee back to its exact origin and provide geolocation data to EU authorities.
• Small farms may struggle to meet these requirements, risking their market access.
• Larger growers with existing tracking systems may benefit and gain market share.
• The regulations could lead to higher prices for consumers and shift global trade dynamics.
These changes are significant as they aim to promote sustainability in coffee production. However, they may also create challenges for small farmers and affect coffee prices globally. The push for traceability could reshape the coffee market, making it crucial for consumers to understand the implications of these new rules.
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