Global coffee traders rush to ship beans ahead of EU deforestation law

The article highlights the rush of coffee cargoes into the European Union (EU) as traders attempt to meet the requirements of the EU's Deforestation Regulation (EUDR), which comes into effect by the end of the year. This regulation imposes the responsibility on importers to ensure that commodities like coffee, beef, cocoa, and timber do not contribute to forest land destruction. The lack of clarity around the regulation has led to supply disruption, prompting traders to quickly export as much coffee as possible to the EU. As a result, coffee exports from major producers like Brazil and Uganda have seen a significant increase. However, the surge in exports has also led to higher prices for beans, along with challenges such as increased borrowing costs, container shortages, and longer transit times. Some EU countries and industry groups have called for the rules to be amended, and there are concerns that the lack of clarity could result in fewer shipments, potentially driving up prices.