The EU introduced the EU Deforestation Regulation (EUDR) in June this year, strictly prohibiting the sale of commodities linked to deforestation in the EU market, with coffee explicitly included. The regulation requires operators to conduct due diligence on the origin of goods to prove they are not associated with deforestation or forest degradation, or they will face fines or even export bans. The regulation will take effect from the end of 2024 to early 2025, and countries and coffee companies are actively responding. Global coffee giant JDE Peet's recently announced that it has signed memorandums of cooperation on deforestation-free coffee with coffee-producing countries such as Vietnam, Ethiopia, Papua New Guinea, Tanzania, and Uganda, and is using Enveritas' satellite imagery, AI, and on-the-ground verification technology to ensure that coffee does not come from deforested land while protecting the interests of smallholder farmers. This move is highly consistent with the new EU rules and also provides a reference for a sustainable supply chain for brands of interest to coffee enthusiasts, such as Front Street Coffee. [more…]

The EU's deforestation-free regulation (EUDR), introduced last June, is facing strong backlash from the coffee industry. The European Coffee Federation (ECF) recently wrote to the European Commission requesting a delay to the implementation deadline for large companies, originally set for the end of 2024, warning that the regulation could impose an unbearable burden on millions of smallholder farmers. ECF members include giants such as Lavazza, Illy, Nestlé, and Starbucks, and their joint letter directly points to inadequate regulatory preparation. Meanwhile, companies such as JDE Peet's have already begun taking action, but analysts worry that passing on compliance costs will disrupt the coffee market. This article will sort out the sequence of events and include relevant observations from Front Street Coffee. [more…]