What do you ask yourself when you choose your coffee? 

What does it taste like, obviously, and how much does it cost? 

How about where and how it was grown? And is it being sustainably grown? 

That last question is about to become the most important for the coffee industry as we approach the end of the year and the introduction of the European Union's Deforestation Regulation (EUDR). 

Coming into effect at the stroke of midnight on December 30, EUDR aims to ensure that products entering the EU market - including coffee - are not linked to deforestation or forest degradation. 

This isn’t just another piece of legislation - it’s a potential game-changer, as it will significantly impact the coffee industry, home to one of the world's most complex supply chains.

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What is the EUDR? 

From 30 December 2024, companies will have to prove that the soya, cattle, oil palm, wood, cocoa, coffee and rubber they import into the EU, export from the EU or place on the EU market do not come from any area deforested since December 2020. 
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A Huge Market with High Stakes

Understanding the implications of the EUDR is crucial, especially for those involved in the coffee trade. Europe is a massive market for coffee, accounting for 31% of global consumption in 2022, and this share is expected to grow. Non-compliance with the EUDR could result in losing access to this vital market, which would be a severe blow to coffee traders and roasters. 
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A Rush to Beat the Deadline

With the enforcement of the EUDR looming, there's been a noticeable increase in the sheer amount of coffee being imported into the EU before the year-end deadline. 

The Taipei Times reported a 65% increase in coffee bean exports to the EU in the last seven months, while ‘Ugandan exports saw an all-time high last month, with the bulk headed to the continent.’ 

Few traders are willing to take the risks of shipping beans towards the end of the year, with so much uncertainty surrounding EUDR and its implementation. 

This influx of coffee comes at a time of enormous change - instant coffee Robusta beans have been at their highest price for nearly 50 years, while prices for high-quality Arabica beans have surged by 30% just this year.

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Navigating a Complex Supply Chain

The complexity of the coffee supply chain adds another layer of challenge. Coffee's journey from farm to cup winds its way through many intermediaries, making traceability a longstanding issue. A standard supply chain will encompass growers, processors, intermediaries, exporters, suppliers, roasters, retailers and - finally - consumers. Proving traceability and compliance at every step of the supply chain is a huge undertaking. 

Larger growing corporations will likely have the size and scale to meet the EUDR. But what about small-scale farmers? Will they be able to prove their traceability? 

What will be the repercussions of not meeting EUDR?

Will coffee growers bypass the EU bloc and sell to other markets with less stringent regulations?

And how will the EUDR affect the price of coffee, given the pricing turmoil across the market already?

With the deadline approaching, there are still lots of questions regarding EUDR and its implementation.
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An Opportunity for Sustainability

While the EUDR presents challenges and raises many questions, it also offers an opportunity for the coffee industry to embrace sustainability. 

At its core, EUDR is about sustainability, transparency and traceability, all business traits increasingly valued in the EU market.

Although the UK isn’t covered by EUDR, it plans to introduce similar deforestation legislation in the coming years, and some companies, like Source Coffee in Harrogate, are already ahead of the curve. 

Their coffee includes a QR code that lets customers ‘see the provenance story of the coffee’ alongside compostable coffee pods. Their founder, Cristina Talens, is also a key part of the Bank of Carbon initiative that ‘protects, plants, and restores trees and forests in the UK and across the world.’

Proactive compliance with EUDR could give UK businesses willing to adapt a competitive edge. By implementing due diligence systems and strengthening relationships with producers, companies can not only comply with the new regulations but also innovate and create more resilient supply chains.

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What Does This Mean for Coffee Drinkers

EUDR will add another layer of bureaucracy to the supply chain, almost definitely resulting in a price hike that may well be passed onto the customer. Will EUDR change the availability of coffee? As with the rest of the EUDR questions, only time will tell. 

Importantly, for many coffee drinkers, your cup of joe will likely be sourced from suppliers committed to saving our global forests. EUDR will likely reshape the coffee market, ensuring one question you don’t need to ask when picking up your daily brew is, ‘has this coffee been sustainably grown?’ 

Need Help With Your Sustainability Marketing?

If you’re struggling to understand sustainability and how it can positively impact your marketing, One Nine Nine is here to help. We work with a wide range of clients including KTC, Daabon and Axiom across a wide range of sustainability issues. Our team of experts specialises in sustainability marketing and can assist you in crafting genuine, compliant, and impactful green claims.

By staying informed and proactive, your business can avoid penalties and position itself as a leader in sustainability. Let’s work together to make your green claims credible and compelling.

To learn more about how we can help your business with sustainability comms and marketing team at 01138444111 or email us at contact@oneninenine.agency today.

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