EU Deforestation Regulation's impact on coffee and cocoa

The EU Deforestation Regulation will bring major changes to coffee and cocoa supply chains, as the EU is responsible for 35% of global cocoa grindings and 32% of global green coffee imports.

It has taken a couple of decades for about 40% of EU coffee imports to be traceable. Fourteen months from now, those volumes need to more than double.

The cocoa supply chain is particularly affected given the small size of farms and the level of forward selling that is typical of the industry.

A lot of leadership will be needed across the coffee and cocoa supply chains to adopt the necessary changes and avoid a fragmented market.