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July 18, 2022
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EU regulations would impact the coffee supply chain

The 'subprime' crisis in the coffee sector

Within the framework of the third World Forum of Coffee Producers (Fmpc), held virtually on July 12, it was noted that new regulations contemplated by the European Union (EU) for the importation of agricultural products, reflect serious risks of affecting the coffee supply chain, according to the panelists.

(Read: As of April, fertilizer imports rose 197%).

For the National Coffee Federation (Fedecafé), the EU regulations, such as the traceability of crops, to identify that the country does not contribute to deforestation, are considered unrealistic, among other reasons due to the limitations faced by the producing families, such as limited digital access in coffee regions to implement the traceability of an agricultural product from the farms.

In accordance with Juan Esteban Orduz, director of Fedecafé in North America and coordinator of the World Forum of Coffee Producers“the environmental regulations that developed countries are placing not only affect the coffee sector but also various agricultural producers, since they are not connected to reality.”

“They say that any product that is produced with deforestation cannot enter the European Union. However, this must have complete traceability to the farm, which when looking at them in practice cannot be applied, since it costs a lot of money that the coffee grower will not be able to pay, “he assured.

Other issues to be discussed were the digital part, which for the North American director of Fedecafé “most of the producing countries have serious connectivity problems. This can lead producers to decide to venture into other practices of domestic crops, such as livestock. The final purpose, which although well-intentioned, may end up having collateral effects for the peasants”.

Exports to the EU

According to data from the National Administrative Department of Statistics (Dane), with analysis by ProColombia, between January and May 2022, Colombia exported US$443 million worth of coffee to the EU46.3% more than in the same period of time in 2021.

The main countries to which Colombian coffee was exported were Belgium, with a sale of US$138 million, and Germany, which reached US$124 million. In the case of Spain, US$45 million were exported, in Italy, there were sales of US$41 million and Finland with US$27 million.

(Also: In nine cities, 6.3 million live with inflation greater than 10%).

Likewise, the Netherlands (US$23 M), France (US$12 M), Sweden (US$9 M), Greece (US$4 M), Romania (US$4 M) and Ireland (US$2 M).

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