Coffee review

The weather affects coffee production in African countries, and new EU rules make it difficult for importers to import African coffee beans.

Published: 2024-06-25 Author:
Last Updated: 2024/06/25, Coffee production in Africa has declined due to the El Ni ñ o phenomenon. Earlier, many coffee-producing countries in Central America were affected by El Ni ñ o, resulting in severe weather such as droughts or floods. In particular, coffee production in Brazil and Colombia has been affected. African countries are also affected by the weather. Recently, Reuters

Coffee production in Africa has declined due to the El Ni ñ o phenomenon. Earlier, many coffee-producing countries in Central America were affected by El Ni ñ o, resulting in severe weather such as droughts or floods. In particular, coffee production in Brazil and Colombia has been affected.

African countries are also affected by the weather. According to state regulators, Uganda's coffee exports fell 4.8% in November from a year earlier, due to heavy rains, which delayed harvesting and disrupted the drying process, Reuters reported. The Ugandan Coffee Development Agency (UCDA) said in a report that the total amount of goods was 425525 bags (60 kg / bag). Uganda is the largest exporter of coffee in Africa, followed by Ethiopia, where income from coffee crops is the main source of hard currency, earning nearly $1 billion a year from coffee exports.

Earlier, the EU issued the EU deforestation regulations (EUDR), which stipulates that no individual or enterprise can sell products related to deforestation, including coffee and cocoa, in the EU market. The bill requires operators to conduct due diligence on their products and trace the origin of the goods they sell to determine that they are not involved in deforestation or cause forest degradation, otherwise they will face a series of penalties such as fines, restrictions or export bans.

As a result, companies importing coffee beans from the European Union have recently begun to reduce their purchases by small farmers from Africa and elsewhere, mainly because of the European Union deforestation regulations (EUDR). The law forbids the sale of goods related to forest destruction. According to industry sources, it will be more expensive and difficult for African countries to comply with EU deforestation regulations (EUDR).

Coffee orders from Ethiopia, where about 5 million farmers depend on coffee crops, have dried up in recent months. The procurement strategy adopted by companies before the law may increase the poverty of small-scale farmers and raise prices for EU consumers, while undermining the EU's reduced impact on forest protection.

An importer executive said that there is no way to buy large quantities of Ethiopian coffee in the future because the coffee beans ordered now have been certified and can enter the coffee products sold in the European Union in 2025. Although the final implementation of the law has not been finalized, it must now meet the requirements of the EU deforestation regulations (EUDR).

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