European commission proposes adding instant coffee to deforestation regulation

The European Commission has put forward a proposal to extend its deforestation rules to cover soluble coffee. The move aims to close a loophole that allowed companies to bypass checks on imports.

Under the draft delegated regulation, instant coffee would fall under the EU Deforestation Regulation, or EUDR. Officials argue that excluding it creates an inconsistent approach and risks shifting deforestation rather than stopping it. The European Coffee Federation called the step an important move toward a clearer framework for the industry.

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The US Supreme Court has declared tariffs imposed on coffee imports by the Trump administration unconstitutional, potentially paving the way for refunds to affected roasters and importers. While the industry welcomes the decision for offering cost relief, questions remain over the process and timeline for reimbursements. The ruling highlights ongoing trade tensions that reshaped global coffee dynamics last year.

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The specialty coffee industry is expanding rapidly, with more roasters opening worldwide, particularly in emerging markets. This growth intensifies competition and squeezes margins for traders amid high costs and consolidation. Experts highlight both opportunities and challenges in the evolving supply chain.

The ongoing conflict in the Middle East has not directly driven up coffee prices, which remain stable amid predictions of record harvests. However, spikes in oil prices are increasing freight, energy, and fertiliser costs, posing indirect risks to the coffee industry. Escalating tensions between the US, Israel, and Iran have led to the closure of the Strait of Hormuz, disrupting global supply chains.

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The U.S. Supreme Court has ruled that the Liberation Day tariffs are illegal. This decision raises questions about whether affected companies, including those in the coffee industry, will receive refunds for payments made under these tariffs.

 

 

 

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