Daily Coffee Report 8/5/26
Daily coffee report
StoneX Coffee Team
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How New Legislation Can Affect the Global Coffee Sector
By: Alexis Rubinstein, Managing Editor - Coffee Network
How New Legislation Can Affect the Global Coffee Sector CoffeeNetwork (New York) - Today, Members of the European Parliament adopted the Directive on Corporate Sustainability Reporting (CSRD) that will require European companies and companies operating in the EU to publish an annual report assessing their corporate and social responsibility.
The directive will apply to large companies, and will enable the public and authorities to measure the impact of their activities on the environment, social inclusion and human rights and the fight against corruption. The Greens/EFA Group have negotiated substantial improvements to the directive, especially with regards to climate responsibility. The directive includes a review clause that will allow for the spectrum of companies covered to be broadened.
Kira Marie Peter-Hansen, Greens/EFA MEP and European Parliament rapporteur for the Directive on Corporate Sustainability Reporting (CSRD) for the Employment and Social Affairs Committee, comments:
“The adoption of this directive is an important step. Large companies will be obliged to publish their climate trajectory and plans to reduce their absolute greenhouse gas emissions. This is a victory in the fight against climate change.”
But how could this new legislation impact coffee imports to the EU?
The new law now makes it obligatory for large companies that sell goods in the EU to verify that their products have not been produced on deforested or degraded land and produced in accordance with human rights provisions in international law.
Coffee is one of the products covered in this new law. This now means a significant increase in paperwork and information that will need to be provided.
Within the EU, big changes are also coming. According to Michael von Luehrte, of the Swiss Coffee Trade Association, there are major changes to the agricultural agenda coming, including a reduction of pesticides by 30% by 2030 and a reduction of fertilizer use by 50% by 2030. “No one really looked at the implications of these new regulations,” he said. “How will this impact food security?”
And how will this translate to producing countries? “There will be new minimum residue levels, new trade tariffs, it will be much harder for the coffee farmers now,” he explained. Traders and roasters will have to ask for a lot more data.
Bans on pesticides could also impact coffee imports. According to von Luehrte there were about 240 pesticides on the most recent list that the EU is trying to ban. Most relevant to coffee is glyphosate, a pesticide used widely in Brazil. “If they decide to ban this in the EU, we don’t yet know what the ramifications for that would be on the import side,” he said.
In the US, time is also of the essence. With a December 15th deadline quickly approaching, it is now the responsibility of the National Coffee Association (NCA) to submit information on deforestation in coffee.
“Coffee is different and shouldn’t be just lumped in with a group of other commodities that are cultivated on deforested land,” said William Murray, President of the NCA. “It’s imperative that that discussion shifts to what we are currently doing and how can we accelerate the changes that we are already implementing.”
Coffee professionals in producing countries are in agreement that it is now imperative to educate politicians on how coffee is different.
“These new regulations put pressure on the global supply chain,” said Marcos Matos with the Brazilian Coffee Exporters Association, CeCafe. “We have to invite politicians to visit coffee producing countries, to see our commitment and efforts made.”
“It is time to get our governments to understand what happens on the ground,” echoed Juan Esteban Orduz from the Colombian Coffee Federation. “We must exercise our influence.”
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