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EU Deforestation Import Rules Nearing Start Draw Price Warnings From Retailers

Strict traceability requirements with penalties raise concerns over coffee supply.

Overview

  • Large companies must comply from December 30, 2025, with small and medium‑sized firms following by summer 2026 after a short transition.
  • The regulation covers coffee, cocoa, palm oil, soy, beef and wood, requiring GPS‑level origin data to show production did not involve post‑2020 deforestation.
  • Supermarket groups and industry economists warn of heavy bureaucracy and higher costs that could lift shelf prices, while REWE says price effects cannot yet be predicted.
  • Coffee is flagged as especially vulnerable, with the German coffee association citing roughly 20% farmer readiness and Darboven warning of possible raw‑coffee shortages.
  • Germany’s government is seeking exemptions for domestic farming and forestry and exploring a delay, while the European Commission says consumer‑price impacts should be limited.