FX.co ★ EU contemplates destruction of cocoa and coffee stocks

Bitter news for lovers of invigorating coffee and connoisseurs of cocoa, the EU leadership is prepared to destroy hundreds of thousands of tons of these products stored in European warehouses. The reason for this is the unforeseen consequences of the EU law combating deforestation, which came into effect in June 2023. Currently, the region's warehouses hold approximately 200,000 tons of cocoa and 150,000 tons of coffee. According to the rules, producers are required to sell these stocks during the transitional period, which extends until the end of 2024. Otherwise, they will have to sell them outside the EU or destroy them. Notably, the law relates to the ban on the import and export of goods produced as a result of deforestation and child labor. The list of such products includes palm oil, beef, coffee, cocoa, soy, and chocolate, as well as furniture and paper products that are not certified as originating from regions with environmental controls. Today, almost 70% of all cocoa in the world is grown in Cote d'Ivoire and Ghana, where mass deforestation and child labor have been documented. As a result, such products, according to the new EU law, do not meet the standards. However, there is still hope for a favorable outcome, as there have been no clear directives from Brussels and the governments of European countries regarding the implementation of this law.