Shortages, spike in prices of coffee looms, industry group warns

 

BERLIN – Consumers could face shortages in coffee supplies and higher prices as of next year, a German industry group has warned, pointing to a new regulation.

Companies do not have enough time to implement an EU regulation proposed in November 2021 and adopted around a year ago, the association said.

The German group is referring to an EU regulation for deforestation-free supply chains, which came into force last year and is to apply from December 30.

Companies in future will have to submit a due diligence declaration stating that no forest has been cleared or damaged for their product after December 31, 2020.

“We are threatened with a shortage on the German and European market. The prices for the coffee that will still be available will rise significantly,” the German Coffee Association said.

The European Commission disagreed, telling dpa it knew of no facts that would allow the conclusion that the regulation would drive up food prices.

The impact on the prices of the raw materials covered by the regulation is expected to be very limited, the commission said in response to a query.

Holger Preibisch, who heads Germany’s coffee association, is calling for the application of the EU regulation to be postponed.