Coffee, Candy Makers Score EU Deforestation Law

Chocolate and coffee makers including Italy's Lavazza and Cadbury-maker Mondelez are concerned about the "practicalities" of a new European Union (EU) law aimed at stopping deforestation, Richa Naidu, Maytaal Angel and Jessica DiNapoli reported for Reuters.

Photo Insert: Importers of coffee, cocoa, beef, soy, rubber, and palm oil must prove their supply chains aren't contributing to the destruction of forests, a cause of climate change, or be fined up to 4% of their turnover in the bloc.

The pushback comes despite voluntary, public commitments by the companies themselves and the broader coffee and cocoa industry to clean up supply chains using audits carried out by third parties like Fairtrade.

Agreed in December, the law is expected to come into force at the end of 2024.

Importers of coffee, cocoa, beef, soy, rubber, and palm oil must prove their supply chains aren't contributing to the destruction of forests, a cause of climate change, or be fined up to 4% of their turnover in the bloc.

Big investors told Reuters last month that concerns about their exposure to the issue could lead them to quit consumer goods makers with "risky" supply chains.

"It will be very difficult to implement this law in practical terms, because the coffee supply chain is very complex and traceability is very difficult," Lavazza Group Chairman Giuseppe Lavazza said.

Oreo-maker Mondelez told Reuters it is "not clear on how they (EU authorities) will control or implement this law.” There should be more dialogue about how to make something happen on the ground," Chief Executive Dirk Van de Put said.

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