Africa: Coffee Prices Surge On EU Deforestation Rules

Coffee prices have surged to record levels in the latest auction due to strong demand ahead of the European Union’s deforestation regulation, with Kenya’s Arabica reaching $276 per 50-kilo bag, the highest since October. Concerns over potential supply disruptions from the EU regulation have caused global futures for Arabica to hit a 13-year high, impacting leading exporters like Ethiopia and raising compliance challenges for traders and farmers. The EU’s stricter deforestation rules are expected to affect coffee exports from countries like Brazil and Indonesia, with significant implications for small-scale farmers and the European market’s importance to Kenyan coffee.

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