EU Deforestation Law to Drive Global Supply Compliance

A new study reveals that the European Union deforestation law will likely compel major coffee firms to apply strict traceability rules across their entire global supply chains. Importers facing complex logistics find it more cost effective to extend compliance worldwide rather than run separate chains.

A worker drops coffee beans to dry at Los Pirineos coffee farm in Berlin, El Salvador, January 13, 2026. REUTERS/Jose Cabezas

The EU's new anti-deforestation law will compel coffee firms to apply traceability rules across global supply chains rather than just shipments destined for Europe, a study by non-profit Trase showed Tuesday morning. The regulation requires importers to trace beans back to original plots, driving sweeping operational shifts. Major traders handle 80% of global shipments, making unified compliance more cost-effective than running segregated supply networks.

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