Coffee maker Lavazza calls for further delay to EU deforestation law

By Nigel Hunt

LONDON (Reuters) -Coffee maker Lavazza on Wednesday called for the European Union's deforestation law to be delayed by a further year, saying implementation would hurt producers in Africa and Central America and drive up prices.

The proposed law, which aims to end the estimated 10% of global deforestation fuelled by EU consumption, requires companies importing goods like soy, beef, cocoa, coffee, and related products to prove their supply chains do not contribute to the destruction of the world's forests, or face hefty fines.

"We call that the legislation, especially for coffee, be postponed for another year," Lavazza chairman Giuseppe Lavazza told reporters at an event in London.

He said the cocoa industry was better prepared than coffee as it had fewer producing countries.

The proposed law could potentially be more damaging to the coffee market than tariffs, the chairman said, adding it would be very difficult for countries like Ethiopia to comply with the new rules due to a lack of clarity around land ownership.

Lavazza was echoing a similar call this month from Mondelez, parent of chocolate maker Cadbury.

However, such views clash with companies including Nestle, the world's largest packaged food maker, which wrote to the European Commission last week in support of the deforestation rules. A delay would damage the credibility of the EU, their letter, seen by Reuters, said.

"Any postponement or weakening would create a dangerous regulatory vacuum, represent a step backward politically and economically, and penalize the very companies that have long invested in responsible sourcing," said the letter, signed by companies including Nestle, Ferrero and Danone.

Environmental groups also oppose efforts to postpone or weaken the legislation.

"Re-opening the law now would be catastrophic for the EU’s reputation as a business partner and would be a disastrous signal in the run up to COP30 in Brazil,” Hannah Mowat, campaigns coordinator at Fern, said.

The EU has already delayed the law's launch by a year to December 2025, following complaints from trading partners including Brazil and the U.S., and cut back reporting rules after industry criticism.

(Additional reporting by Kate Abnett in Brussels and May Angel in LondonEditing by Mark Potter)