Coffee and cocoa in EU warehouses are under threat of destruction

“Producers need to sell these coffee and cocoa stocks during the transition period (until December 2024), otherwise they will have to sell them outside the European Union or destroy them,” said Pamela Coke-Hamilton, chief executive of the International Trade Center (ITC).

There are about 200 thousand tons of cocoa and 150 thousand tons of coffee in warehouses in Europe. However, according to the FT, there are still no clear instructions from Brussels and the governments of EU member states regarding them, and this is necessary to prevent the destruction of stocks.

The Intercontinental Exchange, one of the main trading platforms for coffee and cocoa futures, said it feared that confusion over the definition of stored commodities would "negatively impact commodity trading and responsible and effective risk management." Experts say this could cause disruptions affecting “the entire supply chain from farmer to consumer.”

According to the publication, about 70% of cocoa comes from Côte d'Ivoire and Ghana. The largest coffee producers are Brazil, Vietnam, Colombia and Indonesia.