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EU’s New Organic Regulation Reshapes Coffee Value Chains Worldwide

A scenic mountain view with blooming coffee plants, symbolizing sustainable and organic coffee cultivation in natural harmony.

Brussels – Qahwa Wolrd

The European Union’s latest update to its organic regulation—Regulation (EU) 2018/848, which took full effect on October 1, 2025—marks a pivotal moment for the global coffee sector. The law replaces the long-standing “equivalency” model for non-EU organic imports, introducing a unified standard that all producers must now meet to access the European organic market.

A Tougher Landscape for Organic Coffee

Coffee producers and roasters are navigating a period of significant disruption. The EU’s new organic legislation joins other major frameworks such as the Deforestation Regulation (EUDR) and mandatory Due Diligence rules, forming part of a broader push for transparency and sustainability across agricultural supply chains.

Globally, organic coffee represents a small but valuable portion of the estimated 11 million metric tons of coffee produced each year. Its importance lies in the specialty and premium markets, where consumers demand traceability and environmentally responsible sourcing. Yet, for thousands of smallholders in Latin America, Africa, and Southeast Asia—many of whom have long relied on local certification systems—the new EU framework introduces new hurdles.

Under the previous equivalence system, non-EU countries could certify organic products according to their own standards, provided they broadly aligned with EU rules. That flexibility has now ended. From October 2025, all organic coffee imported into the EU must fully comply with the EU’s own organic standards, covering soil fertility, crop rotation, certification procedures, and cooperative governance structures.

Key Changes and Their Impacts

1. End of the Equivalence Model
All non-EU organic producers must now adhere directly to EU standards. The change eliminates national variations, enforcing uniform practices such as strict crop rotation, total prohibition of synthetic inputs, and certification of entire farming units as organic.
Impact: The removal of flexibility poses particular challenges for smallholders working in agroforestry or mixed-farming systems, who may now need to alter long-established practices or risk losing access to the EU market.

2. Stricter Group Certification Rules
Only legally recognised cooperatives or producer associations can now hold organic certificates. Private companies can no longer do so on behalf of farmers. Additionally, groups are limited to a maximum of 2,000 producers, and mixed groups—containing both organic and non-organic members—are prohibited.
Farms larger than five hectares or with annual sales above €25,000 must undergo individual audits.
Impact: Compliance and administrative costs are increasing sharply. Many smallholders face the burden of restructuring cooperatives or creating new associations to meet the legal requirements, potentially pushing the smallest players out of the organic sector.

3. Mandatory Three-Year Transition Period
All farms must now complete a minimum three-year conversion process before qualifying for organic certification—regardless of their previous practices or ecological conditions.
Impact: This universal rule raises barriers for newcomers, slows returns on investment, and could reduce the number of regions entering the organic coffee market.

4. Stricter EU Controls and Testing
Certification bodies must now be EU-recognised, and all coffee lots are subject to more frequent laboratory testing for chemical residues. Delays of one to two weeks are common as producers await results before exporting.
Impact: These tighter controls safeguard label integrity but cause certification bottlenecks, increase costs, and delay shipments—particularly harming smallholder-based supply chains that operate on thin margins.

5. Rising Costs and a Shift in Market Dynamics
The cumulative effect of these measures is a rise in certification expenses and operational complexity. The stricter requirements are expected to reduce the supply of certified organic coffee, driving up prices in Europe and possibly pushing exporters to target less-regulated markets.
Impact: European roasters face tighter supplies and higher costs, while producers are forced to balance compliance with commercial viability.

Implications for Coffee Roasters

The new framework compels European roasters to reassess sourcing strategies and brand positioning:

EFICO’s Role in Supporting the Transition

Belgium-based EFICO, a major green coffee importer, is assisting roasters and cooperatives through this regulatory transition. The company offers three main sourcing options:

EFICO’s Certified Organic Portfolio:

EFICO continues to guide partners on certification strategies and compliance requirements to help maintain a stable and transparent coffee supply chain amid Europe’s evolving organic landscape.

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