FAO – Responsible Business Conduct Quarterly, Q4 2023

The FAO's Responsible Business Conduct Quarterly Bulletin (RBC-Q) provides updates on the organization's efforts towards responsible global value chains and developments in the agricultural sector. Prepared by the Markets and Trade Division (EST) of the FAO, this bulletin covers the period from April to June 2022, with some highlights from January to March 2022. In recent news, the Intercontinental Exchange (ICE) and the United Nations International Trade Centre (ITC) have raised concerns about the European Union's (EU) Regulation on deforestation-free products (EUDR) potentially leading to the destruction of coffee and cocoa currently stored in warehouses within the EU. The EUDR, which became effective in June, aims to prohibit the import of coffee and cocoa connected to deforestation in the EU market. However, the ICE and ITC have noted a possible risk for coffee and cocoa produced and stored in the EU during the transition period until December 2024, as they may be considered non-compliant with the regulation. This could result in the sale of these stocks outside the EU or their destruction. Such circumstances would have implications for producers and could disrupt the wider supply chains for coffee and cocoa commodities. EU Member States are currently engaged in discussions to find a solution for the stored crops imported during this transition period.