How Could the EU's Pesticide Move Affect Coffee Trade?
Coffee

How Could the EU's Pesticide Move Affect Coffee Trade?

S
StaffMag
August 19, 20268 min0

A new JRC study by the European Commission examines how trade and prices could be affected if the residue limits for 18 dangerous pesticides banned in the EU are lowered in imported products. Coffee is among the 235 agricultural products covered.

How Could the EU's Pesticide Move Affect Coffee Trade?

The European Union's approach to pesticide residues in imported agricultural products may enter a new phase. A study published by the European Commission's Joint Research Centre (JRC) on August 11, 2026, models the economic consequences that could arise if the maximum residue limits for the 18 most dangerous pesticides not approved for use within the EU are lowered to the measurement limit in imported products. Coffee is included among the 235 agricultural products examined in the study.

This study does not announce a new law for coffee. However, it provides a strong signal regarding the potential future compliance costs for producers selling green coffee to the European market, exporters, and roasters sourcing from this market.

The main issue the coffee sector needs to pay attention to is not just whether a pesticide exceeds food safety limits. The approach being discussed by the EU aims to limit the return of the most dangerous substances banned for health or environmental reasons within its borders through imported products. The European Commission has clearly defined this as one of its policy objectives by the end of 2025.

What is MRL and why does it concern coffee trade?

The Maximum Residue Level (MRL) in EU legislation refers to the highest amount of a pesticide legally allowed to be present on food or feed when used according to good agricultural practices. The European Commission states that MRLs apply to both products produced in the EU and those imported into the EU.

Exceeding this limit in imported coffee could directly pose problems for the commercial circulation of the product. Under the current system of the Commission, member states conduct border controls, and shipments that do not comply with the established MRLs can be rejected at the EU border.

The new discussion goes beyond the existing food safety system.

The Commission is working on a stricter approach to ensure that the most dangerous pesticides banned for health and environmental reasons in the EU do not re-enter the European market through products produced in third countries. The study initiated in November 2025 aims to provide data for a broader impact analysis assessing the economic and international trade consequences of this principle.

The study covers 18 active substances, 235 products, and 86 exporting countries

The JRC study identified 18 dangerous active substances that are not approved in the EU and have current MRLs above the measurement limit. The usage and trade connections of these substances were modeled through 235 products and 86 exporting countries. Coffee is one of the product groups in the study.

In all three main scenarios of the research, the same general trend emerges: tightening residue limits could lead to a decrease in EU imports, an increase in agricultural production within the EU, and upward pressure on consumer prices.

However, the magnitude of the impact entirely depends on how well the producing countries can comply with the new standards.

In the strictest theoretical scenario where producing countries achieve no compliance, a decrease of up to 41% in total EU agricultural imports covered by the study is calculated. In scenarios where production methods can be adapted, the loss can shrink to 8% and even 0.4%.

It is important to emphasize that this does not mean that coffee imports will decrease by 41%. The JRC calculates these rates across all covered agricultural trade; it specifically notes that the effects on a product, pesticide, and exporting country basis can vary significantly.

The main issue in coffee may not be the ban, but the compliance cost

Theoretically, alternatives to pesticide use in coffee cultivation may exist; however, switching from one active substance to another is not free.

The JRC study additionally tests this through the active substance cyproconazole. According to the analysis, while alternatives approved by the EU are available, the substitution in some cases could increase production costs by 20% to 40%. This figure is not a cost estimate for all coffee; it is the result of the analysis of a specific active substance in the study.

The significance of this finding is substantial for the coffee supply chain.

Changing the pesticide used by a farmer may not just mean purchasing a different product. Reorganizing the agricultural application program, training, protective equipment, different application frequencies, alternative pest management methods, and sometimes the risk of reduced efficiency may arise.

While this cost may initially fall on the producer, it can be passed down the supply chain.

A green coffee exporter may require more analysis. An importer may need more detailed residue checks on a batch basis. A roaster may have to track more closely which standards the product they receive from which farm or cooperative was produced under.

Traceability is no longer just a sustainability issue

Traceability in coffee has long been discussed through origin, farm, producer, variety, or sustainability stories. The tightening of pesticide regulations also brings this concept into the realm of purchasing and regulatory compliance.

The European Commission's pesticide database allows tracking the approval status of active substances in the EU and the current MRLs on a product basis. However, the Commission specifically states that this database is for informational purposes; legally binding up-to-date information is published in the EU Official Journal.

For coffee importers and roasters, this may mean that the technical requirements in supplier contracts gain more importance.

Whether a product is organic or what certification it holds may no longer be sufficient control. Which active substances were used, which laboratory conducted the residue analysis, which batch the sample represents, and the current limits valid in the importing country may become more critical.

Transition may be more difficult for small producers

One of the most significant social dimensions of a tightened system is the compliance capacity of small farmers.

The JRC study itself does not cover social and environmental outcomes; it only conducts economic modeling and explicitly states that this is not a complete impact assessment. It also notes that data gaps regarding usage and substitution costs at the active substance, product, and country level are a significant limitation.

This limitation is particularly important for coffee.

While large exporters or cooperatives can afford the costs of laboratory analysis, record-keeping, and agricultural consultancy, it may be more challenging for small producers to make the same transition. If no technical support or reasonable transition period is provided when new rules are established, there is a risk that some producers may find it difficult to access high-value markets.

Therefore, pesticide regulation should not only be viewed as a discussion of "cleaner coffee." It is also a matter of producer access, purchasing policy, and supply chain resilience.

Why should coffee businesses in Turkey pay attention?

Turkey is not an EU member; therefore, any potential new regulation will not automatically apply to all coffees consumed or brewed in Turkey.

Nevertheless, developments are not insignificant for green coffee importers and roasters in Turkey.

The same producing countries and exporters sell products to both the European Union and Turkey. When a large market like the EU changes production standards, exporters' sourcing programs, product segregation, and pricing may also change. This effect may gradually reflect on buyers outside the EU.

For Turkey-based roasters that also sell products to Europe, the issue is more direct. Supply and quality assurance systems need to be compliant with the residue rules in the target market.

What should businesses check already?

At this stage, there is no confirmed new regulation that requires panic for businesses purchasing coffee. The European Commission states that it will propose legal changes if deemed appropriate after the general impact assessment. Therefore, the process is still in the policy development phase.

In contrast, it may be meaningful for purchasing teams to make active substance usage records, current MRL conditions, residue analyses, and exporters' alternative pest management capacities visible on a supplier basis already.

Because changing the supply chain after the regulation comes into effect may be much more expensive than starting preparations in advance.

In the coffee sector, regulatory compliance has long been seen primarily as the responsibility of the importer or quality department. If the new EU approach materializes, this distinction will become increasingly difficult.

In our view, the most important outcome will be that purchasing teams and sustainability and quality teams will have to work from the same data.

Buying cheap green coffee may not really be cheap when tests, traceability, and production transformation required for the product to enter the target market are not taken into account. Conversely, businesses that know the agricultural inputs used by their suppliers, collect data on a batch basis, and establish long-term relationships with producers may adapt to changing standards more quickly.

The EU's study is not yet a finalized regulation. However, the signal it sends is clear: in coffee trade, the capacity to prove how it was produced is becoming part of the commercial value, alongside price and quality.

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