Farmers and meat traders have joined industry trade associations in urging the European Union to postpone the implementation of its proposed deforestation law, known as the EU Deforestation Regulation (EUDR). The farming organization Copa-Cogeca, alongside the European Livestock and Meat Trading Union (UECBV), co-signed a letter that includes input from various sectors, such as media, packaging, and timber.
These organizations argue that implementing the EUDR before year-end is “simply unfeasible.” Initially announced in late 2021, the legislation aims to mitigate greenhouse gas emissions. Starting December 30, companies selling cocoa, coffee, palm oil, and other products in the EU will need to verify that their supply chains do not contribute to forest destruction.
Despite facing opposition from the US government and some Southeast Asian nations, as well as paper industry groups, the EU has largely resisted calls for policy delays. Recently, 28 organizations, including Copa-Cogeca—which represents 22 million farmers in the EU—have collectively stated that the law’s implementation warrants a delay.
In a statement released on September 25, they emphasized, “With less than 100 days left and no clear implementation tools, European primary producers and various industries urge a delay of the entry into application of the EUDR.”
These representatives express full support for eliminating deforestation and forest degradation, acknowledging the critical role global forests play in combating climate change and preserving biodiversity. However, they highlight the significant legal and market uncertainties that remain just days before the regulation is supposed to take effect.
Moreover, the letter emphasizes the necessity for clarity around the EUDR’s requirements to ensure all supply chain participants can adequately adjust their practices. “It is clear that the time for proper preparation is long overdue, and our industries are requested to implement obligations in a shorter timeframe than was ever demanded of any other industrial sector facing comparable EU legislation,” the statement reads.
The signatories stress that failing to delay the EUDR could severely disrupt market dynamics, potentially leading to the downfall of small businesses and job losses in rural areas. They note that many companies are already facing uncertainty when negotiating contracts for the upcoming year, leading to expectations of market turbulence, which could further harm European primary producers and related industries in the food and beverage sector.
In June, the US government also requested a delay, expressing concerns about the implications the regulation may have on US producers engaged in sustainable practices. In contrast, some major players in the chocolate industry, including Nestlé, Mars, and Ferrero, expressed support for the ban on imported goods associated with deforestation in July.
As the discussion around this contentious regulation continues, questions remain unanswered regarding its feasibility and impact.
In the dynamic landscape of the food and drink business, an ongoing review of regulations and industry trends is critical to sustain operations and consumer trust. Stakeholders in the food and beverage industry must remain vigilant about changes that could impact operational capabilities and market conditions.
