EUDR disaster awaits as industry ‘underprepared’

A letter addressed to European Commission heads and seen by FoodNavigator warns of the dangers awaiting food and drink, as well as other industries, if the regulation is implemented this year.

“Many competent national authorities and the majority of companies involved are not yet sufficiently prepared for this transition,” said the letter sent by global consultancy Competere.

“There is a lack of information and clear tools by the European Commission, necessary resources, and time to ensure full compliance with the regulation,” it warned.

Of the seven commodities that fall under the EUDR, the majority were far from compliant, particularly for smallholders​, FoodNavigator previously revealed.

German Chancellor Olaf Scholz requested the regulation’s suspension earlier this month, alongside other European Parliament and agricultural ministers who warned of its complexity and likely negative impact on global trade.

The EC has been criticised for not assessing and addressing the diverse supply chains affected by the EUDR, which had specific needs and would be unable to adapt to the “one-size-fits-all” approach of the regulation.

EUDR will see price increases and economic slump

Countries had been alienated by the EC’s approach and there was a critical need to delay implementation considering the market's confusion along with the increased costs expected, the letter urged.

“Price increase resulting from the EUDR could burden not only European consumers, already strained by inflation and geopolitical instability, but also smallholders, further exacerbating their vulnerability,” the letter continued.

“We fear that, by 30 December 2024, a large number of operators involved in the supply chain will not be ready or lack sufficient elements to asses their compliance.

“The lack of clear and precise information from the Commission and the confusion it has created poses a risk of short-circuiting the system, from imports to processing, with severe consequences for the European economy and consumers.”

Instead, the consultancy proposed an additional, minimum, two-year transition period to gradually implement the EUDR, allowing businesses opportunity and time to adapt.

A committee involving commodity-based working groups, national authorities, producing countries, trade associations and other relevant stakeholders was also called for.

Sanctions should also be temporarily suspended during the proposed two-year transition period, while businesses would work towards operating in line with the EUDR.

EUDR must go ahead to save CO2

“Our request aims for constructive and pragmatic collaboration with the European Commission to ensure an effective, fair and resilient implementation of EUDR,” the letter continued.

“We are aware of the complexity of this request, but we firmly believe it represents the most effective path to enact necessary changes at this critical time.”

Campaigners at Global Witness, however, warned delays to the EUDR’s implementation would result in significant levels of CO2 – equivalent to 376m long-haul flights – being emitted and expose hundreds of thousands of forests to destruction.  

“Any delays in implementing the EU’s anti-deforestation regulation jeopardises global effots to combat climate change and protect biodiversity,” said Global Witness senior EU campaigner Giulia Bondi.

“Postponing the EUDR’s implementation would capitulate to industry pressure, favouring short-term profits over the urgent need for a carbon-neutral future. The science is clear – we cannot afford a delay.”

The EC directed FoodNavigator to a previously made statement in response to a comment request.

“The legislation has been set by the co-legislators and the commissioner is doing everything it can to ensure that things are in place on time,” said EC spokesperson Tim McPhie at a previous mid-day press briefing.