Comments by Allison Kopf who is the CEO of TRACT, a sustainability measurement platform, whose foundation is traceability in supply chains. TRACT provides EUDR compliance capability.

Farming and agricultural business in the UK who export produce into the EU may be affected by the EUDR legislation – the compliance deadline for which is December 2024.  The regulations specify seven commodities within its framework, many of which are not produced in the UK.  If, however, a company exports beef or timber to the EU, the regulations will apply and it’s important to understand the implications and how to prepare.  Although the deadline is only months away, there are companies and technology that can help.

Climate change has been blamed for the floods that have plagued the UK’s rural areas over the last winter and spring and its effects are proving devastating to farmers.  So much so that, in the UK, the Energy and Climate Intelligence Unit (ECIU) projects a 17.5% reduction in overall production compared to 2023 for winter wheat, winter barley, spring barley, oats and oilseed rape.  And of course, extreme weather patterns are impacting people, animals and businesses all over the world.

In an effort to halt deforestation – which plays a major role in contributing to climate change – the European Union has introduced its Regulation on Deforestation-free products (the EUDR). In response, any company that imports certain commodities or products into the EU, needs to prepare for significant change in how they manage these imports.

With the upcoming compliance deadline of 30^th December 2024, EUDR requires all companies sourcing any one or more of seven specified commodities (and certain by-products) – beef, timber, soy, palm oil, cocoa, rubber and coffee - to prove their supply chains don’t contribute to forest degradation or destruction, or breach existing environmental or social laws. Imports or exports of products to the EU containing these commodities must be shown to be “deforestation-free” - meaning no forest was cleared or degraded after 2020 to grow or produce any part of the product.

There will be significant penalties for non-compliance. These can include fines up to 4% of company turnover, as well as the confiscation of products and the potential temporary exclusion from access to public funding.

Getting ready for such rigorous tracking of food sources is complex, and there are few systems already in place that companies can utilise to comply with the new rules.

Producers of all sizes will face challenges.  Companies exporting beef or timber to the EU will have to provide geolocation evidence to prove that the animals have not been kept on land that has been recently deforested.  They will also have to demonstrate that the feed they have used has not been made with certain ingredients – such as soy or palm oil - that comes from deforested land in other countries.    

Compliance can feel onerous, especially for companies operating at a smaller scale. Preparing for the EUDR December deadline can feel overwhelming, but there are companies who are here to help.  They have systems that support by tracking supply chains that gather information alongside providing risk assessment and mitigation guidance, all elements that are required by the new regulations.

If your company is struggling to understand its obligations under EUDR or is worried about meeting the deadline, now is the time to start finding a solution.