Postponement of the EUDR and its impacts

Adiamento da EUDR e seus impactos
Image: Oils & Fats International

The January issue of the magazine Oils & Fats International (OFI) highlighted important discussions on the global oils and fats sector, with a focus on the new European Union Deforestation Regulation (EUDR). Among the main topics covered was the impact of postponing the implementation of the EUDR for large companies until December 2025. The article entitled “EU delays deforestation-free law deadlines” had the participation of Aboissa Commodity Brokers, represented by Zainab Alhamwi, specialist in corn oil, and Thiago Prianti, specialist in Palm oil.

The article explores the impacts of the EUDR on producer markets, including Brazil, which is the world’s largest soybean exporter. While the postponement offers more time to adapt to European requirements, it also presents challenges, such as economic uncertainty and the need for investments in traceability and sustainability.

The challenges for Brazil

Brazil, as one of the largest exporters of soybeans and palm oil, faces significant obstacles in meeting the stringent requirements of the EUDR. The main obstacles include:

  • High traceability costs: Compliance with the EUDR will require advanced technology to map the origin of products throughout the supply chain;
  • Complexity of local production chains: Small and medium-sized Brazilian producers will need support to implement effective tracking systems;
  • EU risk classification: The European Union will assess Brazil in 2025 and may categorize it as 'high risk'. If this happens, there could be a significant impact on the competitiveness of Brazilian products in the European market.

Opportunities and perspectives

Although the EUDR represents challenges for producing countries like Brazil, it also brings opportunities to improve processes and strengthen sustainable practices in the production chain. Adapting to the new regulatory requirements will be essential to ensure the competitiveness of Brazilian products in the European market and in other global markets.

For more information on this and other relevant industry analyses, check out the issue 41 from the OFI.

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