Retailers and industry discuss readiness for EU deforestation-free regulation

Retailers and industry discuss readiness for EU deforestation-free regulation
Published: August 29, 2024

Representatives from major retailers, processors and food and farming industry organisations across dairy and beef supply chains gathered to discuss industry readiness for EU Deforestation Regulation (EUDR).

Collaboration, clarity and communication needed ahead of 2025 deadline.

EUDR requirements

From 1 January 2025, EUDR, which was introduced to limit the impact of global deforestation, will require organisations placing relevant products, notably soya and palm, onto the EU market to prove that their goods do not originate from recently deforested areas or contribute to forest degradation.

Whilst the focus is on the major commodity traders, the regulation also applies to farmers and processors who are placing beef on the EU market. There is a requirement to provide evidence of soya and palm feed sources, with obligations for SMEs delayed until 30 June 2025.

Dairy Industry in scope

Dairy products are specifically excluded from the scope of the regulation, however, dairy producers could be affected where dairy cattle are slaughtered for beef and that beef is exported to the EU, hence the involvement of dairy organisations in the discussions.

UKFRC

Alongside EUDR, the UK Government is expected to introduce the UK Forest Risk Commodity Regulation (UKFRC) in 2025. UKFRC differs in scope from EUDR and it is understood that Defra are not planning to bring it exactly in line with EUDR, meaning that the industry will need to prepare for more than one set of legislative requirements.

The UK Agri-Tech Centre, which is focused on creating sustainable and resilient systems, convened the meeting along with Leprino Foods, Arla and Agricultural Industries Confederation (AIC) to discuss and agree actions needed to ensure that the industry is prepared for the introduction of EUDR.

UK Agri-Tech Centre opinion

Annie Williams on readiness for EU deforestation-free regulation

Dr Annie Williams, animal nutrition specialist and UK Agri-Tech Centre Business Development Manager, said:

“The 2025 deadline is looming, and the industry requires more clarity, collaboration and communication to meet it. There was in-depth discussion of how the EUDR will affect supply chains and market access. The group also examined clear communication plans, including end-to-end supply chain, transparency, commitment, traceability, data flow and legality.”

James McCulloch on readiness for EU deforestation-free regulation

James McCulloch, AIC Head of Feed, said:

“The suppliers of in-scope commodities and the feed industry have the difficult task of supplying product based on three related, but separate, specifications. These are the two regulatory requirements of UKFRC and EUDR and the requirements set by the UK Soya Manifesto Group.

AIC intends to develop separate standards designed to demonstrate that participants would be expected to meet the two regulatory requirements and will also work on a standard encompassing the scope of the Manifesto Group requirements. It is likely that some sort of transition plan is agreed with all parties whilst these separate standards co-exist. In addition, it is important to recognise that compliance with any regulatory and market requirements will carry a cost.”

Ben Williams, Leprino Foods Sustainability Manager, said:

“Whilst the dairy sector has no immediate legal obligation to report feed sources and standards under UKFRC (not yet legally ratified) or EUDR, we recognise the moral obligation and market requirements for transparency and the highly integrated nature of dairy and beef supply chains. This led to the event, well supported by major UK food businesses, retailers, feed millers and importers as well as allied industry.

Customers of UK agriculture reinforced – given their need to export UK products into the EU – the need to prioritise a common standard for all in-scope commodities entering the UK to align to EUDR in advance of the 1 January 2025 deadline, and develop that standard by December 2025 to cover the voluntary verified deforestation and conversion-free (vDCF) standard.

It is vital that the dairy and beef supply chains maintain market access both in the UK and EU, hence the need for rapid and collaborative action.

Any delay to that progress threatens market access both in the UK and more widely, which can be avoided. This is the clear message being delivered by the customers of UK agriculture, who additionally have stated they want to avoid any additional burden and importantly ensure no additional cost to UK farmers.”

The following table sets out the key differences in scope between UKFRC and EUDR:

Illegal deforestationLegal deforestationIllegal conversionLegal conversionDirect EmbeddedAssurance mechanismCut-off dateGeo-location dataEntry into force
EUDRXXXXXXX
2025
UKFRCXXXXXX
TBC
Table courtesy of AIC: https://www.agindustries.org.uk/resource/uk-forest-risk-commodity-regulation-ukfrc-and-eu-deforestation-regulation-eudr-frequently-asked-questions.html

If you have any questions on EU deforestation-free regulation or would like to discuss this topic further, contact the team at info@ukagritechcentre.com