While implementing the European Union Deforestation-Free Products Regulation (EUDR) has been delayed until late 2025, agri-commodities sector organizations cannot wait. Compliance with EUDR is not a last-minute checkbox exercise—it demands a proactive effort to engage stakeholders, establish traceability systems, and align operations with regulatory requirements. From geolocation data collection to legality verification, meeting EUDR’s standards requires meticulous planning and collaboration with producers, suppliers, and technology partners. Starting now will ensure compliance and position organizations as leaders in sustainable and deforestation-free supply chains.
Sharing Insights on EUDR for the Industry
As sustainability and compliance become increasingly critical in global supply chains, EUDR emerges as a transformative framework. At Farmforce, we’ve developed a guidance document to track the regulation’s developments, highlight important considerations around key concepts, and align our solutions with customer needs. We’re excited to share these insights, offering a closer look at how EUDR shapes agri-commodity operations.
Understanding the Basics of EUDR
It’s essential to understand what EUDR requires from stakeholders. The regulation mandates that relevant commodities be deforestation-free, adhere to local legislation, and be supported by Due Diligence (DD) statements. These core pillars serve as the foundation of compliance.
To ensure that all players understand the implications, the EU makes a series of resources available, from the regulatory text to detailed FAQs and guidance documents. These tools aim to break down the requirements and help operators adapt to this new compliance landscape.
Clarifying Definitions: EUDR in Detail
Navigating EUDR can feel overwhelming, given its technical definitions and the challenges of interpreting and applying them to diverse local conditions. Terms like “deforestation-free” and “forest” are central to compliance, but their applicability in practice can be challenging. The guidance we’ve compiled offers practical insights, breaking down these terms and what considerations relevant stakeholders need to consider as they prepare to comply with the regulation.
For instance, traceability is a cornerstone of compliance, requiring operators to map supply chain nodes down to individual plots of land. This level of granularity not only helps meet EUDR standards but positions companies as leaders in transparent and responsible sourcing.
Relevant Commodities / Products
Art 2(1) / Art 2(2)
Definition:
EUDR Regulation, Annex 1, pg 243: lists raw materials and goods made with relevant commodities (food products).
The EU has committed to periodically reviewing EUDR. The first review is scheduled within two years of the regulation’s entry into force (by 2025), but this may be delayed since implementation has been delayed by one year. Further revisions to EUDR may include additional commodities and derived products, such as maize, poultry, or sugar, based on their role in deforestation and scientific evidence.
Definition:
- Commodities: Cattle, Cocoa, Coffee, Palm Oil, Rubber, Soy, and Timber
- Products: Contain, have been fed with, or made using relevant commodities
EUDR Regulation, Annex 1, pg 243: lists raw materials and goods made with relevant commodities (food products).
The EU has committed to periodically reviewing EUDR. The first review is scheduled within two years of the regulation’s entry into force (by 2025), but this may be delayed since implementation has been delayed by one year. Further revisions to EUDR may include additional commodities and derived products, such as maize, poultry, or sugar, based on their role in deforestation and scientific evidence.
Deforestation / Forest
Art 2(3) / Art 2(4)
Definition:
Definition over designation: According to EUDR Guidance doc Oct 2024, pg 33 – In assessing whether a certain plot of land constitutes forest, the actual forest properties should prevail over the designation in land registers and cadastral maps. Land registers and cadastral maps can complement the satellite data to demonstrate agricultural use in the past.
When using the FAO definition of forest and the EUDR forests conversion to other land uses, it is important to keep in mind the following:
Definition:
- Deforestation: The conversion of forests to agricultural use, whether human-induced or natural. This includes clearing forests for farming, plantations, or livestock rearing. Natural events like wildfires, volcanic eruptions, storms, or floods can cause significant tree loss. If such areas are subsequently converted to agriculture, they are still classified as deforested under EUDR.
- Forest: As defined by the FAO, land covering more than 0.5 hectares with trees over 5 meters tall and a canopy cover exceeding 10%, or land capable of reaching these thresholds naturally. This excludes areas primarily used for agriculture or urban development.
Definition over designation: According to EUDR Guidance doc Oct 2024, pg 33 – In assessing whether a certain plot of land constitutes forest, the actual forest properties should prevail over the designation in land registers and cadastral maps. Land registers and cadastral maps can complement the satellite data to demonstrate agricultural use in the past.
When using the FAO definition of forest and the EUDR forests conversion to other land uses, it is important to keep in mind the following:
- It focuses on primary forests. EUDR focuses on halting deforestation in primary and natural forests. It does not address forest degradation comprehensively, leaving secondary or degraded forests mostly out of scope.
- It does not include other ecosystems, such as savannahs (e.g., the Cerrado in Brazil), grasslands (e.g., the Pampas in South America and the African Savannas), and wetlands (e.g., peatlands in Indonesia).
- May not align with local realities: While the EUDR’s use of the FAO forest definition is understandable given the regulation’s global applicability, this one-size-fits-all approach may not fully account for local conditions. This can lead to discrepancies in what qualifies as a “forest.” For example, an area considered a forest under Brazil’s Forest Code might not meet the FAO’s criteria. Operators may have to comply with EUDR and local regulations in these cases.
- Verification: In certain cases, relying on satellite data alone may work to verify the existence of forests. However, if the regulation expands later, identifying subtler ecosystem changes in areas with mixed vegetation (e.g., savannahs) might present greater challenges.
Agricultural Use / Plantation
Art 2(5) / Art 2(6)
Definition:
Considerations:
Agroforestry systems: According to EUDR Guidance doc Oct 2024, pg 32-33 – Since the definition of ‘forest’ in Article 2(4) of the EUDR excludes land that is predominantly under ‘agricultural use,’ it can be inferred that if a land is predominantly used under ‘agroforestry systems,’ this land must be considered as being under ‘agricultural use.’
Stakeholders are concerned that agroforestry systems—valued for their sustainability and biodiversity benefits—could inadvertently be classified as non-compliant under the EUDR if established on land converted from forest after the cutoff date. While the EU has not explicitly indicated that additional guidance is coming on this issue, we will continue to monitor this space.
Definition:
- Agricultural use: land use for agriculture, including for agricultural plantations set aside in agricultural areas and for rearing livestock.
- Agricultural plantation: land with tree stands in agricultural production systems, such as fruit tree plantations, oil palm plantations, olive orchards, and agroforestry systems where crops are grown under tree cover. The land where trees stand is part of an agricultural production system, such as fruit tree plantations, oil palm plantations, and agroforestry systems where crops are grown under tree cover (this includes rubber plantations). Agricultural plantations are excluded from the definition of ‘forest.’
Considerations:
Agroforestry systems: According to EUDR Guidance doc Oct 2024, pg 32-33 – Since the definition of ‘forest’ in Article 2(4) of the EUDR excludes land that is predominantly under ‘agricultural use,’ it can be inferred that if a land is predominantly used under ‘agroforestry systems,’ this land must be considered as being under ‘agricultural use.’
Stakeholders are concerned that agroforestry systems—valued for their sustainability and biodiversity benefits—could inadvertently be classified as non-compliant under the EUDR if established on land converted from forest after the cutoff date. While the EU has not explicitly indicated that additional guidance is coming on this issue, we will continue to monitor this space.
Forest Degradation
Art 2(7)
Definition:
Forest Degradation refers to changes in forest cover, such as:
The EUDR mainly focuses on deforestation, such as large-scale tree removal, and may not fully address other types of degradation, such as habitat fragmentation, soil erosion, or biodiversity loss.
Definition:
Forest Degradation refers to changes in forest cover, such as:
- Converting primary or naturally regenerating forests into plantations or other wooded land
- Turning primary forests into planted forests
The EUDR mainly focuses on deforestation, such as large-scale tree removal, and may not fully address other types of degradation, such as habitat fragmentation, soil erosion, or biodiversity loss.
Types of Forests
Art 2(8) / Art 2(9) / Art 2(10)
Definition:
The EUDR doesn’t specifically address wild-harvested commodities like coffee or cocoa, though additional guidance may be provided.
For wild-harvested commodities, two main points are important:
Challenges in forest classification include:
Definition:
- Primary Forest is a naturally regenerated forest of native tree species with no clear signs of human activity and minimal disturbance to its ecological processes. Due to their biodiversity and the complexity of their ecosystems, primary forests are considered unique and irreplaceable.
- Naturally Regenerating Forest is mainly made up of trees that grow naturally. This includes forests where it’s unclear whether the trees were planted or grew naturally, forests with a mix of naturally regenerated and planted trees where the natural trees dominate over time, and coppice from trees that grew naturally and naturally regenerated trees of non-native species.
- Planted Forest are mainly composed of planted or seeded trees, which are expected to account for more than 50% of the mature tree stock. They also include coppice from trees that were originally planted or seeded.
The EUDR doesn’t specifically address wild-harvested commodities like coffee or cocoa, though additional guidance may be provided.
For wild-harvested commodities, two main points are important:
- No forest conversion, so likely compliant: If the forest is not altered (e.g., no tree cutting or land clearing).
- Traceability is required: Companies must prove sustainable sourcing through data such as geo-location, supply chain mapping, and relevant certifications.
Challenges in forest classification include:
- Primary Forest: Identified using satellite data, distinguishing it from regenerating forests requires high-resolution data and ground verification.
- Naturally Regenerating Forest: These areas often overlap with degraded or recovering forests, requiring additional data (e.g., historical land-use data) to confirm compliance.
- Planted Forest: Easier to identify, but mixed-use areas near natural forests create traceability risks.
Deforestation-free
Art 2(13)
Definition:
Products made from commodities grown on land not deforested after December 31, 2020.
Considerations:
Documenting no deforestation after the cutoff date requires reliable historical land-use data, which many regions lack. To address this, some countries are:
Definition:
Products made from commodities grown on land not deforested after December 31, 2020.
Considerations:
Documenting no deforestation after the cutoff date requires reliable historical land-use data, which many regions lack. To address this, some countries are:
- Using publicly available data from platforms like Sentinel-2, Landsat, and Google Earth Engine, combined with national land-use records, to establish baselines.
- Developing National Forest Monitoring Systems (NFMS) to track forest cover and land-use changes, often supported by initiatives such as the Forest Carbon Partnership Facility (FCPF) and UN-REDD programs.
- Collaborating internationally and through public-private partnerships, with initiatives such as those by Global Forest Watch (GFW) and FAO to help improve forest monitoring. Governments are also working with agribusinesses and tech providers to create reliable tracking tools, such as National Traceability Systems.
Operator / Trader
Art 2(15) / Art 2(17)
Definition:
Considerations:
Definition:
- Upstream operator: Entities that first place regulated commodities or products on the EU market or export them.
- Downstream operators: Entities along the supply chain that use, process, or sell products already placed on the EU market by upstream operators.
- Trader: Entities that buy and sell products or make relevant products available without processing them.
Considerations:
- Upstream Operators: They must perform full due diligence to ensure the products are free from deforestation or forest degradation, submit a due diligence statement confirming compliance, and report annually on their due diligence system.
- Downstream Operators: must verify that upstream operators have conducted proper due diligence and that the products comply with the regulation. They are not required to submit their due diligence statements but must ensure that their supply chain does not include non-compliant products.
- Traders: They must keep records to prove traceability and compliance and ensure the products come from compliant upstream operators. While they do not conduct due diligence themselves, they must verify that upstream operators have done so properly. If traders fail to verify due diligence and non-compliance is detected, regulatory authorities may investigate their role and impose penalties for inadequate verification.
Placing / Making Available on the Market
Art 2(16) / Art 2(18)
Definition:
Considerations:
Obligations under these two scenarios: According to EUDR FAQ doc Oct 2024, pg 22:
Definition:
- Placing on the market: refers to introducing a commodity or product to the EU market.
- Making available on the market refers to any subsequent supply of that product within the EU as part of a commercial activity, whether for payment or free of charge.
Considerations:
Obligations under these two scenarios: According to EUDR FAQ doc Oct 2024, pg 22:
- Placing on the Market (performed by operators) Operators must comply with the due diligence obligations, including geolocation data, risk assessments, and declarations of compliance with deforestation-free criteria.
- Making Available on the Market (performed by traders)Traders must ensure that the products they handle have already been placed on the market by operators who fulfilled EUDR requirements. For smaller traders, obligations are lighter, focusing on maintaining records to identify their suppliers and customers.
Authorised Representative
Art 2(22)
Definition:
An authorized representative is a natural or legal person established in the EU who has received a written mandate from an operator or trader to act on their behalf regarding specified tasks under the EUDR.
Considerations:
The EU specifies that the mandate must be provided in one of the official languages of the EU, but it does not explicitly provide guidance regarding content. Given other EU regulations, this mandate may include the following provisions:
Definition:
An authorized representative is a natural or legal person established in the EU who has received a written mandate from an operator or trader to act on their behalf regarding specified tasks under the EUDR.
Considerations:
The EU specifies that the mandate must be provided in one of the official languages of the EU, but it does not explicitly provide guidance regarding content. Given other EU regulations, this mandate may include the following provisions:
- Act on the operator’s behalf: Handle regulatory compliance processes, incl. providing required documentation to authorities.
- Facilitate access to documentation: Due diligence statements, traceability, and compliance evidence for commodities.
- Cooperate with authorities: Engage with EU authorities for inspections, audits, or enforcement actions.
Country of Origin / Production
Art 2(23) / Art 2(24)
Definition:
Definition:
- Country of Origin: Refers to the country where the product underwent its last substantial transformation, determining the nationality of the product.
- Country of Production: The country or territory where the relevant commodity or the raw materials used in producing a relevant product were grown, harvested, or produced.
- The EUDR emphasizes the country of production when assessing the risk of deforestation, as it is concerned with the environmental impact of producing raw materials.
- Due diligence and risk assessments must be conducted based on the country of production, ensuring no deforestation has occurred in these geographies.
- For example, cocoa beans are sourced from Ghana, the country of production, but processed into chocolate in Switzerland, the country of origin, as that is where the last substantial transformation took place.
Non-Compliant Products
Art 2(25)
Definition:
Non-compliant products are relevant products that are not deforestation-free or have been produced in violation of the relevant legislation of the country of production.
Considerations:
If there are gaps in traceability or missing documentation (either regarding deforestation or legality), the product may be deemed non-compliant even if deforestation did not occur.
Definition:
Non-compliant products are relevant products that are not deforestation-free or have been produced in violation of the relevant legislation of the country of production.
Considerations:
If there are gaps in traceability or missing documentation (either regarding deforestation or legality), the product may be deemed non-compliant even if deforestation did not occur.
Competent authorities
Art 2(32)
Definition:
Member States designate competent authorities to implement the EUDR. They are responsible for enforcing the regulation, inspecting operators and traders, and ensuring that products placed on the EU market meet the deforestation-free requirements.
Considerations:
Field audits in third countries: Under Article 18(2)(e), competent authorities may conduct field audits in third countries with cooperation from local authorities. If a product is found “non-compliant,” the EUDR does not require consultation with producing countries.
Variation in EU Member States’ approaches:
Definition:
Member States designate competent authorities to implement the EUDR. They are responsible for enforcing the regulation, inspecting operators and traders, and ensuring that products placed on the EU market meet the deforestation-free requirements.
Considerations:
Field audits in third countries: Under Article 18(2)(e), competent authorities may conduct field audits in third countries with cooperation from local authorities. If a product is found “non-compliant,” the EUDR does not require consultation with producing countries.
Variation in EU Member States’ approaches:
- Centralized (Ex. Germany): The Bundesanstalt für Landwirtschaft und Ernährung (BLE) manages enforcement and compliance across sectors.
- Decentralized (Ex. Austria and France): Multiple agencies focus on specific areas, such as environmental or customs enforcement.
Risk Assessment
Art 10
Definition:
The EUDR defines risk assessment as the process operators must carry out to evaluate whether there is no or only a negligible risk that the relevant products they intend to place on the market or export are non-compliant with the regulation. Only products assessed as having no more than negligible risk may be placed on the EU market. The finalization of the EU country risk benchmarking system (low, standard, and high) is expected by June 30, 2025.
Considerations:
The EUDR Regulation outlines risk assessment criteria that can be grouped into three categories for clarity:
Definition:
The EUDR defines risk assessment as the process operators must carry out to evaluate whether there is no or only a negligible risk that the relevant products they intend to place on the market or export are non-compliant with the regulation. Only products assessed as having no more than negligible risk may be placed on the EU market. The finalization of the EU country risk benchmarking system (low, standard, and high) is expected by June 30, 2025.
Considerations:
The EUDR Regulation outlines risk assessment criteria that can be grouped into three categories for clarity:
- Country-Specific Risks
- Risk assignment: Assessment of the relevant country or region per Article 29 (EU risk categorization – high, low, and standard)
- Presence of forests Consideration of forest coverage in the country or region
- Indigenous populations Identification of Indigenous peoples in the area
- Deforestation prevalence is the evaluation of deforestation or forest degradation risks in the country or region. While the regulation allows satellite data to verify deforestation-free status, it does not mandate specific tools or resolution thresholds (FAQ, Oct. 2024, pg. 39)
- Country-related concerns include risks such as corruption, document falsification, weak law enforcement, human rights violations, armed conflict, and sanctions.
- Stakeholder and Ownership Considerations
- Consultation with Indigenous peoples: Evidence of good-faith engagement with Indigenous communities.
- Claims on land ownership or use: Verified claims by Indigenous peoples over production areas.
- Supply Chain and Documentation Risks
- Information reliability: Assessment of the validity and reliability of data collected
- Supply chain complexity: Key questions to evaluate:
- Are there multiple processing steps or intermediaries in the supply chain?
- Does the product contain commodities from multiple plots or countries?
- Is the product highly processed, combining multiple relevant inputs?
- Risk of circumvention or mixing: Risks of blending compliant and non-compliant products.
- Compliance history: Track record of operators or traders in the supply chain and substantiated concerns.
Negligible Risk
Art 2(26)
Definition:
Negligible risk refers to the level of risk assigned to relevant commodities and products when, after a comprehensive assessment of product-specific and general information—along with the application of appropriate mitigation measures, if necessary—there is no indication that the commodities or products fail to comply with the regulation.
Considerations:
If the risk of deforestation or forest degradation is deemed negligible, the product may be placed on the EU market. This definition of negligible risk may mean, in practice:
Definition:
Negligible risk refers to the level of risk assigned to relevant commodities and products when, after a comprehensive assessment of product-specific and general information—along with the application of appropriate mitigation measures, if necessary—there is no indication that the commodities or products fail to comply with the regulation.
Considerations:
If the risk of deforestation or forest degradation is deemed negligible, the product may be placed on the EU market. This definition of negligible risk may mean, in practice:
- Operators may struggle to interpret the level of evidence or certainty that satisfies the “negligible risk” requirement without guidance. Still, it is generally better to be thorough.
- Operators must integrate multiple data points: geolocation, satellite imagery, risk factors in the country of origin, governance quality, and historical land-use changes. Assessing and compiling this information consistently across diverse sourcing areas may be required to satisfy concerns regarding negligible risk.
Plot of Land
Art 2(27)
Definition:
A ‘Plot of land’ refers to a single real estate property, as defined by the production country’s laws, characterized by uniform conditions that enable the assessment of the overall risk of deforestation and forest degradation linked to the relevant commodities produced there.
Considerations:
Thresholds for plots of land: According to the EUDR FAQ (October 2024, pg 10), the EUDR does not set minimum or maximum size thresholds for plots of land as long as the plot accurately represents the production area and shares homogeneous conditions necessary to assess the risk of deforestation or forest degradation. The number of polygons that can be imported into the Information System is not limited; however, the total file size of the Due Diligence Statement cannot exceed 25 MB.
Relevant plots: EUDR guidance Oct 2024 (pg 30) emphasizes identifying only the plots of land used to produce commodities intended for the EU market. It is unnecessary to include all plots owned by a producer if they are unrelated to EUDR-regulated products.
Plots must exhibit sufficiently uniform land use and environmental conditions to enable reliable deforestation risk assessment. In practice, irregular plots or those spanning diverse micro-zones may complicate assessments. Advanced tools such as satellite imagery and LiDAR technology can help improve the evaluation of land homogeneity and ensure compliance with EUDR requirements.
Definition:
A ‘Plot of land’ refers to a single real estate property, as defined by the production country’s laws, characterized by uniform conditions that enable the assessment of the overall risk of deforestation and forest degradation linked to the relevant commodities produced there.
Considerations:
Thresholds for plots of land: According to the EUDR FAQ (October 2024, pg 10), the EUDR does not set minimum or maximum size thresholds for plots of land as long as the plot accurately represents the production area and shares homogeneous conditions necessary to assess the risk of deforestation or forest degradation. The number of polygons that can be imported into the Information System is not limited; however, the total file size of the Due Diligence Statement cannot exceed 25 MB.
Relevant plots: EUDR guidance Oct 2024 (pg 30) emphasizes identifying only the plots of land used to produce commodities intended for the EU market. It is unnecessary to include all plots owned by a producer if they are unrelated to EUDR-regulated products.
Plots must exhibit sufficiently uniform land use and environmental conditions to enable reliable deforestation risk assessment. In practice, irregular plots or those spanning diverse micro-zones may complicate assessments. Advanced tools such as satellite imagery and LiDAR technology can help improve the evaluation of land homogeneity and ensure compliance with EUDR requirements.
Geolocation
Art 2(28)
Definition:
Geolocation refers to the precise geographical coordinates of a plot of land, represented by latitude and longitude points with at least six decimal places. For plots exceeding four hectares used to produce relevant commodities (excluding cattle), geolocation must include polygons with sufficient latitude and longitude points to accurately outline the perimeter of the land.
Considerations:
Verification of geolocation: Under the EUDR, operators and traders (excluding SMEs) must verify and prove the accuracy of geolocation data for compliance (EUDR FAQ Oct 2024, pg. 10).
National Laws on Geolocation Data: Operators and traders cannot claim exemption from submitting geolocation data because national laws prohibit sharing. They must collect and upload this information into the Information System to comply with EUDR (EUDR FAQ Oct 2024, pg. 18).
Challenges with Minimal Geolocation Data: Using a single geolocation point for plots under 4 hectares limits accurate deforestation monitoring, especially when boundaries are not fully mapped. Without complete mapping, it is difficult to detect land-use changes or deforestation at plot edges, particularly for irregular or high-risk plots near deforestation-prone areas. Geospatial monitoring systems, such as satellite imagery, require clear plot boundaries for accurate assessments.
Full boundary mapping of all plots is recommended, particularly in areas with a high deforestation risk, to enhance monitoring accuracy and ensure regulatory compliance.
Definition:
Geolocation refers to the precise geographical coordinates of a plot of land, represented by latitude and longitude points with at least six decimal places. For plots exceeding four hectares used to produce relevant commodities (excluding cattle), geolocation must include polygons with sufficient latitude and longitude points to accurately outline the perimeter of the land.
Considerations:
Verification of geolocation: Under the EUDR, operators and traders (excluding SMEs) must verify and prove the accuracy of geolocation data for compliance (EUDR FAQ Oct 2024, pg. 10).
National Laws on Geolocation Data: Operators and traders cannot claim exemption from submitting geolocation data because national laws prohibit sharing. They must collect and upload this information into the Information System to comply with EUDR (EUDR FAQ Oct 2024, pg. 18).
Challenges with Minimal Geolocation Data: Using a single geolocation point for plots under 4 hectares limits accurate deforestation monitoring, especially when boundaries are not fully mapped. Without complete mapping, it is difficult to detect land-use changes or deforestation at plot edges, particularly for irregular or high-risk plots near deforestation-prone areas. Geospatial monitoring systems, such as satellite imagery, require clear plot boundaries for accurate assessments.
Full boundary mapping of all plots is recommended, particularly in areas with a high deforestation risk, to enhance monitoring accuracy and ensure regulatory compliance.
Due Dilligence / Due Dillience Statement
Art 8 / Art 4(2)
Definition:
Due dilligence refers to the procedures that operators must follow before placing relevant products on the market or exporting them. Operators must conduct due diligence for each supplier. This process includes collecting the required information, data, and documents, performing risk assessments, and implementing risk mitigation measures when necessary.
Due dilligence statement is a formal declaration by operators confirming that they have conducted due diligence procedures as mandated by EUDR. It must be submitted to competent authorities before relevant products are placed on the market or exported. The statement includes information such as the geolocation of production plots and the results of risk assessments. It is a key compliance document for ensuring deforestation-free products.
Considerations:
Due Diligence on Legality: According to EU guidance (Oct 2024, pg. 15), operators must ensure compliance with applicable laws in the production country, including arrangements granting the right to use land for commodity production. If local law does not require land titles for agricultural activities, they are not mandatory under the EUDR. The scope of due diligence depends on national regulatory frameworks and includes verifying compliance with:
Definition:
Due dilligence refers to the procedures that operators must follow before placing relevant products on the market or exporting them. Operators must conduct due diligence for each supplier. This process includes collecting the required information, data, and documents, performing risk assessments, and implementing risk mitigation measures when necessary.
Due dilligence statement is a formal declaration by operators confirming that they have conducted due diligence procedures as mandated by EUDR. It must be submitted to competent authorities before relevant products are placed on the market or exported. The statement includes information such as the geolocation of production plots and the results of risk assessments. It is a key compliance document for ensuring deforestation-free products.
Considerations:
Due Diligence on Legality: According to EU guidance (Oct 2024, pg. 15), operators must ensure compliance with applicable laws in the production country, including arrangements granting the right to use land for commodity production. If local law does not require land titles for agricultural activities, they are not mandatory under the EUDR. The scope of due diligence depends on national regulatory frameworks and includes verifying compliance with:
- Relevant legislation: National, regional, and international laws, including secondary legislation and treaties codified into domestic law.
- Supplier compliance: Company policies, CSR/sustainability reports, permits, agreements with Indigenous or local communities, certifications, impact assessments, and conflict reports.
Production Country Relevant Legislation
Art 8 / Art 4(2)
Definition:
Relevant legislation of the country of production means the laws applicable in the country of production concerning the legal status of the area of production in terms of:
Relevant Regulation: According to the EUDR guidance (pp. 14-15), relevant laws affect the legal status of the area where commodities are produced. This includes legislation preventing deforestation and forest degradation, which aligns with the EU’s goals to combat climate change and biodiversity loss. The guidance provides concrete examples of such legislation.
Areas without property registries or farmer ID systems: Per the EUDR FAQ (Oct 2024, pg. 11), if national laws allow farmers to sell their products despite the absence of property registries or farmer IDs, operators or non-SME traders meet the legality requirements when sourcing from these farmers. However, they must still ensure there is no risk of illegality in their supply chains.
Future Guidance: The EU Commission plans to provide additional details on legality requirements in updated guidance expected in Summer 2025 (FAQ, Oct 2024, pg. 26).
Definition:
Relevant legislation of the country of production means the laws applicable in the country of production concerning the legal status of the area of production in terms of:
- Land use rights
- Environmental protection
- Forest-related rules, including forest management and biodiversity conservation, where directly related to wood harvesting
- Third parties’ rights
- Labour rights
- Human rights protected under international law
- The principle of Free, Prior and Informed Consent (FPIC), including as set out in the UN Declaration on the Rights of Indigenous Peoples
- Tax, anti-corruption, trade and customs regulations
Relevant Regulation: According to the EUDR guidance (pp. 14-15), relevant laws affect the legal status of the area where commodities are produced. This includes legislation preventing deforestation and forest degradation, which aligns with the EU’s goals to combat climate change and biodiversity loss. The guidance provides concrete examples of such legislation.
Areas without property registries or farmer ID systems: Per the EUDR FAQ (Oct 2024, pg. 11), if national laws allow farmers to sell their products despite the absence of property registries or farmer IDs, operators or non-SME traders meet the legality requirements when sourcing from these farmers. However, they must still ensure there is no risk of illegality in their supply chains.
Future Guidance: The EU Commission plans to provide additional details on legality requirements in updated guidance expected in Summer 2025 (FAQ, Oct 2024, pg. 26).
Addressing Due Diligence: More Than a Checklist
EUDR emphasizes the importance of due diligence, urging stakeholders to go beyond surface-level checks. While certification schemes can support compliance efforts, they aren’t legally mandated. Instead, operators are encouraged to evaluate the credibility and traceability of these schemes to ensure alignment with EUDR.
Due diligence becomes even more critical for composite products. The regulation demands that all components meet compliance standards, reinforcing the importance of thorough assessments at every stage.
This includes EU guidance on using certification and 3rd party verification schemes and due diligence needed for composite products.
Use of Certification and Third-Party Verification
The EUDR Guidance (October 2024) states that certification schemes can support compliance efforts but are not legally mandated. Instead, operators are encouraged to evaluate the credibility and traceability of these schemes to ensure alignment with EUDR. According to the EU guidance document, self-declaration schemes that do not rely on third-party attestation procedures are, by definition, less robust because they lack independence and impartiality. Operators’ evaluation of Certification and Third-Party schemes should involve three main areas.
Scope
- Requirements: Alignment with EUDR provisions, incl. legality, deforestation-free criteria, and the cut-off date.
- Traceability: Products should be traced to their geolocation (e.g., a plot of land). The use of mass balance systems is not in compliance with EUDR.
- Evidence: Provide adequate, conclusive, and verifiable information to demonstrate compliance with EUDR.
Implementation
- Transparency: Publicly accessible databases of certified entities, their scope, audit reports, and any suspensions/terminations.
- Monitoring: Conduct transparent, periodic, random, and independent audits to ensure compliance with the scheme’s standards, rules, and procedures.
- Verification: Ensure effective volume verification controls across supply chains and control the origin of certified materials, including, for example, the use of anatomical, chemical, or DNA analysis to verify product information.
- Concerns: Operators should assess substantiated reports on scheme shortcomings, fraud, corruption in sourcing countries, and concerns related to specific producers or traders using the schemes.
Governance and Credibility
- Transparency: Disclose conflicts of interest, findings on fraud and corruption, and compliance with international standards (e.g., ISO guides).
- Accountability: Establish clear consequences for infractions, including corrective actions, certification suspension, and timely revocation or restoration of authorization—stakeholder inclusion: Smallholder participation, engagement with unions, and civil society.
- Scheme independence: Assurances from the scheme, its auditors, or third-party auditors should not be solely relied upon or considered conclusive. When reasonably available, input from other stakeholders—such as participants, labor unions, smallholder associations, NGOs, and independent auditors—should also be considered.
We include here information on how some of the most common certification schemes are preparing to meet EUDR requirements (at the time of publishing this article).
Rainforest Alliance
Fairtrade
- Fairtrade claims its standards are aligned with the new EUDR regulation.
- Integrated geolocation data collection into its standards (here). This is validated and analyzed using satellite monitoring to detect risks of deforestation. Alerts are generated when potential issues are identified, enabling corrective actions before they become violations.
- Companies have access to the Fairtrade Risk Map to support their risk assessments and FairInsights, a digital platform developed by Fairtrade International to provide data and insights for compliance.
4C
- 4C claims its standards are aligned with the new EUDR regulation.
- Launched a “EUDR solution” for coffee and cocoa consisting of:
- A robust traceability system, ensuring transparent sourcing and compliance with EUDR traceability demands.
- Collaboration with 4C’s partner Global Risk Assessment Services (GRAS) delivers in-depth risk assessments identifying deforestation risks within your supply chain.
- 4C facilitates the collection of crucial data points required for demonstrating deforestation-free practices and completing EUDR due diligence statements.
- The 4C Code of Conduct incorporates key legal requirements with additional legality check support options.
RSPO
- Conducted a gap analysis to identify gaps to meet EUDR requirements.
- Planning the development of an enhanced traceability system to upload and transfer geolocation and deforestation-related data.
- Plans for a voluntary EUDR add-on module to meet specific regulatory needs not covered by RSPO Principles and Criteria.
- Ongoing dialogue with the European Commission and member states to position RSPO as a reliable tool for risk assessment under the EUDR.
Leveraging Technology: The EUDR Information System
The information system is a significant innovation supporting EUDR compliance. This online platform streamlines the creation and submission of DD statements, enabling operators and traders to navigate regulatory requirements more efficiently.
Farmforce applauds the inclusion of features like a training server, which allows stakeholders to practice submissions without legal consequences. Such tools lower the barrier to compliance, fostering a smoother transition for affected industries.
This centralized registry enables operators, traders, and their representatives to electronically draft and submit DD statements to the relevant authorities, ensuring compliance with EUDR. The system’s official website provides comprehensive information about its features and updates.
As of 6 November 2024, the production environment of the EUDR Information System, TRACES, is live and open for operators to register. While registration is now possible, submitting Due Diligence Statements has not yet commenced.
A replica training server, the ACCEPTANCE Server, is also available in all EU languages for training and user familiarization. Accessible via this link, this server allows users to practice submitting DD statements in a non-binding environment. Detailed user guides and schedules for virtual training are available on the official website, which caters primarily to companies that are required to comply with EUDR—operators, traders, their authorized representatives, and relevant industry associations.
For those seeking system integration, the latest technical specifications for the API are also available on the platform for review and download. This ensures seamless connectivity for stakeholders looking to automate their compliance processes.
Moving Forward Together
We aim to empower industry stakeholders to navigate EUDR confidently by sharing our internal guidance. At Farmforce, proactive engagement and robust traceability systems are vital to achieving compliance and driving meaningful change across supply chains.
As EUDR continues to evolve, we’ll remain a trusted partner, offering insights and solutions that help you stay ahead of the curve. Our team of experts is here to guide you every step of the way, offering local insights and a cutting-edge technology tool that simplifies due diligence, traceability, and compliance.
Don’t leave your supply chain to chance—contact us today to ensure your organization is fully aligned with the EUDR requirements. Together, let’s create a deforestation-free future.
