EUDR update: expected delay and what it means for your business

What is the EUDR?

The EUDR is an EU regulation designed to stop products linked to deforestation from entering the EU market.

It applies to products such as:

beef, leather, cocoa, coffee, palm oil, soy, rubber and wood products.

Companies will soon need to show:

• where their products come from (down to plot level),
• that no forest has been cleared since 2020,
• that suppliers operate legally.

The goal is simple: stop deforestation and make supply chains more transparent.

‍

What is the current status?

Here are the three main developments:

1. European Commission

• Wants to keep the deadline of 31 December 2025 for medium and large companies,
• with a six-month grace period (no enforcement until mid-2026),
• Small businesses would get extra time until December 2026.

2. European Council and European Parliament

Both want a clearer and longer delay:

• 30 December 2026 for large companies,
• 30 June 2027 for small businesses.

They also want less paperwork and simpler procedures.

3. Not final yet

The delay only becomes official once both institutions sign a shared text. This is expected in the coming weeks.

‍

Why is the regulation delayed?

The goal is clear, but implementation is complex. The EU is postponing the EUDR because the IT system is not ready, many companies (especially SMEs) have not had time to prepare, and Brussels wants to simplify the rules. At the same time, sectors warn about high costs and pressure on small farmers, while NGOs fear that a delay will weaken the regulation.

In short, more time is needed to make the EUDR workable for businesses, traders and authorities.

‍

Challenges for smaller businesses

Many entrepreneurs support the goal, but the day-to-day reality is tough. Suppliers often do not have their data in order, plot-level traceability is rare, and the rules keep shifting. For SMEs, this is even harder because time and capacity are limited, while the responsibility still sits with you.

Think of a small chocolate maker who buys cocoa from a wholesaler. The data is missing, the deadlines move, but he still has to show that his product is deforestation-free and legal.

‍

What many businesses do not realise

The EUDR does not only apply to importers. Even if you work with wholesalers, you will need to show which product you used and the corresponding reference number. It is not only about preventing deforestation, but also about proving that it’s legally produced. All data must be stored for five years and submitted digitally. The basis for this is the DDS, the due diligence statement from the first market participant that you must be able to pass on in the chain.

‍

What you can do now

1. Map your supply chain
‍Which products fall under the EUDR, and where do they come from?

2. Contact your suppliers
‍Ask for basic information and record agreements.

3. Improve your data quality
‍Better data now means less work later.

4. Work from one system
‍Avoid loose Excel files and email threads.

5. Embed EUDR in your sustainability strategy
‍It also supports CO2, ESG and risk management.

‍

What is next?

Politics will finalise the text soon, but the direction is clear. The EUDR is coming, with new deadlines and less administration. For business owners, one thing stays the same: you must be able to show where your products come from and that they are deforestation-free and legal.

Use the extra time to organise your supply chain insight. You will need it anyway.

‍

If you have questions or need support, feel free to contact one of our experts. We are happy to think along with you.