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Businesses welcome EUDR delay, but compliance still challenging
Business associations emphasized that challenges, such as providing geolocation data, would not be fully resolved by the delay alone, unless the government decide to give more support.
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Workers load oil palm fresh fruit bunches to be transported from the collector site to palm oil factories in Pekanbaru, Riau, on April 27, 2022 (Reuters/Willy Kurniawan)
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usinesses have welcomed the one-year postponement of the European Union Deforestation-Free Products Regulation (EUDR) but warn that full compliance with the requirements remains challenging, especially for smallholder producers.
Previously, the Council of the EU had reached agreement with the European Parliament on Dec. 3. Under the new timeline, big firms must comply with the regulation by Dec. 30, 2025, while small and medium enterprises (SMEs) have been given until June 30, 2026.
The regulation, initially scheduled to take effect on Dec. 30 this year, would require exporters of cocoa, soy, timber, cattle, palm oil, rubber, coffee and their derivatives to ensure that their products are not produced on deforested land, including by providing proof of geolocation data.
The postponement came after multiple countries, including the United States and Indonesia, called on the EU to delay the ban on imports of products driving deforestation, as the regulation would harm those unable to comply.
Soetanto Abdoellah, chairman of Indonesian Cocoa Board (DKI), told The Jakarta Post on Tuesday, he expected the postponement would boost cocoa exports next year, allowing local producers to capitalize on the rising price of the commodity.
Starting the year at about US$4,400 per tonne, cocoa bean futures prices peaked at around $12,000 in April. As of Dec. 10, cocoa prices were around $10,000 per tonne.
The Indonesian Palm Oil Producers Association (GAPKI) said it expected there would be little change in crude palm oil (CPO) export projections next year despite the EUDR delay, as European countries continue to demand the product and no changes occurred in terms of substance.
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