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Why You Need To Prepare for EUDR Now
With a December 2025 deadline, EUDR is rapidly approaching and businesses need to start adapting now
Published July 14, 2025
Asharita D'Silva
Expert@Era of We
With the EU Deforestation Regulation (EUDR) now taking effect in December 2025, coffee and timber businesses cannot afford to wait. The supply chain complexity in these sectors and the others under EUDR means compliance will take time. Procurement teams, sustainability managers, and executives must begin mapping supply chains, collecting geolocation data, and setting up due diligence systems now. EUDR compliance will require unprecedented traceability, including geolocation data at the plot level, robust due diligence processes, and end-to-end supply chain visibility.
This isn’t just about avoiding penalties—early action protects market access, reduces long-term costs, and positions your brand as a sustainability leader. EUDR readiness starts today, and businesses should take advantage of this strategic opportunity. Early movers will secure their market position, reduce long-term costs, and lead environmental accountability in their industries. Waiting until 2025 to act risks operational chaos and missed opportunity. The time to future-proof your supply chain is now.
Why was EUDR Delayed to December 2025?
The implementation of the EU Deforestation Regulation (EUDR) was delayed to December 30, 2025, primarily to give businesses additional time to adapt to these complex requirements.
The regulation imposes strict due diligence obligations on companies placing products linked to deforestation (such as timber, soy, cocoa, palm oil, coffee, and rubber) on the EU market. The delay acknowledges the logistical and technological challenges companies face in mapping out supply chains, collecting geolocation data, and ensuring traceability back to the plot of land where the commodities were produced.
Furthermore, concerns from producing countries, trade associations, and industry stakeholders highlighted the risk of trade disruption and the need for further guidance from the European Commission. The extension offers breathing room for businesses to invest in traceability systems, training, and verification tools while allowing regulators to finalise the operational details, support tools (like the EU Information System), and country benchmarking.
Differences Between Traders and Operators in EUDR
One of the most important distinctions in the EUDR is between operators and traders. While both must contribute to the overarching goal of preventing deforestation, their responsibilities under the regulation differ significantly.
Operators
An operator is any natural or legal person who places relevant commodities or products on the EU market for the first time or exports them from the EU. This includes manufacturers, importers, and exporters.
Operators putting goods on the market for the first time are subject to the full due diligence requirements under EUDR. This includes:
- Collecting precise geolocation coordinates of where commodities are produced.
- Demonstrating that products are deforestation-free and produced in accordance with the laws of the country of origin.
- Conducting risk assessments and taking risk mitigation steps when necessary.
- Submitting a due diligence statement prior to placing products on the market or exporting them.
Operators bear the brunt of compliance responsibilities because they initiate the product’s entry into the EU market.
Traders
A trader, on the other hand, is anyone who buys or sells relevant products already placed on the EU market. These are often wholesalers, distributors, or retailers operating within the EU.
Traders have lighter obligations, particularly if they are not SMEs (small and medium-sized enterprises). They are primarily responsible for ensuring that the operator they buy from is compliant and that the necessary due diligence documentation (including the reference number of the due diligence statement) is available and accessible.
However, if the trader is not an SME, they must retain records of their supply chain and may also be subject to some due diligence requirements.
Understanding this distinction is crucial because it affects how a business should allocate compliance resources and design its internal controls.
Misconceptions Surrounding EUDR Implementation
- Compliance is easy and won’t take much time
EUDR compliance requires the collection of geolocation data, supply chain mapping, and continuous monitoring of supplier practices, especially in high-risk countries. These tasks demand time, coordination, and investment.
- Older/previous certifications can be used as proof of compliance
The regulation explicitly states that only a proper due diligence process, as defined by the regulation is valid proof of compliance.
- Buying from EU suppliers provides an exemption
Some believe that purchasing from within the EU removes the need for compliance. This is false. Even EU-based suppliers must comply if they are operators. Traders sourcing from within the EU must still ensure the products they receive are accompanied by valid reference numbers (RNs) and verification numbers (VNs). More importantly, the entire upstream supply chain must remain compliant, including non-EU producers.
- Only large businesses need to comply
While some exemptions exist for timber-related products, most companies, regardless of size, must comply with EUDR requirements, albeit with a slightly extended deadline.
What are the Penalties for Non-Compliance with EUDR?
- Financial Penalties
Authorities in EU member states are required to impose proportionate and dissuasive penalties.
- Supply Chain Disruption
Non-compliance can lead to delays or blocks at customs, preventing goods from entering the EU market. This can severely disrupt the flow of inventory and damage client relationships.
- Loss of Market Access
If products are found to be non-compliant, they may be withdrawn from the market. Persistent violations may result in exclusion from participating in public procurement or temporary bans on placing products on the market.
- Operational Disturbances
Investigations, audits, and legal challenges stemming from EUDR violations can divert resources away from core operations and lead to business inefficiencies.
- Reputational Loss
With growing consumer and investor scrutiny of environmental practices, EUDR violations can tarnish a company’s reputation, eroding brand trust and customer loyalty.
- Higher Compliance Costs
Fixing supply chain issues retroactively is typically more expensive than proactive compliance. Companies may need to invest in new technology, training, and supplier development to regain compliance.
How Can Businesses Prepare for EUDR?
Start Early
Compliance isn’t a one-time task—it’s an ongoing process. Begin early by identifying high-risk products, mapping out your supply chain, and developing internal compliance protocols.
Supply Chain Mapping
Know your entire supply chain, from origin to end-user. This includes identifying all producers and intermediaries, verifying that all production sites are compliant, and ensuring transparency and traceability across all tiers.
Collection and Storage of Geolocation Data (only for companies placing the product on the EU market)
Operators must collect the geolocation of all land plots where commodities are produced, including polygon mapping for plots larger than 4 hectares. Systems must be put in place to collect, validate, and store this information securely.
Traceability Systems
Digital solutions, such as cloud-based supply chain platforms, can streamline traceability and ensure data accuracy and availability during audits or inspections.
Risk Assessment and Mangement
Operators must assess and mitigate risk using criteria such as country of production (risk level), history of deforestation, complexity of supply chain, and reliability of data and certification schemes.
When risks are identified, companies must take mitigation actions like on-site audits or sourcing from alternative suppliers.
Strengthening Vendor Relations
Close collaboration with suppliers is essential. Businesses should clearly communicate EUDR expectations, provide training or support to producers, and establish contracts that include EUDR clauses.
Long-term partnerships will help ensure consistent compliance and information sharing.
Summary
EUDR represents a shift in how commodities are sourced, traded, and verified in the EU. While it imposes new burdens, it also presents a unique opportunity for companies to align with sustainability goals and demonstrate environmental leadership.
By understanding the roles of traders and operators, avoiding common misconceptions, and proactively preparing for compliance, businesses can not only avoid penalties but also gain a competitive edge in a market increasingly defined by responsible sourcing.
Sustainability Practices
About the author
Asharita D'Silva
Join me in discovering the wonderful world of coffee! As a writer, coffee is my fuel and newfound passion. I love writing about new coffees, sustainability, and coffee culture around the world. I'm always discovering new things about coffee and the industry, which I share with the great community here at Era Of We.
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