São Paulo – Qahwa World
A new European Commission proposal to relax the implementation of the EU Deforestation Regulation (EUDR) has triggered frustration among Brazilian coffee, soybean, and beef exporters, who were among the first to invest heavily in sustainable supply-chain compliance to secure early access to European markets.
According to a Rabobank report seen by Reuters, the proposed changes — which include postponing enforcement deadlines and easing penalties — could undermine the financial incentives that originally drove agribusinesses to adopt deforestation-free practices ahead of schedule.
The current law requires exporters of coffee, cocoa, palm oil, soy, wood, and beef to the European Union to provide due-diligence statements proving that their products are not linked to deforestation.
Under the new proposal, large companies would begin compliance checks from June 30, 2026, while smaller firms with fewer than 50 employees would have until December 30, 2026 to submit their declarations.
Rabobank analyst Marcela Marini emphasized that the delayed enforcement could erode the competitive advantage of those who acted early: “Companies that invested ahead of time were aiming for preferential access to the European market. The absence of fines and delayed enforcement weakens the incentive for sustainability premiums.”
The report also warned that the revision may disrupt global coffee supply chains, especially as the industry intensifies efforts toward traceability and environmental transparency.
The European Parliament is expected to review the proposal in the coming weeks. If approved, the regulation will still take effect in 2025, but with softer requirements and extended timelines — a move that some experts fear could dilute Europe’s commitment to fighting deforestation and impact the global push for sustainable coffee production.
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