EUDR Compliance Delayed — Turning Challenges into Opportunities Through Supply Chain Transparency

JAKARTA, Indonesia - April 3, 2025 - PRLog -- Agriculture remains a key driver of deforestation, with 10% of global forest cover lost in the past 30 years (European Commission, 2023), prompting regulatory measures like the EU Deforestation Regulation (EUDR). The regulation requires companies to ensure deforestation-free sourcing, verify supplier compliance, and implement traceability systems. Initially set for enforcement on 30 December 2024, the deadline has been postponed by 12 months due to supply chain complexities. Medium and large companies must now comply by 30 December 2025, while small and micro enterprises have until 30 June 2026. Additionally, by mid-2025, the EU Commission will classify countries based on deforestation risk.

Luca Fischer, Senior Head of Markets Indonesia at Koltiva, sees both challenges and opportunities in the delay. "Many companies had already invested millions in preparing their supply chains, seeing compliance as a competitive advantage. A delay in policy creates uncertainty, which is never good. However, the European Commission made it clear they are only delaying the regulation by one year, not watering it down. The extra time allows businesses to reduce their risk of non-compliance and ensure a smoother transition."

Koltiva, a technology-driven company specializing in traceability, helps businesses comply with EUDR through solutions like KoltiTrace. This platform enables real-time supply chain monitoring, risk assessments, and enhanced transparency. "This technology not only helps businesses comply with regulations but also adds value by increasing trust between suppliers, producers, and consumers," Fischer states.

The challenges of compliance vary between supply chain players. "Upstream players need to directly map their supply chains, while downstream players must refine due diligence processes. Many rushed to meet requirements last year, but now they have time to optimize processes, automate data collection, and strengthen compliance systems."

Beyond digital solutions, on-site verification is crucial. Koltiva's agronomists work directly with farmers and suppliers to ensure sustainability standards are truly implemented. Fischer stresses, "We believe sustainability must be holistic, not just an administrative requirement. That's why we combine technology with on-the-ground interventions to ensure genuine compliance."

Compliance with EUDR is not just about avoiding sanctions but also about maintaining market access and enhancing corporate reputation. As consumer awareness of sustainability grows, companies that proactively adopt standards will have a competitive edge. "Going forward, transparency and traceability will be key factors in determining business sustainability in the agricultural and forestry industries," Fischer says.

While EUDR compliance may seem overwhelming, Fischer remains optimistic. "This challenge can be turned into an opportunity to build more efficient, transparent, and sustainable supply chains," he concludes.

For businesses preparing for EUDR, solutions like those from Koltiva are essential in managing risks while ensuring long-term sustainability. Watch Luca Fischer's discussion in BeyondTraceability Talks at https://www.koltiva.com/beyond-traceability-talks-vol2