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The European Union Deforestation Regulation (EUDR), which now comes into effect on 30 December 2025, will change how global trade works for key commodities that have been linked to deforestation. These include cocoa, coffee, palm oil, soy, rubber, cattle, and timber, representing over $110 billion in trade annually. Once it takes effect, the regulation will require that these products, or any products made from them, can only be placed on the European Union (EU) market if they are confirmed to be deforestation-free (not linked to land cleared or degraded after 31 December 2020), legally produced in their country of origin, and supported by a due diligence statement.
“Players in the EU have a responsibility to support their supply chain partners because compliance cannot be achieved through top-down mandates alone. Concrete support actions through investment, collaboration, and shared responsibility are necessary.”
Although the regulation applies directly to EU-based companies, it will have wide-reaching effects on suppliers around the world. Businesses in countries like Nigeria must begin preparing now to avoid losing access to important markets.
This piece highlights why the EUDR matters for suppliers, cooperatives, exporters, and aggregators and gives some recommendations on how EU buyers can support their supply chain partners in meeting the requirements.
1. The regulation is rooted in environmental responsibility
The EUDR is designed to reduce greenhouse gas emissions, combat deforestation, and protect biodiversity. Agriculture is responsible for over 90 percent of global deforestation, and by requiring that these products be deforestation-free and legally produced, the EU aims to reduce its contribution to global forest loss. If your supply chain business has already set climate targets or aims to align with the Sustainable Development Goals, compliance with EUDR can support your environmental goals. It also signals to your stakeholders that your operations are aligned with global efforts to reduce emissions and protect the planet.
2. Non-compliance can result in market exclusion
The European Union is the world’s largest single market for cocoa, accounting for about 60 percent of global cocoa imports. Companies that cannot meet the EUDR requirements may be excluded from supply chains that lead to the EU market. So, even if you are not selling directly to a European buyer, you may be part of an extended chain that does. For continued access, you must begin to embed compliance into your operations.
3. Traceability is becoming a global expectation
There is a shift in global trade where traceability and risk-based sourcing are becoming the new normal, and this would transcend the EU. The earlier you begin to align with traceability requirements, the better prepared you will be for future changes in other markets, which is a smart investment in your long-term business resilience and global competitiveness.
4. Compliance can become a competitive advantage
Supply chain businesses that act early to meet EUDR requirements can position themselves as preferred suppliers, potentially leading to stronger relationships with buyers, access to premium markets, and eligibility for sustainability-linked financing. In many cases, compliant suppliers are already seeing interest from new buyers who are looking for risk-free sourcing options.
How EU companies can support their supply chain partners
Players in the EU have a responsibility to support their supply chain partners because compliance cannot be achieved through top-down mandates alone. Concrete support actions through investment, collaboration, and shared responsibility are necessary. Some specific recommendations are:
1. Support on-the-ground implementation
Smallholder farmers and local suppliers in countries like Nigeria face significant resource limitations. Mapping farms, obtaining legal documentation, and implementing data systems are costs they cannot afford to bear. Operators can provide financial support for GPS mapping and digital traceability tools through more structured supply chain players like the exporters.
2. Invest in capacity building
EU companies should train their supply chain partners on key compliance topics such as legality, traceability, and risk assessment. Most local actors are not familiar with the technical aspects of EUDR, and ongoing training can help improve understanding and adoption.
3. Be transparent about expectations
It is important that EU players define what is required, how performance will be measured, and what support will be available to their supply chain partners. Templates, guidance notes, supplier handbooks, supplier codes of conduct, etc. should be shared early and updated regularly, as these would go a long way to improve transparency and reduce confusion.
4. Offer incentives to encourage compliance
Incentives such as price premiums and long-term purchase agreements should be embraced. Several supply chain businesses would be more willing to invest in traceability tools if it meant better pricing or more stable buyer relationships.
Conclusion
The EUDR is more than a regulation affecting European companies. It is a sign that sustainability, traceability, and legality are becoming central pillars of global trade. Supply chain partners must prepare to meet these expectations or risk losing access to key markets. However, EU companies must recognise that compliance is not automatic, as it requires practical support, financial investment, and shared commitment.
Modupe Ojo is a Sustainability Manager at Sunbeth Global Concepts Limited, where she oversees the implementation of the company’s environmental and social strategy across its supply chain operations. She leads programs focused on environmental protection, farmer livelihoods, and community well-being, working closely with local stakeholders and international partners.
