Report Claims Global Supply Chains 'Alarmingly Underprepared' For EUDR – CoffeeTalk

A 2025 Forbes analysis has revealed that only 30% of upstream suppliers and 12% of downstream suppliers have established systems to trace deforestation risks, putting billions of EU-bound trade at serious risk. The European Union Deforestation Regulation (EUDR) began enforcement on 30 June 2026 for small companies and will come into force on 30 December 2025 for larger ones. Only commodities and derived products that are traceable, deforestation-free, legally produced, and properly documented are EUDR compliant and eligible for the EU market. Companies must ensure that products made from commodities are deforestation-free and produced in compliance with the laws of the country of origin. Businesses must also submit Due Diligence Statements that include risk assessments and geolocation data.

Consequences of non-compliance can include trade bans, financial penalties, and even potential criminal liability. Most supply chain actors remain unable to deliver the level of traceability required, with many companies struggling to secure consistent, reliable data from globally complex and opaque networks. Koltiva, the Swiss-Indonesian traceability expert, believes that global supply chains remain “alarmingly underprepared” to comply with stringent requirements. The regulation requires strict separation of goods, prohibiting any mixing between compliant, non-compliant, and unknown-origin commodities. Achieving full physical segregation when sourcing from smallholders is a significant hurdle for companies, as they often manage multiple plots, some compliant with EUDR, others not.

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