Impending supply bottlenecks for cocoa due to systematic shortcomings in the EU deforestation regulation

Pragmatism required from the EU Commission

22-May-2024

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The Federal Association of the German Confectionery Industry (BDSI) expresses serious concerns about the imminent introduction of the European Deforestation Regulation (EUDR), which is to apply from December 30, 2024. With less than eight months to go before the launch, key application issues remain unresolved, posing significant challenges for the industry and undermining the legitimate concern of forest protection.

The confectionery industry is currently not in a position to meet the requirements of the EUDR with legal certainty, primarily due to systematic shortcomings in the regulation. The lack of a timely IT system provided by the EU Commission, which will only be ready for use shortly before the deadline, is particularly critical. The bureaucratic effort and the amount of data to be collected are currently not feasible for end processors, both technically and logistically. Additional uncertainties arise from the unclear regulation of certain materials such as wooden pallets and decorative gift packaging. These are in a legal gray area, which increases compliance risks for companies and impairs planning security.

Dr. Carsten Bernoth, Managing Director of the BDSI, emphasizes the urgency: "The conditions for proper application of the EUDR are not in place and time is running out before the launch. Without practicable solutions from the EU Commission, there is a risk of a false start with far-reaching consequences for the supply of agricultural commodities and food in the EU. If it is not clear what is EUDR-compliant at the time of the regulation, the compliant goods will simply not be available and there is a risk of a significant increase in costs."

The BDSI is calling on the EU Commission to make the necessary clarifications without delay, especially for materials that are currently in a legal gray area. This is crucial in order to give companies sufficient time to prepare. The support of the German government is indispensable. The BDSI is ready to help develop practicable solutions. "In principle, we support the fight against deforestation and are prepared to work together to find solutions that ensure both environmental protection and economic feasibility," continued Bernoth.

Note: This article has been translated using a computer system without human intervention. LUMITOS offers these automatic translations to present a wider range of current news. Since this article has been translated with automatic translation, it is possible that it contains errors in vocabulary, syntax or grammar. The original article in German can be found here.

https://www.yumda.com/en/news/1183513/impending-supply-bottlenecks-for-cocoa-due-to-systematic-shortcomings-in-the-eu-deforestation-regulation.html