The global food industry has expressed concerns about meeting the European Union’s impending regulations targeting carbon emissions and deforestation. Above all, it emphasizes a tight deadline amidst proposals that lack detail and are not sufficient to prevent deforestation, reports the Financial Times.
These new rules, set to be enforced by the end of next year, will mandate companies to confirm that their products are not linked to recently deforested land. This move affects commodities like palm oil, coffee, cocoa, beef, soy, and rubber, marking the EU as the first region to introduce such a restriction.
However, many in the industry point towards a last-minute effort as most crops for 2024-2025 are already planted. There’s uncertainty about a pending list of “high-risk” countries which will undergo extra checks for exported commodities. This list is crucial for shaping future supply chains but has faced diplomatic objections from agricultural nations in the global south.
Food industry calls for more time
Nathalie Lecocq, director-general of the EU’s vegetable oil trade group Fediol, criticized the timing of these guidelines, reinforced the idea that industries need more time to invest and adapt. “In certain instances, you need to invest . . . you cannot wait until the last minute,” she told the Financial Times.
Companies in the EU will have to provide precise locations of where their commodities are produced. Still, there’s ambiguity about the strictness of these checks, which vary depending on the deforestation risk of the producing country. This has led to challenges in contract negotiations and concerns over who will shoulder potential noncompliance fines.
Industry professionals also point out that the EU’s broad definition of deforestation could lead to a two-tier system, in which deforestation-free goods are shipped to Europe and non-compliant items to other regions. This could man higher prices for European consumers without solving the deforestation issue.
Reducing the impact on small producers
Governments in Indonesia and Malaysia — the two largest palm oil producers — insist that small producers would need more time to meet such requirements. Smallholders make up 41% and 27% of total palm oil planted areas in Indonesia and Malaysia respectively. They contribute to about 35-40% of global palm oil production.
Traceability, for example, would be a huge issue due to barriers surrounding education and digital literacy. Still, these governments are working to implement solutions. For example, Indonesia is working on a “clearing house” for palm oil producers in which all information necessary for compliance could be entered in a single scheme.
“We don’t want smallholders to be confused with the number of documents they need to fill,” said Musdhalifah Machmud, deputy minister for food and agribusiness. “That’s why we want to implement a single scheme.”
Experts in the food industry emphasize the need for a comprehensive approach to sustainability, extending beyond mere traceability. This involves working closely with smallholders in high-risk areas, and collaboration among farmers, civil society, and local governments.
This is in direct contrast to larger companies who have the capacity and resources to comply. Global powerhouse Cargill has already adopted real-time satellite monitoring to measure deforestation risks, for example.
Comments 1