Impact of EUDR on Smallholders and the Importance of Due Diligence in the EU Supply Chain

Palm Oil Magazine
Impact of EUDR on Smallholders and the Importance of Due Diligence in the EU Supply Chain. Photo by: Sawit Fest 2021/Muhammad Syukron

PALMOILMAGAZINE, JAKARTA – Senior Campaigner Kaoem Telapak, Denny Bhatara, believes that the European Union Deforestation Regulation (EUDR) is a policy that will bind operators and traders within the EU.

Therefore, both parties must publish statements on due diligence to ensure that their import-export goods to and within the EU are legal and free from deforestation or forest degradation. The traceability of these goods should extend to the specific plots where the commodities were produced.

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He noted that the implementation of EUDR will indirectly impact smallholders who supply materials within the EU supply chain. This impact will cover two main aspects: first, traceability, which must ensure the products are free from deforestation, and second, compliance with the regulations of the country of origin.

Also Read: Ensuring Fairness: Indonesia and United Kingdom Discuss Due Diligence in Palm Oil Trade

EU operators and traders must also publish due diligence reports confirming that the origin of imported products, particularly crude palm oil (CPO), palm kernel oil (PKO), and their derivatives, is legal and has not contributed to deforestation or forest degradation.

The check of the origin should cover, such as, the first, how the products were produced by publishing documents of the supply chain. This part would deliver impacts in the mill unit. The second, there should be documents where the products are located and produced. The documents should inform geolocation (for the areas more than four hectares, there should be polygon form).

“Besides, the legality and traceability aspects to the regulation from the original countries that regulate how some products were produced, should be checked by the operators and traders in EU, for instance, the business permit (cultivation documents), and others,” Denny recently said to Palmoilmagazine.com. (P2)

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