The European food industry is facing a potential crisis as the implementation of the EU Deforestation Regulation (EUDR) looms, with many companies unprepared for compliance. A letter from global consultancy Competere warns that insufficient resources, information, and time could lead to significant disruptions in the supply chain. German Chancellor Olaf Scholz and other officials have called for a suspension of the regulation due to its complexity and anticipated negative effects on global trade.

The EUDR is expected to increase prices and exacerbate vulnerabilities for smallholders and consumers already impacted by inflation. Competere suggests a two-year transition period to allow businesses to adapt, along with a temporary suspension of sanctions during this time. However, environmental advocates like Global Witness argue that delaying the EUDR would hinder efforts to combat climate change and protect biodiversity, emphasizing the urgency of its implementation. The European Commission has stated that it is committed to ensuring timely compliance with the legislation.