The clock is ticking for food and beverage companies as the European Union Deforestation Regulation (EUDR) deadline looms. More than just another compliance hurdle, EUDR represents a fundamental shift in how businesses must approach sustainability, requiring unprecedented transparency in sourcing, supply chain monitoring, and risk assessment. Companies that fail to meet these requirements risk not only supply chain disruptions and reputational damage, but may also find themselves unable to offer products within the European Union (EU) as a whole. However, with the right tools and strategies, EUDR readiness can become an opportunity rather than a burden.

The EUDR: A sustainability wake-up call

Adopted to combat global deforestation and its link to agricultural production, the EUDR sets a new standard for product traceability and accountability. It aims to ensure that relevant goods entering the EU market are “deforestation-free” and comply with the laws of their country of origin. This means products must not originate from land converted from forest to agricultural use after 31 December 2020. 

The EUDR’s scope extends to key commodities like soy, palm oil, coffee, cocoa, beef, and wood, as well as derived products. Notably, its provisions apply to goods produced on or after 29 June 2023, with specific timelines for timber products. The regulation also introduces strict due diligence requirements, compelling companies to demonstrate negligible risk of non-compliance before placing products on the market. 

What sets the EUDR apart is its focus on preventing deforestation that is legal under the laws of producing countries, addressing an estimated 30% of deforestation linked to commercial agriculture in tropical nations. Enforcement will rely on national authorities within EU member states, with severe penalties for violations, including fines, product confiscation, and market bans. 

While the main obligations take effect from December 2025 (or June 2026 for smaller businesses), their impact is immediate for companies preparing supply chains today. Ensuring readiness requires not only meeting traceability and legal compliance standards but also implementing robust risk assessment processes.

Navigating these challenges requires a clear understanding of the EUDR’s key compliance hurdles. Let’s explore the five compliance curveballs businesses must address to stay ahead.

The top EUDR compliance curveballs

1. Pinpointing Product Origins with Geolocation Data
Companies must collect and maintain precise geolocation data for every plot of land used to produce relevant commodities. This requirement extends to all products entering the EU market from 29 June 2023 onwards, with special exceptions for recycled materials. The data must unequivocally confirm that no deforestation occurred on the land after 31 December 2020. Additionally, businesses must store and link this geolocation data to due diligence statements, ensuring transparency for regulators and supply chain partners alike.

2. Untangling Multi-Tier Supply Chains
EUDR compliance requires businesses to trace their supply chains down to the raw material level, a challenge exacerbated by multi-tiered supply networks that may involve hundreds of suppliers. Identifying each supplier’s role in the production process and verifying compliance with land-use regulations is critical. Companies must also prepare to support smaller suppliers, many of whom may lack the technical capacity to meet EUDR standards, through training and resource investment. 

3. Executing Comprehensive Risk Assessments
Businesses are required to assess risks across multiple dimensions, including environmental impact, labor practices, third-party rights, and tax compliance. All countries are currently considered “standard risk” until the publication of the EU’s country risk list in June 2025. Operators must mitigate risks proactively through independent audits, additional documentation, or supplier capacity-building initiatives. Failure to demonstrate negligible risk in due diligence statements can result in product confiscation or market exclusion.

4. Aligning with Country-of-Origin Laws
The EUDR enforces compliance not only with EU standards but also with the legislation of the country of production. This includes verifying land-use rights, adherence to international human rights laws like Free, Prior, and Informed Consent (FPIC), and compliance with local environmental and tax regulations. Companies must maintain robust documentation to prove adherence to these laws, as any inconsistencies could result in severe penalties. 

5. Meeting Documentation and Reporting Demands
From December 2025, companies must upload due diligence statements to a centralized European Commission platform before placing products on the EU market. These statements must include detailed information on sourcing, geolocation data, and risk assessments, along with evidence of negligible risk. Importantly, due diligence statements must be communicated throughout the supply chain, ensuring downstream partners have full visibility into compliance efforts. Failure to meet these documentation requirements can result in severe penalties, including fines of up to 4% of annual EU turnover or public procurement bans.

The role of digital solutions in compliance

Achieving EUDR compliance requires businesses to leverage technology that enables real-time data collection, supply chain visibility, and automated risk assessments. Digital platforms streamline due diligence by centralizing supplier documentation, tracking sustainability metrics, and flagging potential risks before they become compliance issues. 

TraceGains’ advanced supply chain solutions help businesses stay ahead of EUDR requirements, ensuring compliance while enhancing operational efficiency. 

How to ensure EUDR readiness

TraceGains leverages geospatial tools through its partnership with Global Forest Watch Pro (GFW Pro) to ensure businesses can collect and analyze precise geolocation data for all relevant commodities. With seamless integration into TraceGains’ Compliance Suite, GFW Pro enables satellite imagery and AI-driven deforestation tracking, allowing companies to confirm compliance and mitigate risks. Additionally, Supplier Compliance and Audit Management, part of TraceGains’ Compliance Suite, provides a unified platform to automate due diligence and ensure end-to-end visibility.

Advanced geospatial tools combined with compliance management helps businesses to streamline risk assessments, enhance audit readiness, and consolidate supplier tracking and documentation—offering a comprehensive solution that aligns with EUDR mandates and fosters resilient, sustainable supply chains. 

The road to compliance starts now

The EUDR is more than a regulatory requirement—it’s a catalyst for long-term, sustainable change in the food and beverage industry. With the right tools and partners in place, companies can streamline compliance efforts, mitigate risks, and transform sustainability into a strategic advantage. 

As the December deadline approaches, the time to act is now. Request a demo to learn more about how TraceGains can help you meet EUDR requirements.