If you’re running a bakery or dairy operation in the DACH region, you’re feeling the heat—literally and legislatively. Climate targets are tightening, packaging rules are changing, and ingredient sourcing is under a microscope. The push for sustainability compliance isn’t just coming from consumers anymore—it’s codified in law, and it’s reshaping how food is made, packaged, and reported.

What does this mean for you? Nachhaltigkeit (sustainability) is no longer optional. From carbon labeling to due diligence audits, regulators now expect proof—not promises—that your products and suppliers align with Europe’s evolving sustainability goals. And for businesses already managing perishables, tight margins, and legacy systems, this shift adds a whole new layer of complexity.

But there’s also opportunity. Producers that lean into the change can strengthen brand trust, win new contracts, and outpace competitors still scrambling to catch up. Below, we break down the most impactful sustainability regulations now shaping the DACH region—and what bakery and dairy manufacturers can do to stay ahead.

The regulatory landscape: What’s on the table

1. EU Green Deal and Farm to Fork Strategy

The EU Green Deal, paired with the Farm to Fork Strategy, aims to make Europe’s food system “fair, healthy, and environmentally friendly.” For bakery and dairy producers, this means reducing emissions, minimizing food waste, and embracing organic ingredients. 

Carbon footprint disclosures and waste tracking are moving from voluntary to expected. Whether you’re managing emissions from dairy herd operations or reducing bakery ingredient waste, adapting to these goals isn’t optional—especially if you want to compete on the shelf with sustainability-focused brands.

2. Corporate Sustainability Reporting Directive (CSRD)

The CSRD expands mandatory reporting for large companies and listed SMEs. You’ll need systems in place to accurately capture, measure, and communicate environmental and social impact data.

In a sector already juggling cost pressures and seasonal variability, the CSRD makes digital tools essential. From water usage in cheese processing to emissions tied to flour sourcing, producers must now surface and share this data in structured, auditable ways.

3. EU Deforestation Regulation (EUDR)

By the end of 2025, the EU will ban the import of products linked to deforestation—putting ingredients like cocoa, soy, and palm oil under intense scrutiny. For bakery and dairy producers, that means proving your supply chain is deforestation-free with verifiable data down to the farm level.

The regulation raises the bar for traceability, especially for items like filled pastries, dairy desserts, and baked goods using imported fats or flavorings. While it adds documentation pressure, it also gives brands a chance to lead on ethical sourcing—an increasingly powerful lever for nachhaltigkeit-minded consumers. 

4. Supply Chain Due Diligence Act (LkSG)

Germany’s LkSG mandates rigorous due diligence around human rights and environmental standards across the supply chain. Food producers must conduct supplier audits and demonstrate traceability back to the farm or facility. 

Bakery and dairy brands relying on imported vanilla flavoring, for example, will need to document ethical sourcing and prove that their ingredients align with evolving compliance thresholds.

5. German Sustainability Code (DNK)

The DNK provides a voluntary but increasingly influential framework for sustainability reporting. Bakery and dairy companies that adopt the code can differentiate themselves by aligning operations and procurement practices with clear environmental and social goals. 

As retailers and partners begin to prioritize vendors with strong DNK profiles, adopting this standard could become a competitive advantage, especially for mid-sized producers looking to expand their footprint.

6. Austrian Federal Procurement Act (BVergG)

If you’re supplying to public institutions in Austria—schools, hospitals, or government facilities—you’ll need to meet stricter sustainability criteria under BVergG. This includes everything from ethical sourcing to sustainable packaging and transport logistics.

The opportunity? Securing public contracts that are increasingly biased toward sustainable producers. The risk? Falling behind competitors that are quicker to demonstrate sustainability compliance.

7. Swiss Federal Act on Public Procurement (BöB)

Switzerland’s BöB embeds environmental and social performance into its public procurement scoring. If your business supplies to Swiss municipalities or cantons, you’ll need to prove your sustainability credentials across operations.

For dairy producers, this might mean showing lifecycle data for milk or cheese production. For bakeries, it could involve offering products made with local grains or sustainably sourced additives.

8. Packaging and Packaging Waste Regulation (PPWR)

The PPWR mandates that all packaging must be recyclable by 2030 and includes recycled content targets. For bakery and dairy producers, this means rethinking packaging from the ground up—without compromising product integrity.

Expect increased scrutiny from both regulators and eco-conscious customers. But also consider the brand loyalty that can come from leading with clean, compliant, and climate-smart packaging. 

Sustainability compliance = competitive edge

These sustainability regulations aren’t just about penalties—they’re about positioning. In a region where nachhaltigkeit increasingly guides purchasing decisions, bakery and dairy producers that act early can use sustainability compliance as a market advantage.

Consumers want transparency. Retailers want assurance. Governments want proof. And all of them are demanding the same thing: reliable, accessible data that shows how products are sourced, made, and packaged—with minimal harm to people and planet.

That’s why now is the time to invest in connected, automated systems that can manage environmental reporting, track supplier performance, and simplify packaging and sourcing decisions. Because sustainability isn’t something you do later. It’s how you win now.

Leveling up your compliance strategy

Together with leading environmental, social, governance (ESG) data partners, TraceGains helps bakery and dairy producers move beyond guesswork and gain actionable insights into environmental and social risks across their supply chains.

Through our growing partner network, you can layer verified ESG intelligence directly into your workflows, helping you stay ahead of emerging regulations and retail expectations:

• HowGood – Ingredient-level sustainability intelligence, including carbon, water, and biodiversity impact scoring 

• DitchCarbon – Real-time emissions data and benchmarking for corporate and product-level climate performance 

• Sustained – Product lifecycle impact calculations, including emissions, water, land use, and packaging sustainability 

• Global Forest Watch – Satellite-based monitoring to assess deforestation risk across sourcing regions 

These partners transform static supplier data into dynamic insights—powering smarter decisions, stronger documentation, and a faster path to compliance. 

Strengthen your sustainability compliance with TraceGains

Digitize supplier data, automate risk-based audits, and gain full visibility into your global sourcing network—all with a solution built to meet the evolving demands of bakery and dairy operations: Supplier Compliance. And for producers looking to build a robust environmental reporting strategy, Sustainability Management offers the tools to track emissions, manage improvement plans, and align with both regulatory and retailer expectations.

Request a demo to see how TraceGains can help you navigate sustainability in the DACH region—without losing your competitive edge.