A coalition of global food and consumer goods companies, including Nestlé, Mars Wrigley and Ferrero, has issued a new appeal to European policymakers, urging them not to introduce further delays or procedural pauses to the EU Deforestation Regulation. The group warned that repeated speculation and shifting timelines are creating instability across supply chains and undermining the efforts of companies that have already invested heavily to comply with the upcoming rules. Their statement raises a broader concern for Europe. Will hesitations around the regulation disrupt progress on forest protection or reinforce calls for clearer enforcement and long term certainty.

Growing Concern Over Renewed Attempts to Stall the Regulation

The companies’ letter comes after weeks of debate surrounding the EUDR’s implementation timeline. Earlier proposals suggested pushing the regulation back by one year due to concerns that the EU’s central data platform may not be prepared to handle large scale submissions from operators. While the European Commission has since reaffirmed that the regulation will still take effect at the end of this year, it introduced a six month grace period for enforcement and extended the applicability for small businesses until late 2026. The Commission also proposed simplifying obligations by focusing reporting requirements on the companies that first place goods on the EU market while easing responsibilities for downstream actors. Despite these adjustments, several member states continue to advocate for broader postponements, including a stop the clock measure that would pause implementation and reopen the regulation for reconsideration. The European Parliament is expected to determine its position on the Commission’s proposals shortly, creating heightened uncertainty across global supply networks.

Companies Warn Delays Would Undermine Responsible Actors and Harm Market Stability

In their letter, the companies expressed frustration with the ongoing uncertainty. They argue that postponements would penalise firms that have invested in traceability, digital systems and farmer engagement to meet the EUDR requirements. The proposed stop the clock approach, they said, would not only delay clarity but could also suspend progress indefinitely without assurance of what final obligations will look like. The companies contend that such a pause would generate sunk costs for responsible market participants while enabling competitors who have not yet advanced their compliance systems to gain time without consequence. Beyond commercial fairness, the signatories warned that repeated delays would weaken the EU’s credibility as a reliable partner for tropical forest countries that rely on strong European markets to support sustainable production.

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Mixed Industry Reaction to the Commission’s Simplification Measures

While the coalition welcomed the Commission’s introduction of an enforcement grace period, the companies noted that some elements of the proposed simplification could create new challenges for retailers and manufacturers. They cautioned that shifting the responsibility entirely to upstream operators may produce bottlenecks if it leads to inconsistent data or burdens suppliers whose systems are not yet mature. The companies proposed an alternative structure that would streamline responsibilities yet preserve the core principles of due diligence and traceability. Under their recommended approach, companies that first place products on the EU market would file due diligence statements, while all supply chain actors would still be required to maintain a due diligence system, address non compliance concerns and keep detailed records of their transactions. They argued that this model maintains the integrity of the regulation while reducing the total number of statements filed.

A Regulation Designed to Reshape Global Commodity Supply Chains

First introduced in 2021, the EU Deforestation Regulation seeks to ensure that commodities such as palm oil, beef, coffee, cocoa, timber, soy and rubber do not drive forest loss. It requires companies to trace products back to plot level and to prove that the goods originated from land not affected by recent deforestation or forest degradation. The law was originally scheduled to take effect at the end of 2024 but has already experienced a one year delay to allow companies time to build compliance systems. The current debate reflects broader pressures within global agriculture and commodity markets as countries seek to protect forests while maintaining trade flows and supporting producers.

Potential Consequences for Market Confidence and Forest Protection

If the regulation is postponed again, companies warn that deforestation risks may remain embedded in EU supply chains for longer and could weaken global cooperation on forest protection. Their letter states that further delays would significantly compromise the EU’s standing among producing countries, which have been working with private sector partners to improve transparency and meet new requirements. At the same time, uncertainty could discourage companies from finalising investments in traceability platforms, satellite monitoring tools and farmer engagement programmes. Without firm timelines, the business case for such investments becomes harder to justify, potentially slowing progress across entire sectors.

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What Comes Next as the EU Approaches a Key Decision Point?

The coming weeks will be critical as Parliament reviews the Commission’s amendments and member states continue to negotiate. The coalition of companies has made clear that they support targeted simplification but reject approaches that could suspend the regulation or dilute its core principles. The intensity of this debate reflects what is at stake. The EUDR represents one of the world’s most ambitious attempts to link market access to forest protection. Policymakers now face a choice between providing regulatory certainty that encourages companies to stay engaged or opening the door to further delays that could undermine both environmental outcomes and business confidence.

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