Implication of new EU deforestation rules for UK companies
From 30 December 2024 it will be unlawful for all large companies with over 250 employees to place products onto the EU market (which in this instance includes Northern Ireland) that involve deforestation in their supply chain. Shipments of meat, frozen food, ready meals and other products going into grocery, hospitality and food service could be blocked or confiscated and a fine of up to 4% of annual EU turnover levied on businesses that fall foul of the new rule.
The EU Deforestation Regulation (EUDR) will mandate a due diligence statement that must include evidence of a risk assessment and risk mitigation. Lawyers from international law firm Fieldfisher have written an article outlining the steps that food manufacturers should take to prepare. These include conducting a scoping assessment to identify affected commodities, establishing robust data collection systems, ensuring contractual safeguards, screening suppliers rigorously, and forecasting stock needs.