Latest News

Nestle and others warn that EU law delays endanger forests worldwide

Nestle, Ferrero, and Olam Agri are among the major agri-food firms that have warned about the dangers of deforestation in forests around world due to delays by European Union.

The EU last month proposed delaying the launch of its anti-deforestation law for a second time, citing concerns about the readiness of information-technology systems needed to support the law.

The ban on palm oil imports linked to forest destruction could be delayed for an additional year.

The EU and its trade partners, such as Brazil and the United States, are strongly opposed to this law. Last week, EU Commissioner Jessika Roswall stated that the delay in implementing the law was not due to U.S. concerns.

In a letter sent to Roswall, a copy was also sent, the companies that operate in the cocoa and dairy sectors, as well as the wood, rubber and other agrifood industries, stated that it is essential to have clear rules for EU competition and that they were already investing and preparing "in good faith" to comply.

The letter from October 2 stated that "we remain on track to meet the EUDR obligations in full by the 31 December 2025." The proposed delay will put at risk the conservation of forests around the world, accelerate climate change effects, and undermine trust in Europe's regulatory obligations.

Companies said that any change at this time would create uncertainty, annoy investors and increase the risk of rules being further watered-down.

Francesco Tramontin (Vice President, Institutional Affairs, Ferrero Group) said that greater transparency in the supply chain is crucial for managing risk.

The EU deforestation legislation was set to come into effect on December 30 and will require operators who sell goods such as soy, beef, and palm oil to EU markets to prove their products do not cause deforestation. (Reporting and editing by Emelia Sithole Matarise; Virginia Furness)

(source: Reuters)