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A Fresh Start to a Stalled Implementation

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  • 24 Greenway Plaza Houston, TX 77046 Suite 1800
  • Tel: 713 893 9614

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The European Commission has confirmed a one-year extension to the EU Deforestation Regulation (EUDR). Large and medium companies must now comply by December 30, 2026, while small and micro businesses have until June 30, 2027. 

This delay reflects challenges with the EU’s IT infrastructure and industry readiness, but the regulation’s core requirements remain unchanged: commodities such as coffee, cocoa, palm oil, soy, wood, rubber, and cattle must be deforestation-free and legally produced as of December 31, 2020. 

At The Vessel Group, we see this extension not as a pause, but as a bonus window to prepare more thoroughly. For businesses sourcing from high-risk regions, particularly coffee and cocoa supply chains, traceability and compliance remain critical. 

Five Actions to Prioritise Now

  1. Audit Supply Origins:  Map farms, cooperatives, and collection points linked to your purchases. Accurate geolocation and proof of land use are essential. Satellite and supply chain data platforms can streamline compliance and reduce audit risk.
  1. Strengthen Supplier Partnerships:  Deforestation risks often lie upstream among smallholders. Engage early,provide clear guidance, and support data collection through trusted local partners. Building trust and offering practical support will be critical to keeping suppliers compliant and included. 
  1. Focus on High Risk Regions:  The EU will classify countries by risk level. Cocoa from West Africa, for example, may face greater scrutiny. Prioritise readiness in these regions with mock audits and early compliance checks. 
  1. Embed Compliance in Contracts:  Update procurement contracts to include EUDR clauses. Require suppliers to certifytheir products as deforestation-free and provide supporting evidence. This creates accountability and ensures a clear audit trail. 
  1. Train Internal Teams:  Equip procurement and quality teams with checklists, risk matrices, and documentation policies. Compliance records must be retained for at least five years, with due diligence statements submitted to the EU portal. 

The Vessel Group Perspective

The EUDR extension provides breathing room, but the direction of travel is clear: transparency, traceability, and accountability will define future supply chains. Companies that act now will be better positioned to avoid disruption, meet regulatory expectations, and differentiate themselves on sustainability. 

At The Vessel Group, we help clients turn compliance into competitive advantage whether through supply chain mapping, supplier engagement strategies, or embedding due diligence frameworks into daily operations. 

Delay or not, the time to act is now. 

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