# EU's deforestation regulation: challenges and opportunities for food companies

> Green.earth outlines the EU deforestation regulation, which will apply from the second half of 2023 and covers seven commodities worth €85 billion in trade. Companies must trace goods to the plots where they were produced. The article notes that compliance costs and the need for alternative suppliers will likely raise prices for commodities destined for the EU.

- Date: 2023-03-22 · published 2023-03-22T12:00:00.000Z
- Category: policy · region EU · magnitude medium
- Page: https://feedsoft.ai/events/36902-eu-s-deforestation-regulation-challenges-and-opportunities-for-food-companies
- Commodities: [Palm Oil](https://feedsoft.ai/c/PALMOIL.md), [Soybeans](https://feedsoft.ai/c/SOY.md)

## Why it matters

Reduced compliant supply for EU buyers should lift prices of palm oil and soy destined for Europe and add a premium to certified product. The effect on broader feed markets depends on how much trade is diverted.

## Read by commodity

- SOY: bullish ▲
- PALMOIL: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| PALMOIL | 2023-01-04 | [For Indonesian smallholders, EU deforestation rule is a threat — and an opportunity](https://feedsoft.ai/events/37819-for-indonesian-smallholders-eu-deforestation-rule-is-a-threat-and-an-opportunity.md) | -4.5% | -7.0% |
| PALMOIL | 2024-01-15 | [EU Deforestation Regulation: considerations for commodities traders - Lexology](https://feedsoft.ai/events/32131-eu-deforestation-regulation-considerations-for-commodities-traders-lexology.md) | -0.2% | -1.4% |
| PALMOIL | 2022-11-17 | [Oil palm smallholder farmers and EU deforestation regulation](https://feedsoft.ai/events/38693-oil-palm-smallholder-farmers-and-eu-deforestation-regulation.md) | -0.3% | -0.9% |
| PALMOIL | 2023-11-14 | [European Union Deforestation Regulation Compliance](https://feedsoft.ai/events/33217-european-union-deforestation-regulation-compliance.md) | +2.4% | -0.3% |
| PALMOIL | 2022-09-21 | [Another step forward on the new “Zero-Deforestation” regulation - Etifor](https://feedsoft.ai/events/39606-another-step-forward-on-the-new-zero-deforestation-regulation-etifor.md) | -1.3% | -1.3% |
| SOY | 2023-11-14 | [European Union Deforestation Regulation Compliance](https://feedsoft.ai/events/33217-european-union-deforestation-regulation-compliance.md) | -0.1% | -3.2% |
| SOY | 2022-09-21 | [Another step forward on the new “Zero-Deforestation” regulation - Etifor](https://feedsoft.ai/events/39606-another-step-forward-on-the-new-zero-deforestation-regulation-etifor.md) | -4.8% | -7.2% |
| SOY | 2023-11-15 | [Regulation (EU) 2023/1115 on deforestation-free products](https://feedsoft.ai/events/33210-regulation-eu-2023-1115-on-deforestation-free-products.md) | +0.6% | -4.5% |

## Sources

- green.earth: https://www.green.earth/news/eus-deforestation-regulation-challenges-and-opportunities-for-food-companies

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.