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AidEnvironment concludes that the EU Deforestation Regulation's traceability requirement is unlikely to harm smallholder producers in palm oil and cocoa. Smallholder representatives in a closed EU panel supported strong traceability, saying it could improve their market position.
The regulation is due to take effect in 2023.
Traceability requirements that apply evenly could keep smallholder palm oil supply flowing into EU channels, limiting the risk of supply disruption. The impact on feed-relevant prices is small.
aidenvironment.orgNot-for-profit sustainability strategy organisationJun 30, 2022After 513 past neutral policy events, Palm Oil moved a median 0.0% over 5 sessions (50% higher; middle half -1.6% to +1.4%), and -0.1% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
