# EU Deforestation Regulation: Will the traceability requirement hold smallholder producers back? - AidEnvironment

> 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.

- Date: 2022-06-30 · published 2022-06-30T12:00:00.000Z
- Category: policy · region EU · magnitude low
- Page: https://feedsoft.ai/events/40970-eu-deforestation-regulation-will-the-traceability-requirement-hold-smallholder
- Commodities: [Palm Oil](https://feedsoft.ai/c/PALMOIL.md)

## Why it matters

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.

## Read by commodity

- PALMOIL: neutral

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| PALMOIL | 2025-04-25 | [Was it produced legally? Understanding the 'legality requirement' in the EU Deforestation Regulation  \| ClientEarth](https://feedsoft.ai/events/25153-was-it-produced-legally-understanding-the-legality-requirement-in-the-eu.md) | -1.9% | -3.6% |
| PALMOIL | 2019-07-25 | [EU moves to tackle deforestation caused by chocolate and other products \| Environmental sustainability \| The Guardian](https://feedsoft.ai/events/58115-eu-moves-to-tackle-deforestation-caused-by-chocolate-and-other-products.md) | +0.2% | +8.1% |
| PALMOIL | 2024-08-29 | [The EU’s Regulation on Deforestation-Free Products (EUDR) \| Crowe](https://feedsoft.ai/events/28802-the-eu-s-regulation-on-deforestation-free-products-eudr-crowe.md) | +4.8% | +7.6% |
| PALMOIL | 2022-02-24 | [A Rocky Road - EU Regs, Deforestation and Just Transition for Smallholders](https://feedsoft.ai/events/42739-a-rocky-road-eu-regs-deforestation-and-just-transition-for-smallholders.md) | +13.5% | +11.1% |
| PALMOIL | 2024-05-23 | [What is the EU Deforestation Regulation (EUDR)? - Sustainability Online](https://feedsoft.ai/events/30266-what-is-the-eu-deforestation-regulation-eudr-sustainability-online.md) | +0.6% | +1.7% |

## Sources

- aidenvironment.org: https://aidenvironment.org/eu-traceability-blog/

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