# New EU rules for deforestation-free products: Great for forests, a double-edged sword for smallholders | HCV Network

> An HCV Network article argues the proposed EU deforestation rules will benefit forests but could disadvantage low-capacity smallholder suppliers in the tropics. It warns that buyers may shift sourcing to lower-risk regions or substitute materials. A Nature Positive Farming tool is promoted for engagement.

- Date: 2022-02-17 · published 2022-02-17T12:00:00.000Z
- Category: policy · region EU · magnitude low
- Page: https://feedsoft.ai/events/42741-new-eu-rules-for-deforestation-free-products-great-for-forests-a-double-edged
- Commodities: [Palm Oil](https://feedsoft.ai/c/PALMOIL.md), [Soybeans](https://feedsoft.ai/c/SOY.md)

## Why it matters

If buyers shift away from tropical smallholder supply, palm oil and soy availability into the EU could tighten, supporting prices, although the impact is speculative.

## 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 | 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 | 2023-11-15 | [Regulation (EU) 2023/1115 on deforestation-free products](https://feedsoft.ai/events/33210-regulation-eu-2023-1115-on-deforestation-free-products.md) | +0.9% | -3.4% |
| PALMOIL | 2022-08-04 | [Deforestation-free supply chains: EU draft hints at new requirements for economic operators](https://feedsoft.ai/events/40054-deforestation-free-supply-chains-eu-draft-hints-at-new-requirements-for.md) | +4.6% | +5.8% |
| PALMOIL | 2024-10-03 | [EU proposal to delay anti-deforestation rule bullish for palm oil: analysts \| S&P Global](https://feedsoft.ai/events/7240-eu-proposal-to-delay-anti-deforestation-rule-bullish-for-palm-oil-analysts-s.md) | -0.9% | +1.5% |
| 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% |
| SOY | 2022-08-04 | [Deforestation-free supply chains: EU draft hints at new requirements for economic operators](https://feedsoft.ai/events/40054-deforestation-free-supply-chains-eu-draft-hints-at-new-requirements-for.md) | +8.4% | -3.2% |
| SOY | 2022-10-27 | [New rules for companies under the European Parliament's ambitious version of the proposal against deforestation - Etifor](https://feedsoft.ai/events/39168-new-rules-for-companies-under-the-european-parliament-s-ambitious-version-of.md) | +4.2% | +3.9% |

## Sources

- hcvnetwork.org: https://www.hcvnetwork.org/posts/new-eu-rules-for-deforestation-free-products-great-for-forests-a-double-edged-sword-for-smallholders

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