The European Union Deforestation Regulation (EUDR) sets rigorous expectations for companies, demanding meticulous management of data quality, legality, and deforestation issues. Insights from Thomas Vaassen, Meridia's co-founder and CEO, highlight the challenges, solutions, and timelines required to meet these standards.
EUDR data quality issues
Data quality underpins EUDR compliance. Errors such as incorrect geolocations, topological mistakes, and implausible plot boundaries can derail submission efforts. Alarmingly, approximately 12% of farm plots for EUDR datasets globally exhibit data quality issues (which often means hundreds or even thousands of farm plots per dataset), ranging from minor discrepancies to significant risks that could compromise reliability. Additionally, datasets with doughnut-shaped plots or other anomalies will face automatic rejection by the EUDR Information System (where due diligence statements under the EU Deforestation Regulation must be submitted).
Solutions for EUDR data quality issues
Issues such as self-intersections or minor boundary misrepresentations can often be resolved through desk analysis using high-resolution satellite imagery. For more complex errors, field verification involving direct farm visits is essential.
Companies processing large datasets—sometimes containing millions of farm plots—need GIS specialists and data enhancement tools to address these issues systematically. Meridia’s automated tools can handle up to 40% of low-hanging fruit issues, while field visits can take weeks or months, depending on the dataset’s size.
EUDR legality issues
Ensuring farms comply with local laws, including land rights and protected area regulations (for example, Indigenous Peoples and Local Communities' land rights violations), is critical. Farms located within protected forests or those without proper permits are at high risk of non-compliance.
Solutions for EUDR legality issues
A desk analysis can verify protected area boundaries using up-to-date maps and consultation with legal experts. If confirmed illegal, the farm’s produce must be segregated, and farming activities must be relocated outside the protected zone. Remediation processes can also involve farmer support to transition to alternative income-generating activities.
Meridia has reported that, on average, 1% of farm plots in EUDR datasets contain legality issues, but resolving these requires intensive legal checks and field efforts. Since the resolution of legal issues requires verification on a regional basis, working on hundreds of farm plots could be time-consuming.
EUDR deforestation challenges
Preventing illegal deforestation is central to EUDR compliance. This involves identifying deforestation that occurred post-2020 and ensuring segregated supply chains for compliant and non-compliant produce.
Solutions for EUDR deforestation challenges
Conduct a visual inspection to confirm deforestation and segregate produce from affected plots. Establish a segregated flow through the supply chain, ensuring evidence of compliance is recorded. Companies should also implement remediation measures, such as reforestation initiatives.
On average, deforestation is detected in 2% of the farm plots in EUDR datasets. Non-compliance can have far-reaching consequences for supply chain integrity and market access due to the risk of contamination. Many crops covered by the EUDR can be mixed at any stage after harvesting. However, since the EUDR mandates that products entering the EU market must be completely deforestation-free, even one non-compliant farm plot can render the entire shipment non-compliant, leading to significant financial and operational risks.
Comprehensive steps for resolution
To address data quality, legality, and deforestation issues effectively, companies should conduct:
- Desk analysis: Address simple issues such as topological errors and boundary adjustments using satellite imagery.
- Field verification: Dispatch field teams to remap plots and collect evidence. This requires advanced training and careful scheduling, as field teams often have competing responsibilities.
- Legal verification: Work with local legal experts to ensure compliance with land rights and other regulations.
- Deforestation risk assessment: Use detailed deforestation maps and segregate non-compliant volumes from the supply chain.
- Supply chain adjustments: Ensure produce from non-compliant plots is properly segregated, with robust monitoring systems.
Timeframe to resolve data issues
The resolution process depends on dataset size and complexity:
• Small datasets: For a few hundred plots, resolution can take two months.
• Larger datasets: For thousands of plots, expect three to six months.
Conclusion
Addressing EUDR compliance is resource-intensive but necessary. Companies that embrace the complexities of data quality, legality, and deforestation will secure their position in the European market while supporting broader sustainability goals. Thomas Vaassen, Meridia's CEO and data expert, notes, “The winners will be those who invest in robust data systems, ensuring both compliance and long-term supply chain resilience.”
