The EU Deforestation Regulation (EUDR), which currently applies to companies within the EU, means that Ukrainian producers selling domestically or exporting to countries like Turkey and Egypt may not immediately feel its impact. However, the situation will change if the regulation is incorporated into national laws. This was the opinion expressed by Volodymyr Pugachev, Executive Director of the “Danube Soy” association in Eastern Europe, during the second discussion panel titled “Key Aspects of the EUDR in the Context of Ukrainian Soy” at the “Soybean and Meal Market” conference on March 27.
As the expert noted, the EUDR regulation primarily targets companies introducing their products to the market for the first time.
“So, if the regulation becomes a part of national legislation, all domestic producers will definitely be affected,” he explained.
According to Pugachev, the EUDR could alter traditional business practices in the long term. Spot trading will become more complex, as exporters will need to verify substantial amounts of information from their suppliers before shipping the products.
“Soy and the soy processing industry are definitely covered by this regulation, but if we look at the product codes specified by the EUDR, one of Ukraine’s major exports, particularly to the European market, is product code 1806 (chocolate and other cocoa-based products). This will be subject to the EUDR too, despite being a complex product with high added value. It will be interesting to see how Ukrainian producers of these products, especially those working with EU countries, adapt, because it is more difficult for them. They will need to gather the necessary information from local farmers, but in some cases, they will have to source it from farmers in places like Côte d'Ivoire, and then process and transform it,” the expert concluded.
