The most significant piece of new food law in a generation?
Recently, a new law that has been the subject of discussion and debate for more than ten years went into effect. Every food company should be aware of this since it might have a seismic effect on the world food supply system and a hugely positive impact on climate change. Nevertheless, it rarely seemed to receive any journalistic coverage given all the problems both domestically and internationally.
The global source of greenhouse gas emissions that are causing our climate crisis and devastating the biodiversity of the globe is fossil fuels, with deforestation coming in second. In actuality, 10% of the world’s deforestation is caused by consumption in the EU.
Nonetheless, the EU Regulation on products free of deforestation went into effect on June 29, 2023. The goal of this is to ensure that the goods that EU residents use do not contribute to global deforestation or forest degradation. The sheer number of products this will impact is astounding. These are only a handful of them: Printing paper goods, rubber, leather, chocolate, soy, beef, palm oil, timber, cocoa, coffee, and tires.
What exactly does the new law mean, then? Basically, any company that sells any of these goods into the European Union has to be able to demonstrate that the goods are not from recently deforested areas and have not aided in the deterioration of forests. Voluntary systems have been in place for a long time, but they have largely failed—and pretty horribly at that—to restrict the flow of commodities from endangered areas into Europe. Things are going to be better from here on out.
Currently, the European Commission is dividing up the world’s nations into three risk categories: low, standard, and high. Penalties for breaking the rules or simply failing to exercise due diligence will be appropriate but also, as the Commission puts it, deterrent. Four percent of the non-compliant business’s total yearly turnover in the EU is the maximum fine that has been imposed. In addition, all goods connected to deforestation need to be taken off the market. When we combine these, we may discuss potentially disastrous outcomes for any company, no matter how big or small, that is found guilty of the charges brought against it. Everyone has eighteen months to get their act together.
Of course, there’s still a crucial question: would the UK do the same? As the nation prospects are not favorable as society retreats from ever-higher climate commitments. Few businesses that use or sell any of the above products should rest easy, though, as we continue to trade with the EU in spite of all the self-imposed barriers brought about by Brexit. The likelihood of being connected to deforestation on a worldwide scale, experiencing significant recalls of food products, and falling victim to false claims of provenance ought to put most firm boards on high alert.
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Few businesses actually have their supply chains thoroughly planned out and properly monitored, despite the fact that at best some believe they have a fair understanding of them. Numerous organizations, including many large “NGOs” with the goal of conserving rainforests, depend on routine and occasionally sporadic audits. These, in my opinion, are not appropriate.
To make sure that what is bought and sold is not a part of the global trade in goods connected to deforestation, there are ways to ensure this, though. Supply chains are becoming increasingly digitalized, and a select group of progressive businesses are beginning to employ cutting-edge sampling and testing programs to verify the data contained in these systems. My colleagues and I at the Institute for Global Food Security started a project two years ago to find out the true origins of soy. We’ve made great progress in this area, and we hope to share some exciting news before the year is up. There are not many reasons why non-food and other kinds of food materials can be tracked in the same manner. The complexity and associated expenses will be the primary concerns.
However, it is encouraging to learn that some of the major players in the chocolate industry globally recognize the urgency of the situation and acknowledge that it will cost them more money, which they may choose to pass along to their customers.