One of the central requirements of the European Union Deforestation Regulation (EUDR) is the ability to trace commodities back to their origin. While the concept seems straightforward, implementing full traceability is often the most difficult aspect of compliance.
What Is Supply Chain Traceability?
Traceability means identifying the precise location where a commodity was produced. Under EUDR, companies must provide geolocation coordinates of farms or production plots.
This requirement allows authorities to verify whether land was deforested after the regulation’s cut-off date of 31 December 2020.
Challenges for Exporters
Many agricultural supply chains involve multiple intermediaries, smallholder farmers, and informal procurement systems. As a result, exporters may not always have detailed information about the origin of their commodities.
Common challenges include:
- lack of farm-level data
- fragmented supplier networks
- limited digital tracking systems
- inconsistent documentation.
The Importance of Geolocation Data
EUDR requires precise coordinates of production areas, often using global positioning systems (GPS). In some cases, companies must provide polygon mapping for larger plantations.
This data enables authorities to cross-reference production areas with satellite imagery and forest monitoring databases.
Building a Traceability System
To meet EUDR requirements, companies must develop structured supply chain documentation systems.
Key elements include:
- supplier registration processes
- farm location databases
- digital recordkeeping
- regular supplier verification
A New Era of Transparent Supply Chains
Although compliance may seem complex initially, traceability systems offer long-term benefits. They help companies improve supply chain visibility, strengthen sustainability commitments, and build trust with international buyers.