Major food companies protest against EU’s deforestation law delay, urging action.
- Nestlé, Ferrero, Unilever, and Mars express concerns over regulatory uncertainty.
- The EU’s deforestation law aims to ban products linked to deforested lands.
- The law’s delay affects industry investment and supply chain planning.
- Lobbying from countries like Brazil and Malaysia influences EU policy delays.
Several leading food manufacturers, including Nestlé, Unilever, Mars, and Ferrero, have expressed their strong opposition to the European Union’s decision to delay the implementation of a significant deforestation law. This legislation, initially scheduled to take effect on 30 December, aims to prohibit the sale of food products containing ingredients sourced from deforested land, such as cocoa, palm oil, rubber, and wood. The postponement of this policy has introduced a layer of uncertainty within the industry, creating challenges for companies attempting to strategise their production and supply chain logistics.
In a concerted statement, these confectionery giants warned that any further stalling by the European Parliament could potentially jeopardise firms that rely heavily on cocoa and rubber imports, as they face ambiguity in securing their raw materials. Such uncertainty could have broader repercussions for their operations and strategic investments, as well as the availability of these commodities.
The European Commission has cited significant lobbying from countries that produce these commodities, including Brazil, Indonesia, and Malaysia, as a primary reason for the law’s delay. These nations have pressured the EU, arguing that the proposed restrictions could adversely affect their economic interests and trade relationships.
Francesco Tramontin, Ferrero’s Global Public Affairs Vice President, stressed the importance of maintaining the current regulatory framework. He noted that avoiding any potential reopening of the regulation is vital for preserving the efforts companies have already made towards sustainable practices and fostering further investments. Similarly, Bart Vandewaetere, Nestlé Europe ESG Engagement Vice President, highlighted their company’s compliance with the law’s provisions and the considerable steps their suppliers have taken towards adherence. Both executives urge policymakers to retain the framework’s integrity without revisiting its components.
This development follows an earlier appeal by supermarket chains for the implementation of measures controlling commodities that contribute to deforestation. These chains have called for alignment with EU regulations to ensure a consistent approach across the market.
The delay in the EU deforestation law, influenced by international lobbying, continues to create uncertainty for major food firms reliant on at-risk commodities.
