Why the Scottish beef sector fears impact of new EU deforestation rules
Euan Fernie August 15th 2024
This article was originally published in The Scotman
The Scottish meat industry has called on the UK and Scottish governments for more clarity on the soon-to-be implemented EU deforestation regulations as businesses could be at risk.
In four months time, new EU legislation that aims to reduce global deforestation by ensuring that products consumed on the EU market do not contribute to forest degradation worldwide will be enforced.
From December 31 this year, the regulation, which was part of the EU’s flagship Green Deal, will introduce mandatory due diligence rules for all operators and traders who export the following commodities to and from the EU market: cattle (beef and leather), palm oil, timber, coffee, cocoa, rubber and soy. Evidence must be provided to prove that any of these products can be established as “deforestation-free” otherwise “effective, proportionate and dissuasive” penalties will be issued, along with seizure of any illegal goods.
It will impact companies who export to the EU that have products including beef and processed beef, leather, chocolate products or cocoa powder, coffee or coffee substitutes and building materials, such as sheets of wood, laminated wood, wood flooring, among others.
As an example, those exporting beef products to the EU will have to prove that any beef sold on the EU single market, including in Northern Ireland, has not come from cattle raised on land that was deforested illegally to make space for grazing. They have been told they are required to provide geolocation coordinates of the cattle as evidence for this.
They will also have to demonstrate that the animals have not been fed animal feed that contains soy or palm oil that is driving deforestation abroad. Edinburgh-based Euan Fernie, partner at accountancy firm MHA, said:
it was crucial for Scottish businesses to make the necessary checks now to avoid the extensive penalties. These include fines proportionate to the environmental damage concerned, confiscation of products and/or revenue concerned, and temporary prohibition from placing or making available on the market or exporting relevant commodities and relevant products.
These penalties are wide-ranging and potentially business-ending. It is therefore crucial that there is good communication within the supply chain to ensure all facts are obtained and the status of the products are confirmed.
The red meat sector in Scotland, however, said despite being just months away from when these new regulations are due to come into force, there is no clarity on how the rules will be implemented in the UK.
Quality Meet Scotland (QMS), the public body responsible for helping the Scottish red meat sector, told The Scotsman they have come up with a proposed system to help beef exporters establish clear traceability of their cattle to suit the new regulations.
Despite contacting UK governments, the body said it is still in the dark on who is the correct authority to approve such proposals and policy advice.
The National Farmers Union Scotland (NFUS) has also called on the Scottish and UK governments to clarify who is responsible for EUDR negotiations for the UK.
Lisa Hislop, who is the NFUS livestock policy manager, said: “NFU Scotland is acutely aware of the potential impact that proposed EUDR could have on our industry, primarily our ability to export beef to the EU, and we are liaising with other stakeholders, as well as Scottish and UK Governments on the matter.
“NFU Scotland is also able to use staff in our Brussels-based office to keep abreast of any developments on this matter at a European level, particularly in areas where further detail on what will be required is lacking and whether the timetable proposed by the EU is feasible.
“To assist the UK industry, our key ask of the new Government is that it quickly establishes who the competent authority is who will demonstrate compliance and lead negotiations and discussions from a UK perspective to ensure there is no disruption to trade.
“We firmly believe that existing traceability requirements in Scotland and other parts of the UK will indicate compliance without adding burden to the primary producer or the processor.”
However, even with a traceability system in place, industry leaders said traceability requirements under the new EUDR are unclear, and there remains “many questions over what information is required.”
One meat industry group said it remains unclear whether traceability has to be completed per animal or per holding, for example.
QMS said it has raised issues concerning the EUDR to “a top priority.”
Lucy Ozanne, industry strategy manager at QMS, said: “QMS continues to work with stakeholders across the supply chain to ensure that there is no disruption to trade.
“In 2023, EU countries accounted for 73 per cent of red meat exports from Scotland which we continue to work with partners to develop further as we aim to make Scotland the choice for premium red meat globally”.
Some industry groups have claimed that the date the EUDR is due to be enforced could be delayed due to a lack of clarity from the EU commission on various issues raised by the sector.
The initial EUDR was conceived as operating through a traffic light system that would classify countries as having a high, medium or low risk of deforestation. Brussels has delayed this classification, and is instead designating every country as standard risk to give them more time to adapt to the anti-deforestation regulation.
A Scottish Government spokesperson said: “Whilst the EU has the right to regulate, we are engaging with the EU Commission to seek clarity on both implementation and compliance around these regulations. We are working with industry representatives and the UK Government on how best to support farmers and producers through these changes.”
