The German timber sector faces substantial financial and operational challenges due to the upcoming EU Deforestation Regulation (EUDR). According to a survey conducted by the German Timber Industry Association (HDH) and announced on September 12, the introduction of the EUDR is expected to cost companies around \u20ac1.8 billion. On top of this, ongoing annual expenses, such as for additional personnel and software to manage documentation, could reach \u20ac1.2 billion.<\/p>\n
HDH warns that more than half of surveyed companies may not comply with the EUDR by the December 31, 2025, deadline. Almost two-thirds of small and medium-sized enterprises (SMEs) report feeling unprepared or uncertain about meeting the requirements by January 1, 2026. HDH President Johannes Schw\u00f6rer highlighted the risk of severe disruptions to the supply chain, which could effectively halt the use of wood products if companies fail to demonstrate compliance.<\/p>\n
The survey included over 400 companies across the timber supply chain, ranging from micro-enterprises with fewer than 50 employees to large firms. Costs were extrapolated based on company size and number of suppliers, reflecting the higher burden larger companies face.<\/p>\n
The HDH emphasizes that these costs are limited to the German timber sector alone, although other industries relying on upstream supply chains will likely face similar administrative burdens. Schw\u00f6rer criticizes the regulation as unnecessary within the EU, pointing out that there is no deforestation within Germany or most other EU countries. Effective forest monitoring systems already exist, he noted, urging policymakers to introduce a \u201czero-risk\u201d category for countries where deforestation is virtually nonexistent.<\/p>\n
The EUDR requires companies to verify that no deforestation has occurred for products including wood, soy, rubber, coffee, and cocoa. According to the survey, additional costs are primarily driven by personnel, software solutions, and the need to exchange data with suppliers and customers.<\/p>\n
HDH and its members are calling for adjustments to the regulation. Schw\u00f6rer explained that Europe already has unbureaucratic, effective measures such as sustainability certifications and satellite monitoring. \u201cA zero-risk category would allow companies sourcing from low-risk regions to avoid unnecessary paperwork,\u201d he added.<\/p>\n
Support for a zero-risk exemption has also come from German political leaders. Chancellor Friedrich Merz (CDU) requested that the European Commission introduce such a category, while Agriculture Minister Alois Rainer (CSU) proposed delaying corporate obligations by one year to ensure a practical and legally sound implementation.<\/p>\n
The regulation\u2019s deadline, now extended by a year, requires companies to document from December 30 that their products do not harm forests. Nearly two-thirds of German timber companies are either unprepared or uncertain about meeting these obligations, raising concerns that non-compliant suppliers could be excluded from the market, creating further disruption and legal exposure for buyers.<\/p>\n
Environmental groups argue that critics exaggerate the burden of the EUDR. They maintain that European agricultural and forestry companies already possess the necessary information, and that a zero-risk category could weaken forest protection and destabilize trade. Some major companies, including Tchibo, Nestl\u00e9, and Danone, continue to advocate for timely implementation by the end of the year.<\/p>","protected":false},"excerpt":{"rendered":"","protected":false},"author":1,"featured_media":50587,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[5204],"tags":[5813,3302,4345],"class_list":["post-96848","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-daily-news","tag-eudr","tag-germany","tag-timber-companies","topic-forestry","topic-lumber","topic-pulp-paper","topic-sawmilling","topic-wood-construction","topic-wood-products","area-europe","area-global"],"acf":[],"yoast_head":"\n