EUDR Exemption for Cowhide: Relief Amid Unresolved Issues

The EUDR—the EU Regulation on Deforestation—has long been a source of uncertainty in the leather industry. This makes a recent development all the more noteworthy: cowhide leather is set to be excluded from the scope of the regulation.

The reasoning is clear and hits the nail on the head: Leather is not considered a driver of deforestation, but rather a byproduct of the meat industry. At the same time, the leather value chain is largely decoupled from the meat market. Tanneries and brands have little economic influence over where and how cattle are raised. The leverage lies not in leather processing, but in agriculture.

In doing so, the EU acknowledges a reality that is often evident in practice: even when greater transparency is desired, it can only be enforced to a limited extent along the upstream supply chain. The decision is also understandable from a market perspective. If leather were regulated but finished leather products were not, an imbalance would arise without actually preventing deforestation.

What does this mean for the industry? Above all, it means a reduction in the burden. The direct requirement for full traceability is no longer in effect. But the fundamental question remains:

Where does the material come from—and under what conditions was it processed?

Regulation sets the framework. Responsibility goes beyond that. Those who take it seriously build transparent supply chains wherever they can exert influence—regardless of whether it is required by law or not.