What the EUDR means for the leather industry
The EUDR, the new EU regulation against deforestation, has been widely discussed in recent months. The term now regularly appears in specialist articles and industry discussions, often accompanied by a certain degree of apprehension. It is clear that the EUDR will bring profound changes to many sectors of the agricultural and raw materials industry – including the leather industry. But what exactly does it entail? And what does that specifically mean for manufacturers and retailers of leather products?
A new transparency obligation
The EUDR – short for EU Deforestation-Free Products Regulation – came into force in June 2023 but will only become legally binding from the end of 2025. From that point, only products demonstrably not linked to deforestation or forest degradation will be permitted on the European market. The regulation applies to seven raw materials, including cattle, and therefore explicitly also to leather. This is because every piece of leather ultimately originates from an animal whose life began somewhere: on a pasture, in a barn, or on an area that must not have been cleared or degraded after the cut-off date of December 31, 2020.
Traceability back to the pasture
The significance of this is noteworthy. Going forward, for every bovine product – and consequently for every raw hide – the animal's place of origin must be fully traceable. This traceability extends beyond country or region, requiring precise geographical coordinates of the establishments where the animal was raised. These data will be integrated into a central EU system, forming the foundation for a mandatory Due Diligence Statement that all companies introducing bovine or leather products to the EU market must submit.
This brings about one primary change for the leather industry: transparency becomes mandatory. The origin of hides, which until now was often only known through traders or collection points, must in future be traceable down to the operational level. This presents an enormous challenge for globally traded hides from countries with complex supply chains.
Challenges and Opportunities
The EUDR compels companies to rethink their supply chains. In the future, those who process or distribute leather will no longer be able to simply declare 'cattle from South America'. Clear proofs of origin, documentation, and coordinates are required, along with a system to securely manage this information.
While it may initially sound like bureaucracy, it simultaneously presents a significant opportunity: genuine traceability. For manufacturers already collaborating with regional or organically managed operations, the EUDR will not be a threat; instead, it offers a competitive advantage. Those who already operate transparently, understand their supply chains, and commit to sustainable, deforestation-free agriculture will find it easier to meet the new requirements and effectively communicate their adherence.
What companies can do now
Time is still available: The regulation becomes binding for large companies from December 30, 2025, and for small businesses from June 30, 2026. However, anyone wishing to be prepared by then should start now. The first step is to map your supply chain: Where do the hides originate? Who supplies them, and through how many intermediaries? What information is already available, and what is still missing? Subsequently, it is crucial to engage with suppliers – many will themselves need to learn how to provide geocoordinates or proof of animal husbandry.
At the same time, businesses should adapt their internal processes: defining clear responsibilities, systematically capturing and archiving data, and reviewing contracts. They should also leverage this opportunity to orient their procurement towards long-term sustainability: making it more regional, transparent, and resilient.
A step towards responsibility
The EUDR is not a simple regulation. It demands a shift in mindset, investment, and collaboration across the entire value chain. Yet, it reflects a stance that has long preoccupied the leather industry: the responsibility for what we produce and sell.
If leather in the future is to be not only aesthetically pleasing, robust, and durable, but also verifiably deforestation-free, then this represents significant progress – for forests, for transparency in supply chains, and for all stakeholders who already prioritize traceable, responsibly sourced materials.
We have been dedicated for years to establishing regional, transparent leather supply chains with direct links to agriculture, tanning, and craftsmanship. Should you wish to understand what the EUDR signifies for your enterprise, how to analyze your supply chain, and progressively adapt it to the new requirements, please reach out to us. We provide support in comprehending, enhancing, and sustainably designing your operational structures.