{"id":593662,"date":"2025-11-25T22:07:19","date_gmt":"2025-11-25T22:07:19","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/593662\/"},"modified":"2025-11-25T22:07:19","modified_gmt":"2025-11-25T22:07:19","slug":"european-unions-deforestation-delay-bad-news-for-canola","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/593662\/","title":{"rendered":"European Union\u2019s deforestation delay bad news for canola"},"content":{"rendered":"

SASKATOON \u2014 The fate of a regulation that could boost canola oil<\/a> demand in the European Union will be determined before the end of 2025.<\/p>\n

The European Council recently agreed to delay implementation of the EU Deforestation Regulation<\/a> (EUDR) for another year.<\/p>\n

The council will now start negotiations with the European Parliament to reach a final agreement on the regulation, which was due to come into force Dec. 30, 2025.<\/p>\n

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Why it Matters:<\/strong> The regulation has the potential to boost canola oil consumption in the EU because it penalizes palm oil.<\/p>\n

The council said the aim of the one-year delay is to simplify implementation of the regulation and allow operators, traders and authorities to adequately prepare.<\/p>\n

If its proposal is accepted by the EU Parliament, the provisions of the EUDR would apply on Dec. 30, 2026, for medium and large operators and June 30, 2026, for micro and small operators.<\/p>\n

The goal of the regulation is to ensure commodities such as cattle, cocoa, coffee, palm oil, rubber, soybeans, wood and their derived products have not caused deforestation or forest degradation.<\/p>\n

This would be the second time that the regulation has been delayed by one year, much to the chagrin of environmental groups.<\/p>\n

\u201cClaims by member states that \u2018tackling deforestation remains a priority\u2019 are a blatant distortion: they have just agreed to water down and delay the EUDR,\u201d Anke Schulmeister-Oldenhove, manager for forests at the World Wildlife Fund\u2019s<\/a> European policy office, said in a press release.<\/p>\n

\u201cWith this vote, the EUDR is very close to becoming a theoretical thinking exercise rather than a concrete step towards zero deforestation.\u201d<\/p>\n

The Malaysian Palm Oil Council (MPOC) welcomed the proposed delay but expressed lingering concerns about the regulation.<\/p>\n

\u201cMPOC reiterates that the Malaysian palm oil industry has worked tirelessly to transform itself in recent years, implementing robust sustainability frameworks and achieving measurable reductions in deforestation,\u201d the group said in a press release.<\/p>\n

\u201cDespite these efforts, the current EUDR framework contains numerous operational deficiencies, which fail to reward responsible leadership in sustainable practices.\u201d<\/p>\n

The EU is the third biggest export market for Malaysian palm oil, behind India and China. It imported 2.66 million tonnes of the product in 2023.<\/p>\n

Malaysia\u2019s palm oil producers say the EUDR would \u201csignificantly impact\u201d palm oil use in that market.<\/p>\n

Marlene Boersch, managing partner of Mercantile Consulting Venture, said the regulation would provide canola with a much-needed shot in the arm.<\/p>\n

\u201cI have no doubt that it would support the use of canola oil to some degree,\u201d she said.<\/p>\n

The proposed delay could not have come at a worse time with Canada shut out of the Chinese market and record rapeseed\/canola production in the Northern and Southern Hemispheres.<\/p>\n

\u201cWe\u2019re just thirsting for something positive,\u201d said Boersch.<\/p>\n

She speculates that vegetable oil users lobbied EU member states for the delay, and there appears to be more of a political appetite to entertain such suggestions these days.<\/p>\n

\u201cWe have lost some of the momentum to really follow through with some of these environmental things for budgetary reasons,\u201d said Boersch.<\/p>\n

The good news is there is still plenty of long-term optimism for canola oil<\/a> and other vegetable oils.<\/p>\n

Deutsche Landwirtschafts-Gesellschaft\u2019s Agrarticker reports that Oil World\u2019s managing director David Mielke had some encouraging words during his recent presentation at the Rapool conference.<\/p>\n

He noted that global consumption of vegetable oil exceeded production in 2023-24, leading to a reduction in global oil and fat stocks that is going to become even more pronounced in 2024-25, according to a translation of the Agrarticker article.<\/p>\n

And that trend is likely to continue.<\/p>\n

\u201cWe have to look ahead to the next five to 10 years,\u201d said Mielke.<\/p>\n

\u201cDuring this time, the markets are heading towards a structural production deficit of oils and fats.\u201d<\/p>\n

Boersch said there has also been some positive news on Canada\u2019s trade impasse with China following a couple of encouraging visits by federal and provincial government officials<\/a>.<\/p>\n

She hopes it is the beginning of a breakthrough on the tariff war between the two countries.<\/p>\n

\u201cThat would be very, very positive,\u201d she said.<\/p>\n

However, she noted that Canada would likely need to make the first gesture by making a small reduction in its tariff on Chinese electric vehicles<\/a>.<\/p>\n

It doesn\u2019t help Canada\u2019s cause that China recently started buying U.S. soybeans again<\/a>, despite having no real pressing need for the commodity. Those shipments could pick up once the United States and China finalize their trade agreement.<\/p>\n

It also doesn\u2019t help that Australia recently sent its first shipment of canola to China<\/a> in five years, meaning that Canada may have competition in that market going forward.<\/p>\n

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