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Implications of the EUDR for the Malaysian and Indonesian Palm Oil Industries upon Implementation
The EUDR addresses the significant role of agricultural production in global deforestation, particularly through imports of commodities like palm oil. Indonesia and Malaysia, the largest palm oil producers and exporters, will bear the brunt of these regulations. With the EUDR set to take effect in December 2024, both countries have begun reducing their palm oil exports to the EU in anticipation, aiming to mitigate the regulation's impact. The EUDR is not expected to disrupt the Indonesian and Malaysian palm oil industries at a macro level. However, adhering to its traceability and transparency requirements will challenge small-scale farmers, potentially affecting their access to the EU market and profitability.
Benjamin Lategan · 2024년 4월 25일
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