What the EUDR means for the leather industry
It's been the talk of the town for the past few months: the EUDR, the new EU regulation against deforestation. The term is now regularly used in specialist articles and industry circles, usually accompanied by a certain furrowing of the brow. One thing is clear: the EUDR will bring far-reaching changes to many areas of the agricultural and raw materials sectors - including the leather industry. But what exactly is behind it? And what does this mean in concrete terms for manufacturers and retailers of leather products?
A new transparency obligation
The EUDR – which stands for EU Deforestation-Free Products Regulation – came into force in June 2023, but won't actually be mandatory until the end of 2025. From then on, only products that are demonstrably not linked to deforestation or forest degradation will be allowed on the European market. The regulation applies to seven commodities, including cattle, and therefore explicitly also to leather. After all, every piece of leather ultimately comes from an animal whose life began somewhere: in a pasture, in a stable, on an area that must not have been deforested or degraded after the cut-off date of December 31, 2020.
Traceability right back to the pasture
What this means is pretty amazing. In the future, for every beef product – and therefore every raw hide – it needs to be traceable where the animal lived. Not just in the country or region, but precisely using the geographical coordinates of the farms where it was located. This data is fed into a central EU system and forms the basis for a so-called Due Diligence Statement, which every company must submit that brings beef or leather goods onto the EU market.
This mainly changes one thing for the leather industry: transparency becomes mandatory. In the future, the origin of the hides, which until now was often only known through dealers or collection points, must be traceable down to the company level. This is an enormous challenge for globally traded hides from countries with complex supply chains.
Challenges and Opportunities
The EUDR is pushing companies to rethink their supply chains. If you're processing or selling leather, you won't be able to just say 'Beef from South America' anymore. You'll need clear proof of origin, documents, coordinates, and a secure system to manage all that information.
What might sound like bureaucracy at first glance actually opens up a great opportunity: real traceability. For manufacturers who are already working with regional or organic farms, the EUDR won't be a threat. On the contrary, it creates a competitive advantage. Anyone who already operates transparently, knows their suppliers, and relies on intact, deforestation-free agriculture will find it easier to meet the new requirements and communicate that, too.
What companies can do now
There's still some time left: The regulation becomes binding for large companies from December 30, 2025, and for small businesses from June 30, 2026. But if you want to be prepared by then, you should start now. The first step is to map your own supply chain: Where do the hides come from? Who supplies them, and through how many intermediate stages? What information is already available, and what is still missing? Then it's time to talk to suppliers – many of whom will first have to learn how to provide geocoordinates or proof of husbandry themselves.
At the same time, companies should adapt their internal processes: define clear responsibilities, systematically record and archive data, and review contracts. And they should take the opportunity to make their procurement more sustainable in the long term: more regional, more transparent, more resilient.
Taking a step towards responsibility
The EUDR isn't a simple law. It requires a change of mindset, investment, and collaboration across the entire value chain. But it expresses an attitude that the leather industry has been concerned with for a long time: responsibility for what we produce and sell.
If leather in the future should not only be beautiful, robust and durable, but also verifiably deforestation-free, then that is progress - for the forests, for transparency in trade and for all those who already value traceable, responsible origins.
We've been working for years to build regional, transparent leather supply chains with direct links to agriculture, tanning, and craftsmanship. If you'd like to understand what the EUDR means for your company, how to analyze your supply chain, and how to adapt it step by step to the new requirements, get in touch! We'll help you understand, improve, and sustainably shape structures.