July 4 (Reuters) - Cadbury chocolate maker Mondelez ( MDLZ )
is urging a one-year delay in the implementation of the
European Union's deforestation law, a senior company executive
said.
The company supports the EU Deforestation Regulation (EUDR)
in principle, Massimiliano Di Domenico, vice president of
corporate and government affairs for Europe said, but urged
policymakers to account for "on-the-ground realities."
Di Domenico was speaking at the European Parliament last
week and later posted his comments on LinkedIn.
In July last year, Reuters reported that Nestle,
Mars Wrigley, and Ferrero backed the law in a joint paper, while
urging Brussels to provide clearer guidance and support to help
companies meet the compliance deadline.
The proposed law, which aims to end 10% of global
deforestation fuelled by EU consumption, requires companies and
traders importing soy, beef, cocoa, coffee and related products
to prove their supply chains do not contribute to the
destruction of the world's forests, or face hefty fines.
Di Domenico said the cocoa sector is "under huge pressure"
due to soaring prices, declining production, and digital
infrastructure gaps in origin countries which could affect
compliance and disrupt supply chains.
"That's why we are respectfully, transparently and
responsibly calling for a 12-month delay - not to dilute
ambition, but to enable practical, inclusive, and effective
implementation," Di Domenico said in his post.
The EU has already delayed its launch by a year to December
2025, following complaints from trading partners including
Brazil and the U.S., and cut back reporting rules after industry
criticism.