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Nestle, Ferrero warn EU against further delays to

deforestation

law

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Law aims to curb global deforestation linked to EU

consumption

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EU says delay necessary to address concerns about IT

readiness

By Virginia Furness

LONDON, Oct 3 (Reuters) - Major agri-food companies

including Nestle, Ferrero and Olam Agri have warned

that European Union delays to its anti-deforestation law are

endangering forests worldwide.

The EU last month proposed delaying the launch of its

anti-deforestation law for a second time, citing concerns about

the readiness of information-technology systems needed to

support the law.

The delay could postpone the ban on imports of commodities

such as palm oil linked to forest destruction for another year.

The law faces major opposition from industry and EU trade

partners such as the United States and Brazil. EU Commissioner

Jessika Roswall said last week the delay was not linked to U.S.

concerns about the policy.

In a letter to Roswall - a copy of which was sent to Reuters

- the companies, which operate in the cocoa, dairy, rubber, wood

and other agri-food sectors, said that clear rules were

essential for EU competitiveness and that they had already been

investing in and preparing to comply "in good faith".

"We remain on track to achieve full compliance with the EUDR

obligations by 31 December 2025," the letter dated October 2

said. "The proposed delay puts at risk the preservation of

forests worldwide, will accelerate climate change impacts, and

undermines trust in Europe's regulatory commitments."

Contrary to the EU's aim of simplifying rules for business,

any changes at this stage would introduce uncertainty, annoy

shareholders and risk the rules being watered down further, the

companies said.

Francesco Tramontin, vice president, institutional affairs

at Ferrero Group, said that having greater transparency over

supply chains is essential for managing risks.

The EU deforestation law was due to take effect on December

30, and will require operators selling goods including soy, beef

and palm oil into EU markets to provide proof their products did

not cause deforestation.

(Reporting by Virginia Furness; Editing by Emelia

Sithole-Matarise)