The German wood industry is bracing for costs of €1.8 billion to comply with the EU Deforestation Regulation (EUDR), with ongoing annual expenses estimated at €1.2 billion, according to a survey by the German Wood Industry Association (HDH). The regulation, effective from January 2026, requires companies to prove that wood products are free from links to deforestation.
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The survey, which polled more than 400 firms across the supply chain, revealed that over half of businesses, and nearly two-thirds of SMEs, expect to miss the compliance deadline. Only 39% believe they will be ready by year-end.
HDH president Johannes Schwörer warned that a "low level of preparedness could paralyse the entire supply chain," citing missing data from upstream suppliers as a major threat to production and employment.
The largest costs stem from hiring additional personnel for compliance, alongside software and data exchange investments. Schwörer criticised the regulation as excessive bureaucracy for countries like Germany, where deforestation is minimal, and called for a "zero-risk category" to ease reporting for low-risk wood.
The HDH cautioned that without urgent adjustments, the EUDR could disrupt supply chains and impact the wider European wood sector.
Source: www.globalwood.org
