EU's Deforestation Regulation Decision Could Impact Leather Industry and Fashion Supply Chains
The European Commission is set to decide on June 1 whether to exclude leather from its Deforestation Regulation, which aims to prevent products contributing to deforestation from entering the EU market. The regulation initially included leather, requiring traceability to the farm level, a challenging task given the complexity of cattle supply chains. Brazil, a major cattle producer, faces significant traceability challenges due to the movement of cattle between farms. The leather industry could face substantial compliance costs, but the environmental benefits are potentially significant. The decision follows lobbying efforts to exclude leather, raising concerns among environmentalists and industry stakeholders. 
