How EUDR compliance is reshaping origination, traceability costs, and segregated flows.
EUDR compliance has now been in force for one full crop year, and the structural impact on the palm oil trade is becoming visible. Segregated flows now command a 4 to 6 percent premium over mass-balance product, up from 2 to 3 percent in 2024.
Origination is consolidating. Smaller mills without traceability infrastructure are being squeezed out of European supply chains, and we are seeing emerging-market resale flows into Africa and the Middle East absorbing non-compliant tonnes.
For European buyers, our advice remains: lock in segregated certified volumes 6 to 12 months ahead and avoid the spot mass-balance market unless absolutely necessary.