What Does “Deforestation-Free” Really Mean? How Businesses Can Prove It Under the EUDR

When the European Union’s Regulation on Deforestation-Free Products (EUDR) was passed, it signaled more than a policy shift—it marked a fundamental change in how global supply chains are expected to operate. No longer will sustainability claims be taken at face value. Under the EUDR, proof is now mandatory.

For companies sourcing, producing, or exporting key commodities like cocoa, coffee, soy, palm oil, rubber, and wood, the implications are significant. The regulation demands end-to-end traceability, rigorous due diligence, and clear evidence that these products do not come from recently deforested land or contribute to forest degradation.

So, what does “proof” actually look like?

The EUDR Standard: Beyond Compliance Checklists

At its core, the EUDR requires companies to demonstrate—with data—that every product entering or leaving the EU market is:

• Deforestation-free (no deforestation or forest degradation since 31 December 2020)
  
• Legally produced in accordance with the laws of the country of origin
  
• Fully traceable, with clear geolocation data for all production plots
  

This means having a documented supply chain trail that shows exactly where a product came from, who produced it, when it was harvested, and how it complies with both local laws and EU deforestation criteria.

For many businesses, especially those dealing with thousands of smallholder suppliers, this level of transparency presents a serious challenge.

The Complexity of “Proof” on the Ground

In practice, “proof” under the EUDR is a multi-layered effort:

• Farm-level mapping: Companies must collect the exact GPS coordinates of all farm plots contributing to a given product.
  
• Time-stamped land data: They must verify that no deforestation occurred after the cut-off date—backed by satellite imagery or third-party verification tools.
  
• Due diligence documentation: Risk assessments must be conducted and mitigation plans implemented where risk is identified.
  
• Chain-of-custody records: Products must be tracked as they move through processors, aggregators, exporters, and importers.
  

And this proof has to be ready for submission via the EU’s newly launched EUDR Information System.

Digital Infrastructure Is No Longer Optional

Manual processes and siloed databases won’t cut it. Companies need systems that can scale across countries, adapt to local realities, and update in real time.

That’s where Mergdata comes in.

Mergdata is a supply chain intelligence platform built to meet the demands of modern agricultural trade. Designed for food companies, cooperatives, traders, and governments, it enables businesses to:

• Register and profile smallholder farmers digitally
  
• Map and monitor farm plots with geolocation precision
  
• Trace commodities from source to shelf
  
• Use satellite imagery to track forest cover changes and detect deforestation
  
• Automate reports for EUDR compliance and certification
  

So far, Mergdata has:

• Digitized 2.2 million farmers across 50+ countries
  
• Analyzed 707,000+ farm plots for deforestation compliance
  
• Verified that 93% of those plots are EUDR compliant
  
• Traced 17,000 MT of commodities through our traceability system
  
• Monitored over 280 million acres of forest for deforestation risks
  

With tools like Terra MD for remote sensing, Collect MD for on-the-ground data gathering, and Darli AI for multilingual farmer engagement, Mergdata empowers companies to turn compliance into operational efficiency—and competitive advantage.

Turning Obligation Into Opportunity

The EUDR isn’t just about risk—it’s about opportunity. It forces the industry to do what’s long been overdue: build truly transparent, ethical, and resilient supply chains. Businesses that act now can lead the way.

If you’re a food trader, agribusiness, or sustainability team grappling with how to meet these new requirements, we’re here to help.

Mergdata is already helping partners across the globe achieve EUDR compliance with clarity and confidence.

👉 Let’s talk about what it’ll take to prove your products are deforestation-free