EUDR compliance: A concern for all cattle producers

New European Union Deforestation Regulations (EUDR) are set to deliver a potential crisis for Australia’s hide industry, with significant implications for all Australian cattle producers and processors. 

Micaela Topper, Executive Manager at AI Topper (a major processor and exporter of Australian hides, skins and finished leather) said she was concerned many hides would be ineligible for export when the EUDR commences on 31 December. 

“The EU is our industry’s highest-value market but, at the moment, it’s likely that many of the hides we are now purchasing from processors will be ineligible for EU export in 2026. 

“This is because the majority of Australia’s cattle producers still don’t fully understand why they need to opt-in and share their data via the new LPA Geolocation tool, even if they aren’t EUCAS-accredited.”

Impact extends well beyond the EU  

Micaela said that more than half of Australia’s premium (wetblue) hides are exported to the Italian market, making us Italy’s fifth largest source of leather. 

"Europe is a large and profitable market for Australian leather and hides, but many producers wouldn’t know that it’s not the only one impacted by the EUDR requirements. 

“Australia sells a lot of semi-processed (salted) hides into the Chinese and wider Asian market, much of which could potentially be tanned and then resold into the European market as finished leather. 

“The supply chain for that finished leather will then also need to demonstrate compliance with the new regulations, so the full impact won’t just be felt in our direct EU exports – it could also affect the viability of our exports to other markets.

Impact on producers and processors  

“I think many people believe that if they aren’t one of Australia’s EUCAS-accredited producers, then the new EUDR requirements won’t affect them but that’s simply not the case,” Micaela said.  

“All cattle processed in Australia needs to be EU-compliant and accompanied by the lifetime geolocations required by EU importers, otherwise these hides will potentially be worthless. 

While this is a critical issue for the leather and hides industry, it was also essential to ensuring processors can maintain a commercial market for their hides as by-product of processing.  

“If we reach a point where the value of our hides market becomes so depleted that processors can’t sell their hides, they’ll need to find another way to dispose of them,” she said. “Most likely, they’d have to bury them which then presents a different sustainability issue for industry.” 

Potentially, this could also lead to processors charging disposal fees or paying producers slightly less per head to mitigate that disposal cost. 

The solution 

Micaela said it was critical that all Australian cattle producers understand the importance of EU-compliance in securing the supply chain for hides and other cattle by-products. 

“Many countries are facing the same challenge of complying with the EUDR and we’re fortunate that Australia now has the LPA Geolocation tool which makes it easy for producers to share their geolocation data. 

"I’d urge all producers to opt-in to use the tool as soon as possible to ensure our hides export market remains secure in 2026. 

“The required geolocation data is shared securely with feedlots and processors via the National Livestock Identification System (NLIS), enabling industry to maintain EU access. 

Future value of geolocation sharing  

Beyond the EUDR, Micaela said it was becoming a wider issue in the leathergoods market with many large international brands already putting a focus on deforestation credentials in their supply chains.  

“With this growing demand and the expansion of greenwashing laws globally, I think industry will eventually understand the value of being able to easily share those lifetime traceability credentials can extend far beyond compliance with the EUDR requirements.”