The European Union Deforestation Regulation - EUDR - is entering a decisive stage for the wood industry. Following the latest amendments and simplification measures adopted at EU level, the rules are becoming clearer, but compliance will still represent an important operational challenge for many companies active in forestry, timber trading and wood processing.

🌲 For SMEs involved in logging, timber trading, sawmilling, furniture production, wood-based panels, pallets and other wood products, EUDR primarily means stronger timber traceability and the need to demonstrate that wood does not originate from deforestation or forest degradation.

What Is EUDR and What Is Changing?

EUDR - Regulation (EU) 2023/1115 - covers seven main commodity categories, including wood, together with a wide range of derived wood products.

Products placed on the EU market or exported from the European Union must generally be:

✓ deforestation-free and compliant with the forest degradation requirements applicable to wood;
✓ produced in accordance with the relevant legislation of the country of production;
✓ covered, where required, by due diligence and traceability procedures.

The amendments adopted at the end of 2025 simplified some of the initial obligations. One important change is that the responsibility for submitting the due diligence statement is concentrated mainly on the operator first placing the relevant product on the EU market.

Companies further downstream in the supply chain benefit from simpler procedures, reducing the number of declarations and part of the administrative burden.

New EUDR Deadlines for the Wood Industry

For medium-sized and large companies, the new EUDR rules apply from 30 December 2026.

For most micro and small enterprises, the deadline is 30 June 2027.

An important exception applies to micro and small enterprises that were already covered by the former EU Timber Regulation - EUTR. For these companies, the new requirements apply from 30 December 2026.

For wood industry companies, these deadlines create additional preparation time, but they should not be interpreted as a reason to delay compliance projects.

Romania Is Classified as a Low-Risk Country

One important advantage for Romanian wood industry companies is that Romania is classified as a low-risk country under the EUDR benchmarking system.

🌳 This classification can allow simplified due diligence procedures for wood originating in Romania, provided the conditions established by the regulation are fulfilled.

For certain micro or small primary operators producing their own wood in a low-risk country, the amended rules also introduce the possibility of using a simplified one-time declaration.

In specific situations, these operators may also use the address of a plot instead of full geolocation coordinates where the address sufficiently identifies the place of production.

Advantages of EUDR for SMEs in the Wood Industry

1. Better traceability can improve access to major customers

Companies that can quickly demonstrate the legal and deforestation-free origin of timber may become more attractive suppliers for large manufacturers, retailers, distributors and multinational wood industry groups.

For a well-prepared SME, EUDR compliance may therefore become not only a regulatory obligation but also a commercial advantage.

2. Reduced competition from wood with uncertain origin

The regulation may restrict access to the EU market for timber and wood products where origin and supply-chain information cannot be adequately demonstrated.

This may benefit European wood producers and processors that already operate with reliable timber traceability systems.

3. Simplified procedures for smaller companies

The amended rules reduce part of the administrative burden originally expected for smaller operators and for companies positioned further downstream in the wood supply chain.

4. Potentially higher commercial value for traceable timber

🪵 In the medium term, timber and wood products supported by clear traceability, complete documentation and verifiable origin may achieve stronger market positioning, particularly when supplying major European buyers.

Disadvantages and Compliance Costs for SMEs

1. Additional administration and digitalisation costs

SMEs will need to manage more information relating to timber origin, suppliers, traceability documents and EUDR references.

For companies that still depend heavily on paper documents or poorly integrated IT systems, compliance may require additional investment in software, internal procedures and employee training.

2. Greater pressure on small suppliers

A furniture producer or sawmill can only maintain an efficient compliance process if the necessary information is also supplied by upstream partners.

This can become difficult when wood is purchased from many small suppliers with different levels of digitalisation and administrative capacity.

3. Risk of delayed or blocked timber lots

If information regarding the origin of wood is incomplete, the relevant timber or wood product may become more difficult to place on the European market.

Supplier verification will therefore become an increasingly important part of wood procurement strategies.

4. Possible increase in raw material costs

EUDR compliance costs will not disappear. Part of these costs may eventually be reflected in the price of logs, lumber, sawn timber and intermediate wood products.

This may add further pressure on margins in a market already affected by relatively high raw material costs.

Current developments in the European wood market, timber prices, demand and industry trends illustrate why the relationship between wood prices and processing margins is already a major concern for sawmills and wood processors.

Who Could Benefit and Who Could Face Higher Risks?

EUDR may create an increasingly clear distinction between companies that have invested in traceability and those that continue to rely on supply chains that are difficult to verify.

📊 SMEs with stable suppliers, digital systems and clear documentation may obtain a competitive advantage.

Companies that depend heavily on occasional suppliers or on wood imports from difficult-to-verify sources may instead face higher administrative costs and longer procurement processes.

Potential Impact on Wood Prices and International Timber Trade

EUDR is not simply an environmental regulation. For the wood industry, it may also become an important economic factor.

Over the medium term, the regulation could influence:

📈 wood prices, timber prices and lumber prices;
🪵 supplier selection and wood procurement;
🌎 timber imports and wood exports;
📦 logistics and documentation costs;
🌳 demand for certified and traceable wood.

Importers may increasingly prefer suppliers from low-risk countries or companies capable of providing the required compliance information quickly.

This can gradually change international wood trade flows and the competitive position of different timber sourcing regions.

What Should a Wood Industry SME Do Now?

Companies should not wait until the final months before the applicable deadline.

A minimum EUDR preparation programme should include:

✓ identifying wood products and customs codes covered by EUDR;
✓ classifying suppliers according to country and risk level;
✓ checking available information regarding timber origin;
✓ integrating EUDR references into ERP or management systems;
✓ assigning clear internal compliance responsibilities;
✓ testing the information flow between supplier, processor and customer.

For SMEs, the objective should be to integrate EUDR into the normal purchasing and sales process rather than treating compliance as a completely separate administrative procedure.

EUDR: Additional Cost or Competitive Advantage?

For many SMEs in the wood industry, the answer will depend on their current level of digitalisation and timber traceability.

Companies that must build data collection and verification systems from the beginning will initially experience EUDR primarily as an additional administrative cost.

Companies that already operate with well-documented supply chains may instead turn compliance into a commercial argument when negotiating with buyers.

In the longer term, a more transparent European wood market may favour suppliers capable of demonstrating timber origin, legality and traceability quickly and efficiently.

Wood Trade and Supplier Selection Will Become More Data-Driven

As traceability becomes more important, companies will increasingly need access to a broader supplier base and more detailed market information.

Through the WoodBusinessPortal.com international timber offers and demands section, companies can monitor commercial opportunities for timber, sawn wood, hardwood, softwood and other wood products from multiple markets.

🪵 This can be particularly relevant for companies seeking alternative timber suppliers or customers as EUDR gradually changes traditional wood sourcing patterns.

Follow the Impact of EUDR on the International Wood Market

On WoodBusinessPortal.com, professionals can follow developments affecting the global wood industry, including timber prices, lumber prices, production, imports, exports, demand and regulatory changes.

📊 Monitor wood prices, timber imports, exports, statistics, forecasts and the regulatory changes affecting the wood industry.

🪵 Find suppliers and customers for logs, timber, lumber, pallets, pellets, panels and other wood products.

🌎 Use wood market intelligence to anticipate EUDR-driven changes in supply chains and international trade flows.

WoodBusinessPortal.com - market information, international B2B opportunities and business intelligence for the wood industry.

Sources

EUDR legislation, amendments and operator obligations: EUR-Lex

EUDR implementation, deadlines and simplification measures: European Commission

Information on the amendments adopted by the European Parliament: European Parliament

Information on the agreement concerning simplified obligations and implementation deadlines: Council of the European Union