Cattle Industry Chief Warns EU Deforestation Rules Could Stifle Global Trade

A Black Angus breed of cow at "Old Bombine" in Meandarra, Western Queensland in Australia on Jan. 18, 2021. Lisa Maree Williams/Getty Images

BRISBANE, Australia—Peter Hall, the head of Queensland’s cattle industry, has warned that new EU deforestation provisions could set a dangerous precedent for global trade.

According to the government website, the European Union Deforestation Regulation (EUDR) requires exporters to prove their products are deforestation-free.

From Dec. 30, importers face fines of up to 4 percent of their global turnover for non-compliance, which could compel companies to impose standards beyond the EUDR’s requirements.

The move is aimed at reducing the consumption of products that “contribute to deforestation and forest degradation in the EU and globally,” as well as reducing carbon emissions by at least 32 million metric tonnes per year.

Yet Hall, president of the cattle division at AgForce—the peak body representing Queensland farmers—argues the regulation would be a logistical and financial challenge for farmers.

“Our practices are already regulated under the Vegetation Management Act, which limits land clearing,” Hall told industry peers at the AgForce conference in Brisbane on Oct. 1.

The EUDR could also create more non-tariff trade barriers across the world, and may shut out Australian exporters from key markets.

Hall also said there was no clear global definition of “deforestation,” which could also include sustainable land used for grazing.

The president said commodities like beef were also subject to the new rules, and farmers had to provide geolocation data to prove no grazing land had been cleared—an extra regulatory burden, Hall said.

“It’s not just us, the U.S., and Canada have already called for a delay in the regulation’s implementation,” said Hall.

Industry Beset By Multiple Challenges

The EUDR adds to the long list of challenges facing the agricultural sector.

In September, Australian farmers staged a major rally outside Parliament House in Canberra.

The main focus of the rally was dissatisfaction with the Labor government’s 2028 planned phase-out of live sheep exports.

However, other issues were also raised including the resumption of water buybacks under the Murray-Darling Basin Plan, increased biosecurity charges, rises in superannuation contributions, and the impact of energy developments, particularly renewables.

Concerns Continue Over Live Export Ban

Hall said the live export sector played a crucial role in providing income for thousands of Australian farmers.

“Australia has some of the highest animal welfare standards in the world. The Export Supply Chain Assurance System (ESCAS), introduced in 2011, ensures that animals are treated humanely throughout their journey, from transportation to slaughter, by adhering to strict welfare requirements at each stage,” he said.

The phasing out of live sheep exports by sea will conclude by May 1, 2028.

Currently, trade can continue until that date without any additional restrictions such as caps or quotas. The prohibition will not apply to other livestock export industries, such as cattle, nor will it apply to live sheep export by air.

Opposition Leader Peter Dutton and Shadow Minister for Agriculture David Littleproud have already announced that they would reverse the ban if elected.

Hall says countries like Indonesia and Vietnam rely heavily on Australian cattle to meet their growing food demands.

“If Australia withdraws from these markets, those countries may turn to less regulated suppliers, where animal welfare standards are far lower. By remaining in the market, Australia has the unique ability to influence and raise global welfare standards,” he added.

“Any policy shift, perceived as catering to activist groups rather than grounded realities, risks damaging Australia’s reputation as a dependable food exporter,” Hall warned.

Carbon and Methane Reshaping the Cattle Industry

Hall highlighted that the debate around carbon and methane emissions has now become central to the way the cattle industry operates.

While the carbon market presents opportunities, it also brings significant risks, particularly for producers.

The complexity of carbon accounting, land competition, and increasing compliance costs mean the industry faces considerable challenges ahead.

“The rise of the carbon credit market has caused property prices to surge, as land valued for grazing is now highly sought after for carbon credits or renewable energy projects. This trend has made it more difficult for new entrants to access land and has negatively impacted profitability for existing producers.

“As land prices climb, industry players must navigate these economic pressures alongside new regulatory demands,” said Hall.