December in review: Action on deforestation, EU-Mercosur deal achieved, Trump’s tariff plans

This month, the EU agreed to delay the European Deforestation Regulation (EUDR), a move that was met with heavy criticism from environmentalists.

Meanwhile, European Commission president Ursula von der Leyen managed to achieve the EU-Mercosur deal, after almost 25 years of negotiations. 

We also spoke with experts about the prospect of new international tariffs under the Trump administration and how this could impact the F&B industry globally. 

Here, we recap the most significant stories of the month to ensure you stay informed about key F&B industry developments and insights. 

“No more attacks on EUDR”: NGOs condemn deforestation law delay as EU reaches agreement
The European Parliament reached a provisional agreement to postpone the EUDR by one year to ensure proper implementation amid strong opposition from countries like Indonesia, Brazil and Malaysia, as well as civil society organizations. Policymakers also agreed to scrap amendments proposed by the European People’s Party (EPP), such as including a new “no-risk” category, under which several countries would face significantly less stringent requirements or be exempt.

European ministers achieve controversial EU-Mercosur deal in defiance of industry demands
EU and Mercosur nation representatives finalized the long-debated trade deal in Uruguay.European Commission president Ursula von der Leyen announced that the controversial trade agreement with the Mercosur bloc, which was 25 years in the making, was achieved. Talks concluded at a final summit in Uruguay. She described the deal as a political necessity and economic opportunity. The deal joins EU nations with the Mercosur countries of South America. If formally approved by all EU countries, the agreement will open up a trading bloc comprising almost 800 million people and 25% of global GDP. Tariffs and other trade barriers will be reduced, and the export of goods will become easier.

Trump trade tariffs: How will international levies impact the F&B industry?
As President-elect Donald Trump’s inauguration approaches, we spoke to analysts about their predictions, particularly regarding future trade tariffs and international levies. Experts from RaboResearch Food & Agribusiness and Oghma Partners discussed potential countermeasures from other countries, rising business costs, and trade war strategies that might be looming in 2025.

Southeast Asian food prices to spike due to extreme weather and energy transition, flags Oxford Economics report
Food prices in Southeast Asia could increase by at least 30% and up to 59% due to extreme weather events coupled with the costs of transitioning to a low-carbon economy by 2050, a 2024 Oxford Economics report found. The analysis showed a 1% increase in the average temperature in the ASEAN region historically spikes food producer prices by 1-2% across Thailand, Vietnam, Malaysia, Indonesia and the Philippines. We spoke to Thang Nguyen-Quoc, Ph.D., lead economist at Oxford Economics Asia, to learn more.

One Bio nets US$27M to commercialize agricultural waste conversion technology
US-based biotech company One Bio raised US$27 million in a Series A round to commercialize its technology that transforms agricultural waste into odorless, colorless and tasteless fibers. F&B manufacturers can use these short-chain molecules in cereals, plant milks and sparkling water. The process starts when a metal catalyst and an oxidizing agent react and produce reactive radical species that “chop up” polysaccharides into oligosaccharides.

UK health officials advance reforms to ban fast food and takeaway outlets from targeting children
ofi is employing a number of new methods to tackle entrenched problems in the coffee supply chain.Local authorities in England announced they could ban new hot food takeaways and fast food outlets from targeting children in areas close to where they learn and play, as part of government obesity-related reforms. Chief medical officer, professor Chris Whitty, published a report outlining a broad range of health opportunities and challenges for city populations. It flagged a heavy concentration of fast food outlets concentrating on a limited range of products high in fat, sugar and salt, a high density of advertising of unhealthy foods and limited shopping opportunities.

The future of coffee: ofi tackles income gaps amid “perennial” economic and sustainability woes
We sat down with Jeremy Dufour, head of Sustainability Execution, Coffee at ofi, to discuss the company’s latest coffee impact report, and the “perennial challenges” posed by climate change, inflationary pressures and economic hardship. These, he underscored, are making it increasingly difficult for coffee farmers to afford a decent standard of living. 

European Commission allocates €132M to promote sustainable agri-food
The European Commission announced it will allocate €132 million (US$138 million) in 2025 to co-fund promotion activities for sustainable and high-quality EU agri-food products in the internal market and worldwide. The 2025 promotion policy work program adopted by the EC is designed to develop new market opportunities for EU farmers and the wider EU food industry and help them secure their existing business.

Cargill marketing manager: Answering Nutri-Score labeling demands with bakery reformulations
We sat down with Ellie van der Burg, Cargill’s Bakery marketing manager, to discuss how the corporation is helping customers cater to the Nutri-Score labeling system, which gives consumers dietary information. Cargill is creating new formulations that meet these demands while regaining taste and quality appeal. 

Dairy giants FrieslandCampina and Milcobel announce intention to merge
Dutch dairy cooperative FrieslandCampina and Belgian heavyweight Milcobel announced plans to merge to create “one international, future-oriented organization.” The proposed merger is subject to approval by FrieslandCampina’s members’ council, Milcobel’s “extraordinary meeting of shareholders,” and antitrust authorities. Based on the combined 2023 annual figures of the companies — excluding Milcobel’s Ysco business, which is being divested — the new, combined organization would have a pro forma revenue of more than €14 billion (US$14.6 billion).