EUDR COMPLIANCE COSTS: A REVIEW OF BURDENS ON OIL PALM SMALLHOLDERS
DOI:
https://doi.org/10.18623/rvd.v22.n2.3317Keywords:
EUDR, Compliance Costs, Smallholders, Oil Palm, Systematic Literature, ReviewAbstract
The implementation of the European Union Deforestation Regulation (EUDR) has introduced far-reaching compliance obligations for actors in the global palm oil supply chain, particularly oil palm smallholders in Southeast Asia. These smallholders, who account for over 40% of production in Indonesia and Malaysia, face structural disadvantages in aligning with the regulation. This study aims to examine the types and intensity of burdens experienced by oil palm smallholders under the EUDR framework. This qualitative research adopts a Systematic Literature Review (SLR) approach using the PRISMA (Preferred Reporting Items for Systematic Reviews and Meta-Analyses) protocol. Data were collected through a structured search on the ScienceDirect database, applying specific Boolean keyword combinations related to EUDR, compliance, cost, and oil palm smallholders. After filtering by publication date (2023–2025), open-access status, and thematic relevance, 30 peer-reviewed articles were selected for final analysis. Data were analysed through thematic coding and comparative synthesis, allowing for the identification of dominant burden categories. The findings reveal four primary burdens: economic (high costs of traceability and certification), legal (land tenure insecurity), institutional (weak extension services and cooperative governance), and technical (digital access barriers). These burdens significantly limit smallholder inclusion in EUDR-compliant supply chains, in contrast to the readiness of large agribusinesses. The study concludes that EUDR, while environmentally ambitious, risks marginalising smallholders without differentiated compliance support. Future research should explore scalable, inclusive compliance mechanisms and policy frameworks that protect both environmental goals and smallholder livelihoods.
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