Golden Agri-Resources (GAR) has initiated customer trials for its SmartTrace due diligence platform as part of its broader efforts to support compliance with the upcoming European Union Regulation on Deforestation-free Products (EUDR). This regulation, set to take effect on December 30, 2025, will require operators importing certain commodities into the EU to ensure their products are free from deforestation risks and comply with local laws.
One of the first companies to pilot the SmartTrace system is Verborg Group, a leading tropical oils processor that operates an advanced refinery in Farmsum, the Netherlands. Agri-Resources In early 2024, GAR and Verborg Group established a strategic partnership focused on delivering high-quality, traceable, and deforestation-free tropical oils to European customers. This collaboration underscores both companies’ commitment to sustainability and regulatory compliance.
A Milestone Shipment for EUDR Compliance
As part of the SmartTrace pilot, a significant shipment of 9,500 metric tonnes of palm oil products was delivered to Verborg Group’s refinery in late February. This shipment is entirely traceable to the Indonesian plantations where the oil was cultivated, marking a major step forward in supply chain transparency. Agri-Resources The trial serves as a critical test to refine compliance systems and processes ahead of the EUDR’s enforcement.
Goedhart Borgesius, Director of Verborg Group, highlighted the importance of this initiative in preparing European buyers for the new regulatory landscape: “We recognise the responsibility we have to our customers to provide sustainably produced, high-quality, and deforestation-free tropical oils. This shipment marks a milestone in our ability to demonstrate these attributes and offer our customers confidence that they are helping to eliminate deforestation risk from the tropical oil supply chain.”
Building Trust in a Complex Supply Chain
The EUDR mandates that businesses importing palm oil, soy, cocoa, coffee, rubber, and certain wood products into the EU provide comprehensive due diligence reports. Agri-Resources These reports must confirm that the commodities were produced in compliance with local regulations and are not linked to deforestation. Ensuring full traceability of these products is a significant challenge, given the complexities of global agricultural supply chains.
GAR’s SmartTrace platform is designed to enhance visibility, security, and efficiency in supply chain due diligence. The web-based system provides unparalleled oversight, allowing companies to track every component of a palm oil shipment down to the plantation level. Agri-Resources Blockchain technology authenticates sourcing data, offering an end-to-end view that increases trust and transparency.
SmartTrace builds on over a decade of investment in supply chain traceability by GAR. The company has achieved 100% traceability for the palm oil produced on its own estates and has extended Traceability to the Plantation (TTP) to 99% of its total palm oil supply chain in Indonesia. Other key commodities in GAR’s portfolio, including soy, sugar, coconut, and sunflower oil, are also fully traceable to the mill level.
Meeting Emerging Compliance Needs
Beyond providing visibility into product origins, SmartTrace delivers vital insights and analysis to help buyers meet evolving regulatory demands. Agri-Resources The platform enables companies and traders to generate detailed compliance reports, covering key aspects such as due diligence and risk mitigation for deforestation and legality.
A key feature of SmartTrace is its seamless integration with the EU’s TRACES platform, a digital tool used by European authorities to monitor compliance with food safety and environmental regulations. By aligning with TRACES, SmartTrace helps businesses efficiently compile and submit the necessary documentation for EUDR compliance, reducing administrative burdens and ensuring adherence to stringent regulatory requirements.
Maarten van der Hoeven, GAR’s Head of Europe and Latin America, emphasized the benefits of digitizing compliance processes: “By digitising the due diligence process, SmartTrace helps our customers collect, manage, and share the data needed to meet EUDR requirements. In a complex supply chain where compliance data for one shipment can contain millions of data points, we want to ensure our customers can access accurate, efficient, and trusted data to demonstrate that their palm oil is deforestation-free.”
A Future-Proof Solution for Sustainability
While the current focus of SmartTrace is on helping businesses comply with the EUDR, the platform’s adaptability extends beyond this regulation. Agri-Resources As sustainability standards evolve, companies must be prepared to navigate a shifting regulatory landscape. Agri-Resources SmartTrace is designed to accommodate various compliance frameworks and reporting requirements, making it a valuable tool for businesses operating in the global commodity market.
For Verborg Group, the ability to integrate SmartTrace into its operations aligns with its long-term sustainability goals. “Agri-Resources The global demand for traceable, deforestation-free products is increasing, and regulatory frameworks are becoming more stringent,” noted Borgesius. “By working with GAR and leveraging the SmartTrace platform, we are positioning ourselves to meet these demands while reinforcing our commitment to responsible sourcing.”
Driving Industry-Wide Change
The partnership between GAR and Verborg Group is a testament to the proactive steps being taken by industry leaders to address sustainability challenges. As the EUDR deadline approaches, initiatives like SmartTrace will play a crucial role in helping businesses transition smoothly into compliance, ensuring that European consumers receive products that align with their environmental values.
By pioneering digital traceability solutions, GAR and Verborg Group are setting new standards for accountability in the palm oil sector. Agri-Resources Their efforts contribute to broader industry transformation, paving the way for a more sustainable and transparent supply chain.
With ongoing trials and refinements, SmartTrace is poised to become a vital asset for companies navigating the evolving regulatory landscape. As GAR continues to expand its traceability efforts and Verborg Group enhances its sustainable sourcing capabilities, this collaboration marks a significant step toward a deforestation-free future in the tropical oils industry.
