Upstream Operators  

As the EU Deforestation Regulation moves toward enforcement, one category of supply chain actor is under growing pressure: upstream operators. 

These are the companies that first place regulated commodities or products on the EU market. Under EUDR, they carry some of the highest compliance obligations and regulatory risk. 

For many businesses, understanding whether they qualify as an upstream operator is the first critical step toward compliance readiness. 

Below is a practical Q&A guide explaining upstream operators, their obligations, and why they sit at the centre of EUDR accountability. 

What Does “Upstream Operator” Mean Under EUDR? 

Under EUDR, an upstream operator is: 

The entity placing a relevant product on the EU market for the first time. 

This includes: 

• Importers 

• Commodity processors 

• Manufacturers 

• Exporters introducing products into the EU 

If your company is the first commercial entity responsible for bringing products like: 

• Coffee 

• Cocoa 

• Rubber 

• Palm oil 

• Soy 

• Timber 

• Cattle-derived products 

into the EU market, you are likely an upstream operator. 

Why Are Upstream Operators So Important? 

EUDR places significant responsibility on upstream operators because they are considered the primary gateway into the EU market. 

This means regulators expect them to: 
✔ Verify sourcing integrity 
✔ Conduct due diligence 
✔ Maintain traceability 
✔ Submit compliance documentation 

In practical terms: 
The upstream operator becomes the first line of compliance enforcement. 

What Are the Main Obligations of Upstream Operators? 

Upstream operators must ensure products are: 

• Deforestation-free 

• Produced legally 

• Supported by a valid Due Diligence Statement (DDS) 

To do this, they must complete several critical steps. 

1. Collect Geolocation Data 

Operators must gather: 

• Farm coordinates 

• Polygon-level geolocation data 

• GeoJSON files were applicable 

This allows authorities to verify whether production occurred on land affected by deforestation after the EUDR cutoff date. 

2. Submit a Due Diligence Statement (DDS) 

Before products enter the EU market: 
A DDS must be submitted through the EU Information System (TRACES). 

Without a DDS: 

• Products cannot legally enter the EU market. 

3. Conduct Risk Assessment 

Operators must assess: 

• Deforestation risk 

• Legality risk 

• Supply chain transparency 

• Country and regional risk indicators 

This includes reviewing: 

• Supplier records 

• Land-use evidence 

• Certification support documents 

4. Apply Risk Mitigation Measures 

If risks are identified, operators must: 

• Gather additional information 

• Strengthen verification 

• Conduct supplier audits 

• Delay sourcing if necessary 

Are Importers Automatically Upstream Operators? 

In many cases, yes. 

If an importer: 

• Brings relevant products into the EU market for the first time, and then they are treated as upstream operators under EUDR. 

This is one of the biggest operational shifts introduced by the regulation. 

Historically, many importers focused primarily on: 

• Logistics 

• Customs 

• Procurement 

Now they are also responsible for: 
Supply chain accountability. 

Can Upstream Operators Use Authorized Representatives? 

Yes. 

An upstream operator may appoint an authorized representative to: 

• Submit DDS documents 

• Interact with Competent Authorities 

However: 

Legal responsibility remains with the upstream operator. 

This means liability cannot be outsourced. 

What Challenges Do Upstream Operators Face? 

Many upstream operators struggle with: 

• Fragmented supplier data 

• Manual documentation workflows 

• Limited visibility beyond Tier 1 suppliers 

• Inconsistent geolocation records 

• Delayed supplier onboarding 

For companies sourcing from smallholder-heavy regions, these challenges become even more significant. 

How Are Companies Preparing for EUDR? 

Leading organizations are: 

• Digitizing supplier onboarding 
• Implementing polygon-level traceability 
• Automating DDS workflows 
• Integrating satellite monitoring 
• Building centralized compliance systems 

The shift is clear: 
Compliance is becoming a data infrastructure challenge not just a legal exercise. 

Why Does This Matter Strategically? 

Upstream operators now sit at the centre of global supply chain trust. 

Their ability to prove: 

• Origin 

• Legality 

• Deforestation-free sourcing 

will increasingly determine: 

• Market access 

• Buyer confidence 

• Commercial competitiveness 

In many sectors, EUDR compliance is already becoming a procurement requirement not just a regulatory obligation.

Frequently Asked Questions (FAQ’s)

Final Takeaway 

Under EUDR, upstream operators are no longer passive supply chain participants. 

They are now: 

• Compliance gatekeepers 

• Data custodians 

• Risk owners 

And because they sit closest to EU market entry, they carry the greatest responsibility for proving sourcing integrity. 

The companies that succeed will not be the ones reacting at customs. 

They will be the ones building transparent, traceable, and audit-ready systems long before shipments reach the port.