Beyond Timber: How EUDR is helping manufacturers build stronger export businesses

Beyond Timber: How EUDR is helping manufacturers build stronger export businesses

A new SAFI pilot is revealing that the future of furniture exports may depend as much on what happens inside the factory as what happens when it reaches foreign shores. As global compliance requirements evolve, South African manufacturers are discovering that traceability, transparency and smarter supply chains can become powerful competitive advantages in international markets.

03 June 2026, Johannesburg: For many furniture manufacturers, the European Union Deforestation Regulation (EUDR) has been viewed primarily as a market access requirement aimed at proving the origin of timber products.

However, insights emerging from SAFI’s EUDR pilot programme, conducted with EcoSquare Consulting and participating manufacturers, are painting a much bigger picture. Rather than simply introducing new compliance obligations, the process is helping manufacturers strengthen supply chains, improve product knowledge and position themselves more competitively for international growth.

The pilot findings, first shared in December 2025 and expanded during industry working sessions in February 2026, suggest that businesses which embrace these requirements early could gain a meaningful advantage as global buyers increasingly prioritise transparency and accountability.

A roadmap for future-ready manufacturing

The pilot was established to help local manufacturers better understand what EUDR readiness means in practice and what systems will be required before the regulation comes into effect on 30 December 2026.

What quickly became clear is that compliance is not confined to export departments or administrative functions. It touches every stage of the manufacturing process, from sourcing materials and managing suppliers to product design and production planning.

“The pilot has given us valuable insight into how global market expectations are evolving,” says Greg Boulle, CEO of SAFI. “More importantly, it has shown that compliance can become a catalyst for stronger business systems, better supply chain management and improved competitiveness.”

Better visibility creates better businesses

One of the strongest outcomes of the pilot has been the focus on supply chain visibility.
Manufacturers participating in the programme found that understanding exactly where materials originate, what they contain, and how they are documented creates benefits that extend well beyond compliance.

By engaging suppliers more closely and formalising documentation processes, businesses are gaining greater confidence in the products they manufacture and export.

“The pilot has encouraged manufacturers to ask deeper questions about their materials and suppliers,” says Tracy Symons, SAFI’s Marketing Relationship Manager. “That level of visibility is valuable not only for compliance but also for quality assurance, risk management and customer confidence.”

Rather than relying on informal assurances, companies are increasingly moving towards documented Statements of Compliance, Safety Data Sheets and structured supplier declarations. This creates stronger, more transparent relationships throughout the value chain.

Turning compliance into innovation

The pilot has also highlighted opportunities for innovation. As manufacturers evaluate materials, coatings, adhesives and finishes against international requirements, many are exploring alternative products and production methods that may deliver additional environmental and operational benefits.

In some cases, this has prompted conversations around lower-toxicity finishes, plant-based alternatives and more sustainable manufacturing approaches. While every manufacturer’s journey will be different, the process is encouraging businesses to examine how products are designed and manufactured, opening the door to continuous improvement and innovation.

“International markets are increasingly rewarding businesses that can demonstrate responsible sourcing and sustainable manufacturing practices,” says Boulle. “Those capabilities are becoming part of a company’s value proposition.”

South Africa starts from a position of strength

Importantly, local manufacturers are not starting from scratch. South Africa’s low-risk status in relation to deforestation provides a strong foundation for EUDR compliance, particularly compared to higher-risk sourcing regions around the world. The pilot is helping manufacturers build on this advantage by establishing practical systems for traceability, documentation and supplier engagement.

According to Symons, the extension of the EUDR implementation deadline until 30 December 2026 gives manufacturers valuable time to prepare properly: “The additional time allows businesses to put robust systems in place rather than rushing to meet a deadline. Companies that use this period strategically will be better prepared not only for compliance but also for future export opportunities.”

Strengthening export competitiveness

Perhaps the most important lesson emerging from the pilot is that global trade is changing. International buyers increasingly want proof of origin, transparency, accountability and documented supply chain practices. These expectations are becoming part of mainstream business, not just environmental regulation.

For manufacturers willing to adapt, this creates an opportunity to strengthen customer relationships, access new markets and differentiate themselves from competitors, explains Boulle: “The pilot has shown that EUDR readiness is really about business readiness. Manufacturers that invest in traceability, transparency and strong supply chain management are building capabilities that will serve them well far beyond 2026.”

As South Africa’s furniture industry continues its export growth journey, the message from the pilot is encouraging. Compliance should not be viewed as a barrier to trade, but as a framework that can help manufacturers build stronger, more resilient and more internationally competitive businesses.

ENDS

What is the EDUR?

The European Union Deforestation Regulation (EUDR) is a new law designed to ensure that products sold within the European Union (EU) do not contribute to global deforestation. It requires companies to prove that certain commodities, including wood and wood-based products, originate from legally harvested, deforestation-free sources.

Businesses must provide detailed traceability information, including geolocation data and documented supply chain records. For furniture manufacturers exporting to the EU, EUDR compliance is becoming an imperative market access requirement. Beyond meeting regulatory obligations, the regulation is encouraging greater transparency, stronger supply chains and improved sustainability practices across the global furniture industry.

About SAFI

SAFI is the national industry association representing more than 1,000 furniture manufacturers and stakeholders across South Africa. SAFI works to strengthen the sector through advocacy, skills development, export promotion, industry research and market access initiatives.

It plays a leading role in implementing the Furniture Industry Master Plan and collaborates closely with government, industry bodies and manufacturers to address challenges such as competitiveness, localisation, compliance and transformation. Through programmes, trade missions, training initiatives and practical business support, SAFI aims to build a globally competitive, sustainable and inclusive furniture manufacturing industry that creates jobs and drives economic growth.

UDR is helping manufacturers build stronger export businesses