Slow uptake of the LPA Geolocation tool presents a challenge for Australia’s leather and hide industry when new EU regulations come into effect later this year…
NEW European Union Deforestation Regulations (EUDR) are set to deliver a potential crisis for Australia’s hide industry, with significant implications for all Australian cattle producers and processors.
Executive Manager at AI Topper, a major processor and exporter of Australian hides, skins and finished leather, Micaela Topper, said she was concerned that many Australian hides would be ineligible for export when the EUDR commences on 31 December.
“The EU is our industry’s highest-value market but, at the moment, it’s likely that many of the hides we are now purchasing from processors will be ineligible for EU export in 2026,” she said.
“This is because the majority of Australia’s cattle producers still don’t fully understand why they need to opt-in and share their data via the new LPA Geolocation tool, even if they aren’t EUCAS-accredited.”
Impact extends well beyond the EU
Ms Topper said more than half of Australia’s premium wet blue treated hides are exported to the Italian market, making us Italy’s fifth largest source of leather.
“Europe is a large and profitable market for Australian leather and hides, but many producers wouldn’t know that it’s not the only market impacted by the EUDR requirements.
“Australia sells a lot of semi-processed (salted) hides into the Chinese and wider Asian markets, much of which could potentially be tanned and then re-sold into the European market as finished leather.
“The supply chain for that finished leather will then also need to demonstrate compliance with the new regulations, so the full impact won’t just be felt in our direct EU exports – it could also affect the viability of our exports to other markets.”
Impact on producers and processors
“I think many people believe that if they aren’t one of Australia’s EUCAS-accredited producers (eligible to supply beef into the EU market), then the new EUDR requirements won’t affect them but that’s simply not the case,” Ms Topper said.
“In the case of hides, all cattle processed in Australia needs to be EU-compliant and accompanied by the lifetime geolocations required by EU importers, otherwise these hides will potentially be worthless.”
While this is a critical issue for the leather and hides industry, it was also essential to ensuring processors can maintain a commercial market for their hides as by-product of processing.
“If we reach a point where the value of our hides market becomes so depleted that processors can’t sell their hides, they’ll need to find another way to dispose of them,” she said. “Most likely, they’d have to bury them which then presents a different sustainability issue for industry.”
Potentially, this could also lead to processors charging disposal fees or paying producers slightly less per head to mitigate that disposal cost.
The solution
Ms Topper said it was critical that all Australian cattle producers understand the importance of EU-compliance in securing the supply chain for hides and other cattle by-products.
“Many countries are facing the same challenge of complying with the EUDR, and we’re fortunate that Australia now has the LPA Geolocation tool which makes it easy for producers to share their geolocation data.
“I urge all producers to opt-in to use the tool as soon as possible to ensure our hides export market remains secure in 2026.”
“The required geolocation data is shared securely with feedlots and processors via the National Livestock Identification System (NLIS), enabling industry to maintain EU access.
Future value of geolocation sharing
Beyond the EUDR, Ms Topper said it was becoming a wider issue in the leather goods market with many large international brands already putting a focus on deforestation credentials in their supply chains.
“With this growing demand and the expansion of greenwashing laws globally, I think industry will eventually understand the value of being able to easily share those lifetime traceability credentials can extend far beyond compliance with the EUDR requirements,” she said.
More information
- The LPA Geolocation tool is available through cattle producers’ LPA account via myMLA. The tool is free to use and producers can choose to opt-out at any time, ensuring they retain control of their data.
- Producers can learn more about securing their EU access by reading this earlier article on the EUDR requirements.
It is interesting how the EU bans HGP's, which means you need more land and more emissions to produce the same amount of beef. Yet they carry on like they are environmental champions. The same as Coles and those other schemes that ban HGP's and Sodium Monensin.
Wondering why??? Perhaps read the fine print in the T&C’s. Not a cattle producer myself but don’t know what an EUDR geolocation declaration has got to do with non-deforestation issues “specifically” addressing, Labor rights, third party rights, human rights as protected under international law, the principle of free, prior and informed consent as outlined in UN declaration on the Rights of Indigenous Peoples, and taxation, anti-corruption, trade and customs regulations. Just saying!!!
What a joke, I can just imagine the staff in the pits down stairs segregating hides on the basis of what someone in the eu thinks is acceptable tree cover. China and Brazil are also big suppliers to the Italian hide trade. The extra dollars and niche markets the nlis, lpa combo was to bring us has never materialised. If the graziers in the eu protocol have been roped into this extra layer , I would think Ms Topper has a running start. I’ve never seen a reference to hides on the feedback sheet or any commentary as to what they are worth to the abattoir. All commodities have base industry standards and are traded on price first , quality second. As for me and mine, we’ll keep selling to the highest bidder.
if its such an integral or financially important part of the processing sector why haven't we had direct engagement from our industry? the only time I've heard about this is for the second time scrolling through beef central. what the hell are our industry representatives and politicians actually doing? im assuming it will be the producers fault for the low uptake not the lack of communication from industry. it will also be very disappointing if our industry would in any way suggest a penalty and or extra charges associated with disposal of unsaleable hides arising from a lack of leadership. cheers Matthew Della Gola