EUDR MSPO

As the European Union Deforestation Regulation (EUDR) evolves, the introduction of Micro or Small Primary Operators (MSPOs) has raised important questions for both suppliers and downstream companies. While the category aims to simplify compliance for smaller operators, it also introduces new considerations for traceability, risk, and accountability. 

What is an MSPO under EUDR? 

A Micro or Small Primary Operator (MSPO) is a newly defined category under EUDR for smaller operators who place or export products they have grown, harvested, or produced themselves. 

To qualify, an operator must: 

• Be a micro or small enterprise (as per EU financial thresholds) 

• Be established in a low-risk country under the EUDR benchmarking system 

• Produce the relevant commodities directly (not just trade them) 

This category is designed to reduce the compliance burden for smaller, low-risk producers. 

Why did EUDR introduce the MSPO category? 

The primary goal is proportionality. 

Not all operators pose the same level of deforestation risk. By introducing MSPOs, the regulation aims to: 

• Reduce administrative burden for small producers 

• Focus stricter requirements on higher-risk operators 

• Encourage participation without overloading small businesses 

However, simplification for one group doesn’t eliminate responsibility across the supply chain. 

Do MSPOs still need to comply with EUDR requirements? 

Yes, but with simplified obligations. 

Even though MSPOs may face reduced due diligence requirements, they must still ensure that: 

• Products are deforestation-free 

• Production complies with local laws 

• Relevant data (like origin and geolocation) is available 

In short, compliance is not removed it is adapted. 

Does sourcing from MSPOs reduce compliance risk for companies? 

Not necessarily. 

This is a common misconception. 

While MSPOs operate in low-risk countries, downstream companies (like manufacturers or importers) are still responsible for ensuring: 

• Full traceability 

• Accurate geolocation data 

• Verification of deforestation-free sourcing 

If MSPO data is incomplete or unverified, the risk shifts downstream. 

What are the key challenges when working with MSPOs? 

Despite simplifications, several challenges remain: 

• Validating MSPO status (size, location, production criteria) 

• Ensuring consistent data quality from small operators 

• Managing traceability gaps in fragmented supply chains 

• Avoiding over-reliance on “low-risk” classification 

In practice, MSPOs can introduce hidden compliance risks if not managed properly. 

How should companies approach MSPO sourcing under EUDR? 

Companies should treat MSPO sourcing with the same rigor as other suppliers, by: 

• Verifying supplier classification 

• Collecting plot-level geolocation data 

• Maintaining chain of custody traceability 

• Conducting risk assessments, even in low-risk regions 

The key is not to assume compliance but to validate it continuously. 

How can technology help manage MSPO-related complexity? 

Digital traceability platforms play a critical role in bridging gaps by: 

• Structuring supplier data and classification 

• Capturing farm-level geolocation and production details 

• Ensuring consistent, audit-ready documentation 

• Enabling real-time risk monitoring across suppliers 

This helps companies maintain compliance without increasing manual effort. 

Frequently Asked Questions (FAQ’s)

Final Takeaway 

The introduction of MSPOs is a step toward making EUDR more practical and inclusive. 

But it doesn’t remove the need for robust traceability and verification. 

For companies, the real challenge is not identifying MSPOs it’s ensuring that sourcing from them remains compliant, transparent, and defensible. 

Because under EUDR, accountability doesn’t stop at the supplier. 

It flows across the entire supply chain.