Volume of cocoa in Ivory Coast and Ghana hasn’t seen any rise last year

The traceability of cocoa in Ivory Coast and Ghana hasn't been entirely efficient in terms of tracking its supply and the source in terms of their imports' link to deforestation. Moreover, the volume of fully-traced cocoa didn't register any growth the previous year. This puts the entire operational aspect in question concerning a need for compliance with the EU law that bans commodities that have been derived from deforestation.

The new law, set to take effect next year, will require importers of commodities and related goods to provide evidence that their products weren’t grown on deforested land. This includes tracing supply chains down to the specific plot where the raw materials were cultivated. A report from the Cocoa and Forests Initiative (CFI) revealed that 83% of directly sourced cocoa in Ghana and 82% in Ivory Coast can be traced, with figures remaining flat compared to 2022.

However, the non-profit Trase noted that in 2022, only about 35% of Ivory Coast’s cocoa exports were directly sourced from farmer cooperatives. Experts suggest that Ghana's figures may be similar, if not lower. Direct sourcing refers to the practice of cocoa traders or chocolate makers purchasing cocoa directly from farmers, bypassing intermediaries and simplifying traceability.

The CFI report also highlighted that national traceability systems are currently being piloted in both Ivory Coast and Ghana. These systems are expected to improve traceability across the supply chain by 2025 when the EU Deforestation Regulation (EUDR) is fully implemented.

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For Ivory Coast and Ghana, complying with this law is crucial, as around two-thirds of their cocoa exports go to the EU. Millions of rural farmers, many of whom live in poverty, depend on cocoa farming for their livelihoods. While the EUDR is celebrated as a significant step in combating climate change, critics, including the European Cocoa Association, warn that the regulation could unintentionally exclude small-scale farmers from the EU market and disrupt the region’s supply chains.