Tracing Cocoa Origins: Ivory Coast's Challenge with New EU Law

A recent analysis by Trase highlights the challenges Ivory Coast faces in conforming to the European Union's new anti-deforestation regulation. The study reveals that less than half of the nation's cocoa can be traced back to its source, posing a significant hurdle for compliance with the law set to take effect in December.

The EU regulation mandates that importers verify their products aren't contributing to deforestation, which requires detailed traceability of cocoa origins. Currently, only 48% of Ivory Coast's cocoa exports can be traced to specific farming cooperatives, primarily due to the prevalence of an indirect supply chain involving numerous intermediaries.

In response to the regulations, Ivory Coast has implemented a digitalized system for sales and purchases to enhance verification processes. Despite such efforts, the country's limited forest areas and ongoing pressure from major trade partners, including the U.S., make full compliance with the EU's anti-deforestation law a challenging endeavor.

(With inputs from agencies.)