EU DEFORESTATION RULES PUT WEST AFRICA’S COCOA TRADE ON COMPLIANCE ALERT

Europe’s new deforestation rules are forcing Ghana and Côte d’Ivoire to overhaul cocoa traceability, with weak digital systems and incomplete farm-level data threatening access to one of the world’s biggest cocoa markets.

West Africa’s cocoa industry is facing a major compliance test as the European Union prepares to enforce its Deforestation Regulation, requiring cocoa entering the European market to be traceable to its precise origin and shown to have been produced without contributing to deforestation.

The regulation covers cocoa among seven commodities and requires operators placing covered products on the EU market to conduct due diligence and submit compliance information. The rules are scheduled to apply from December 30, 2026 for large and medium-sized operators.

The pressure is particularly significant for Côte d’Ivoire, the world’s largest cocoa producer. The country supplies about 70 per cent of its cocoa exports to Europe and produces roughly 40 per cent of global cocoa. Traders and cooperatives are already reporting difficulties using the new electronic traceability system introduced for the 2026/27 season.

The problems include inadequate equipment, unfamiliarity with digital purchasing tools and delays in recording transactions across rural supply chains. Any sustained disruption could slow cocoa purchases and deliveries during the new season.

Ghana has made stronger progress, with its Ghana Cocoa Traceability System and forest-risk mapping developed specifically to support EUDR compliance. The EU has described the country’s preparations as significant progress towards a traceable and legal cocoa supply chain.

For West African exporters, the issue is increasingly one of market access. Cocoa that cannot be adequately traced or supported by the required due-diligence evidence could face delays, additional scrutiny or exclusion from European supply chains.

The emerging compliance burden places greater responsibility on governments, exporters, cooperatives and international buyers to verify farm origin, geolocation, legality and deforestation risk before cocoa reaches the export chain.