BRUSSELS - Cocoa-producing countries have asked the European Union to delay the implementation of new rules aimed at preventing the import of products of deforestation into Europe. They cited the potential adverse effects on farmers.
Côte d’Ivoire and Ghana account for half of the world’s cocoa production, but more than a third of cocoa bean processing occurs in Europe. Implementing the rules will “add uncertainty in an already highly disrupted market,” the International Cocoa Organization, an industry body based in Côte d’Ivoire, reportedly said in a request for an extension made in September.
The group said the Dec. 30, 2024 deadline is “unrealistic” because the European Commission had not shared all documents necessary for complying with its directives, reports French broadcaster RFI.
The EU’s drive for deforestation-free products goes beyond cocoa to include cattle, wood, cocoa, soy, palm oil, coffee, and rubber. The bloc is targeting a reduction in greenhouse gas emissions and biodiversity loss. It places the burden of proof on operators and traders to show that their products do not come from recently deforested land.
Globally, cocoa farmers produce around five million tonnes of cocoa beans per year. The biggest cocoa-growing countries are Côte d'Ivoire and Ghana, accounting for half of the worldwide cocoa production. More than a third of the cocoa beans are processed in Europe.
Most cocoa is produced in West Africa
In the last cocoa season 2022/2023, around 5 million tonnes of cocoa were produced worldwide. Côte d'Ivoire and Ghana are by far the two largest cocoa growing countries, accounting for 50 % of global cocoa production, followed by Ecuador with 9 %. In Asia, Indonesia is the largest producer country.
Cocoa production has increased steadily over the past 40 years, with up to 95 % of cocoa beans traded on international commodity markets. The cocoa market is volatile and subject to various trends and fluctuations. The ups and downs are triggered by, among other things, political uncertainties, weather-related production shortfalls and overproduction in producing countries. The last low in prices was reached in 2016/2017, when a bumper harvest caused prices to fall to their lowest level in ten years. Since then, prices have been rising steadily.
Europe is the leading processor of cocoa beans
Cocoa beans are processed around the globe into cocoa mass, cocoa butter, cocoa powder, chocolate or other cocoa products. One third of the annual harvest is ground in Europe. 590,000 tons – or 12 % of the beans – are ground in the Netherlands alone. Switzerland processes around 55,000 tons of cocoa, which corresponds to about one percent of the global cocoa production.