Cocoa traceability rates pick up in Ivory Coast, Ghana, UN-backed report says

By May Angel

The volume of cocoa in Ivory Coast and Ghana that can be traced back to its origin increased last year as the world's top two cocoa growers prepared to comply with the EU's landmark anti-deforestation law, a U.N.-backed report has found.

The first-of-its-kind policy, aimed at ending the 10% of global deforestation fuelled by EU consumption of imported goods, was due to take effect on December 30 but is set to be delayed by another year.

It would have required EU importers of soy, beef, oil palm, coffee, rubber, timber, cocoa and derived products to prove their products weren't grown on deforested land by, for example, tracing their origin back to the farm where they were grown.

EU'S ANTI-DEFORESTATION LAW HAS FACED A BACKLASH

The report, published by the Cocoa and Forests Initiative (CFI), found 91% of directly sourced cocoa in Ivory Coast and Ghana could be traced in this way in 2024, up from 82% and 83%, respectively, in 2023.

According to the non-profit Trase, however, only around 35% of Ivory Coast's cocoa exports were directly sourced from farmer cooperatives in 2022, and industry experts say figures for Ghana are similar, if not lower.

Direct sourcing is when a chocolate maker or trader buys cocoa directly from farmers, rather than through a middleman, making traceability easier.

Complying with the EU's anti-deforestation law is critical for Ivory Coast and Ghana, which ship about two-thirds of their cocoa to the EU. The CFI data indicates they had some way to go in terms of compliance as of end-2024.

A cocoa consultant told Reuters at an industry conference last month that this was likely still the case.

Brussels' plan to delay the law comes amid opposition from industry players, some EU member states and influential EU trade partners like the United States, which says the rules are cumbersome and costly.

As part of its trade deal with U.S. President Donald Trump, the EU committed to work to address U.S. producers' concerns over the law.

The CFI was launched at the COP23 climate summit as a public-private partnership between Ivory Coast, Ghana and major cocoa and chocolate firms.

Deforestation is seen as the second leading cause of climate change after the burning of fossil fuels.