EU rules impact Ivory Coast cocoa trade

The cocoa industry in Ivory Coast, the world's largest producer accounting for 40% of global output, faces significant challenges as the 2026/2027 season begins. These difficulties stem from the implementation of a new electronic system designed to track beans from producer to supply chain, in response to the European Union's rules on deforestation (EUDR). The system aims to prove that cocoa is not produced on land recently cleared of forests and requires companies to make declarations and digitally trace products throughout the supply chain. However, the new system faces practical obstacles, such as a lack of necessary devices and calls highlighting the difficulty of using digital tools in rural areas. This could lead to delays in purchasing and exporting, risking the late arrival of crops to European markets. Failure to properly track could have direct impacts on global market supplies, especially since the European market accounts for 70% of Ivory Coast's cocoa exports, posing substantial risks to the national economy. Additionally, Ivory Coast is developing efforts to reduce reliance on exporting raw beans by establishing a local processing plant. Nonetheless, this initiative remains connected to European standards, which require proving the origin and sustainability of products digitally to ensure continued export opportunities.

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