GHANA – Ghana’s cocoa industry is piloting a traceability system to ensure compliance with the new European Union law on deforestation-linked imports.
The law, known as the European Union Deforestation Regulation (EUDR), will come into effect at the end of December 2024.
It mandates EU importers of commodities, including cocoa, to prove that their supply chains do not contribute to deforestation or face significant penalties.
The Ghana Cocoa Board (Cocobod) has taken proactive steps to meet the requirements of the EUDR by developing a traceability system that tracks cocoa beans from the farm to the port.
“We have polygon-mapped all the cocoa in Ghana, established an end-to-end traceability system, and successfully piloted it,” said Michael Amoah, a representative from Cocobod.
Ghana is the world’s second-largest cocoa producer, with around 60 percent of its cocoa exports destined for the European Union.
This makes compliance with the EUDR crucial for the country’s cocoa industry, which employs about 17 percent of Ghana’s working population. The majority of cocoa farmers in Ghana are smallholders living in remote rural areas.
Without government support, they could struggle to meet the law’s stringent requirements, which include providing buyers with geolocation data that proves their farms are not on land deforested after 2020.
The traceability system Cocobod is piloting aims to address these challenges. “We are hoping what we’ve done will enable us to capture a greater percentage of the EU market,” said Amoah.
The initiative also aligns with Ghana’s broader strategy to enhance the sustainability and transparency of its cocoa industry.
Recently, Cocobod announced a nearly 45 percent increase in the state-guaranteed price paid to cocoa farmers for the 2024/25 crop season.
The move is intended to improve farmers’ incomes and prevent the smuggling of cocoa beans out of the country. The new price of 48,000 cedis (US$3,063.13) per ton will take effect when the season begins later in September.
ACM launches cocoa market place
Meanwhile, the African Cocoa Marketplace (ACM) has launched an innovative digital platform that connects African cocoa producers with global buyers and investors.
ACM aims to showcase the sustainability, quality, and excellence of African cocoa, which has over 120 years of history in the global market.
This platform, launched just as the 2024-25 harvest season begins, provides a timely opportunity for African sellers to present their value propositions to international buyers.
ACM’s platform features a rigorous certification process that verifies marketing claims made by sellers, ensuring transparency and traceability throughout the supply chain.
“Our platform makes it easy for both parties to share their value propositions and demonstrate evidence of best practices to potential business partners,” said Dr. Kristy Leissle, CEO and founder of ACM.
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