Ghana is testing a cutting-edge system to trace cocoa beans from farm to port as it prepares for the implementation of a new European Union law that bans the import of commodities linked to deforestation. The law, set to take effect at the end of December, requires EU importers of products like coffee, cocoa, and palm oil to prove their supply chains are not contributing to deforestation or face fines of up to 4 percent of their turnover.
Michael Amoah, a representative from Ghana’s cocoa regulator Cocobod, shared the news on Thursday during a webinar organised by environmental groups Fern and Mighty Earth. ‘We have polygon-mapped all the cocoa in Ghana, established an end-to-end traceability system, and successfully piloted it,’ Amoah announced, highlighting Ghana’s proactive efforts to comply with the EU law.
With around 60 percent of Ghana’s cocoa exported to the EU, meeting the new requirements is crucial for the country, which is the world’s second-largest cocoa producer. The cocoa industry employs about 17 percent of Ghana’s workforce, most of whom are smallholder farmers in rural areas. These farmers may struggle to meet the new standards without government assistance, as the law demands proof that their farms are not located on deforested land after 2020, using geolocation data.
‘We are hoping what we’ve done will enable us to capture a greater percent of the EU market,’ Amoah said, expressing optimism about Ghana’s position in the evolving global cocoa market.
The new EU regulation has drawn criticism from commodity producers in countries like Indonesia and Brazil, who argue that the law is protectionist and may exclude vulnerable small-scale farmers from accessing the lucrative EU market. However, Ghana is positioning itself as a leader in responsible cocoa production, potentially giving it an edge in retaining and expanding its EU export market share.
As deforestation ranks as the second leading cause of climate change, Ghana’s compliance with this law is also part of a larger effort to reduce environmental impacts and ensure the sustainability of its cocoa industry.
Credit: Africa Briefing
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