Fully applicable by the end of 2024, the EU regulation on deforestation (EUDR) is raising a number of concerns about the consequences of its application.
The cocoa and chocolate industry highlights the likely additional cost of compliance, given the new requirements for due diligence, traceability and data collection.
Theoretically borne by operators placing goods on the EU market in the first place (and then passed on to consumers?), several questions emerge:
- What of the most modest operators who do not have the financial means to put in place the tools required?
- What about the emergence of a parallel market, outside the EU, more opaque and less regulated?
- And last but not least, what impact will this have on farmers and small producers upstream?
This demonstrates, as often, the need to look beyond regulatory compliance and embark on collaborative and equitable long-term strategies with producers.
Who will pay? APAC cocoa industry says EU Deforestation Regulation could create ‘two-tier market’
The cocoa and chocolates industry in Asia Pacific is concerned that the EU Deforestation Regulation could lead a two-tier market for cocoa beans, which could have far-ranging cost and pricing implications.
