Sanaa:Ghana's cocoa industry is facing a significant challenge with the impending implementation of the European Union's Deforestation Regulation (EUDR) on December 30. The regulation mandates that large and medium-sized companies importing cocoa and other commodities into the EU must ensure their products were not grown on land deforested after December 31, 2020, and must be traceable to specific plots using geo-location data. Micro and small companies have until June 30, 2027, to comply.
According to Ghana Web, the stakes for Ghana are high, as the country exported 62% of its cocoa by value to the EU in 2022. The EU's Ambassador to Ghana, Rune Skinnebach, emphasized the importance of producer countries like Ghana aligning their systems with the regulation. Although the regulation does not specifically ban cocoa from any country, European importers and traders will be unable to purchase cocoa that cannot be traced to compliant farms.
The Ghana Cocoa Board (COCOBOD) has expressed readiness, with Deputy Director Eric Amengor stating that national systems, including the Ghana Cocoa Traceability System, are operational. COCOBOD has undertaken farm mapping and data validation, with 70 to 80% of cocoa farms already mapped. The board's digital system is designed to ensure traceability from farm to port.
EU officials, including Regis Meritan from the European Commission, have indicated confidence in Ghana's compliance potential, estimating that up to 98% of the country's cocoa production could meet the regulation's requirements. However, challenges such as illegal gold mining, known as galamsey, are impacting cocoa farms, with over 100,000 acres destroyed in key regions. This not only threatens production but also compliance, as new lands cleared after December 2026 would be non-compliant.
Smuggling poses another challenge, with COCOBOD seeking tougher sanctions to combat it. The Ghana Cocoa Board Act, 2026, aims to protect cocoa farms with stronger penalties against damaging activities like illegal mining. Despite these efforts, the 2026/27 season is expected to see a production drop due to adverse weather, disease, and mining activities.
Compliance with the EUDR could benefit Ghana, as traceable, deforestation-free cocoa may attract higher demand from European buyers. Ghana's investment in mapping and traceability could provide an edge over competitors less prepared for these new requirements, as sustainability will increasingly influence cocoa export flows to the EU.