From Cocoa to Chocolate...and not only
The European Union is the world’s largest cocoa importer accounting for 60 percent of the world’s imports, with beans originating mainly from Côte d’Ivoire (the world’s largest producer), Ghana and Cameroon. The cocoa supply chain in these three countries is facing many interlinked challenges in terms of sustainability that include persistent poverty of small producers, child labour and deforestation.
In view of making the cocoa value chain more equitable and sustainable, the EU launched in 2020 the EU Sustainable Cocoa Initiative (SCI) to help provide a better income for farmers, contribute to national public revenues, and put an end to environmental degradation, deforestation, and labour rights abuses, which include child labour and gender inequality.
The EU Cocoa Talks
The EU Cocoa Talks aim to build consensus among all EU stakeholders (EU Member States, industry, civil society, etc.) on the transitions towards sustainable cocoa value chains in Côte d’Ivoire, Ghana and Cameroon. They are organised by the European Commission in Brussels. Representatives from cocoa-producing countries participate and help to guide its conclusions.
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Cocoa prices
Cocoa prices. It is widely recognised that current cocoa prices do not allow farmers to make a living. Farmer poverty is one of the main drivers of socially and environmentally unsustainable practices such as child labour and deforestation, and therefore a higher income is a necessary precondition for more sustainable cocoa production. To face these challenges, a focus group on markets and prices has been proposed, to be led by the Côte d’Ivoire-Ghana Cocoa Initiative (CIGCI), for making recommendations regarding market-based mechanisms and policies to improve prices and farmers’ living incomes.
Sustainability standards and traceability
The European Union is taking action to reduce the adverse social and environmental impacts in its supply chains with two legislative proposals:
- a “Corporate Sustainability Due Diligence Directive” that requires large companies operating in the EU to conduct human rights and environmental due diligence in their supply chains
- a “Regulation on Deforestation-Free Products” that prohibits the placing on the EU market of certain commodities (including cocoa) associated with deforestation in the country of origin after a specified cut-off date