Cocoa traders say EU deforestation law set to fail

Major cocoa traders, amid mounting criticism, have asked the European Union to delay a new environmental regulation aimed at tackling deforestation.

The absence of clarity of key elements in the European Deforestation Regulation has made compliance efforts highly uncertain, the European Cocoa Association said in a letter to European Commission President Ursula von der Leyen.

The trade group, which represents top traders, including Barry Callebaut and Cargill Inc., called for an extension of the transition period for at least six months after several milestones including the publication of formal guidance have been reached.

The letter comes barely a week after German Chancellor Olaf Scholz pushed back against the regulation, adding to objections voiced by some nations, including Brazil, Indonesia and Malaysia, which argue it will have a negative impact across global commodities markets.

“Given these shortcomings, the implementation of the EUDR is respectfully, heading towards critical failure with serious consequences for the cocoa supply chain,” said ECA President Paul Davis. The regulation is due to begin on Dec. 30.

The ECA cited operational difficulties in a crucial information system, including its ability to process millions of farm data adequately, and uncertainty around how member states will interpret the legislation.