Ghana’s cocoa and oil palm sectors face potential EU market exclusion if they don’t comply with new deforestation-free regulations, with a key vote next week.
Ghana’s cocoa and oil palm sectors are on edge as the European Union (EU) prepares for a decisive vote on the controversial EU Deforestation Regulation (EUDR).
This regulation, if enforced, would require Ghana’s key export industries to ensure their products are deforestation-free, unlinked to forest degradation, and clear of illegal harvesting.
Initially, the EUDR was scheduled to take effect on December 31, 2024, for most companies trading with the EU. However, the upcoming vote on November 13 and 14, 2024, will determine if this timeline remains or if a grace period will be granted.
The stakes are high, as local companies in Ghana’s cocoa and oil palm supply chains face pressure to align with these new standards, which also affect shea, coconut, and coffee.
Together, Ghana and Ivory Coast dominate the global cocoa market, producing over half of the world’s cocoa supply—65 percent from Ivory Coast and 23 percent from Ghana. In recent years, producers in both countries have faced allegations linking cocoa production to forced labor and illegal deforestation, adding urgency to these new EU requirements.
Many industry groups across Africa and globally are voicing concerns about the timeline, arguing that the immediate implementation of EUDR could be challenging. They’re calling for more time to adjust their processes and verify their production sources to meet EU standards.
If the EU parliament agrees to delay the regulation, it would allow traders and exporters a one-year extension, pushing the compliance deadline to January 1, 2026. This would be welcome news for Ghana, as the EU has made it clear that the cocoa sector must prepare for these new standards, especially in light of recent studies showing gaps in traceability in both Ghana and Ivory Coast.
While Ghana and Ivory Coast have pledged to address traceability issues, there are concerns that the EUDR, if applied immediately, could put a heavy burden on Ghana’s cocoa sector. Industry experts warn that without some adjustments, thousands of smallholder farmers and cocoa-dependent communities could feel the impact.
Non-compliance could mean exclusion from the EU market—a critical destination for Ghana’s cocoa, oil palm, and other exports.
