A new European Union regulation aimed at curbing global deforestation has triggered alarm across Ivory Coast’s cocoa industry, with small farmers and exporters warning of economic ruin.
The regulation, set to take effect in December 2025, requires importers to prove their cocoa is unlinked to forest destruction. While designed to promote environmental sustainability, critics argue it places a disproportionate burden on African producers — especially smallholder farmers. Ivory Coast, which supplies nearly two-thirds of its cocoa to the EU, has introduced a digital sales and traceability system in response. Under this model, farmers receive digital ID cards and are paid via mobile money after delivering beans to port. Officials claim this ensures ‘100% traceability.’
But many cooperatives and domestic exporters say they lack the resources to comply. “Compliance to the regulations requires investments that we can’t make,” said a local trading company director, who warned the rules could wipe out smaller players. Multinational firms plan to invest at least 200 CFA francs ($0.36) per kilogram to meet the requirements — costs that local businesses cannot absorb. With over 900,000 farmers depending on cocoa for survival, the regulation threatens livelihoods and national economic stability. Industry leaders urge the Ivorian government and international partners to offer financial and technical support — or risk watching local businesses “disappear” under the weight of EU policy.