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trends
happenings
EU Law Could Keep
Cocoa Prices Elevated
A new European Union law that seeks to
protect the world's rainforests that have
been affected by land expansion because
of cocoa, palm oil, coffee production,
and cattle, has compelled farms to invest
in technology to meet its requirements,
reports The Wall Street Journal.
The EU is the largest chocolate
market, importing over half of the world's
cocoa beans. The law will also apply to
global brands including Mars and Nestlé,
according to the report.
Beginning December 30, 2024,
chocolate makers that sell or produce
products in the EU will have to show that
the cocoa they use wasn't grown on land
cut from forests since the end of 2020,
according to the report. This requires the
cocoa to be linked to the GPS coordinates
of the farm where it was harvested.
"This regulation will have a cost,"
said Michel Arrion, chief executive of the
International Cocoa Organization, which
represents 52 cocoa-importing and
exporting countries. "There will be a lot of
documentation and bureaucracy." Arrion
gave the warning during a recent global
conference in Brussels wherein industry
groups urged the EU to delay the new
law's implementation.
Cocoa prices have recently spiked
as a result of supply chain constraints,
difficult weather conditions, and a
persistent disease affecting crops called
black pod disease.
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