Ghana warns European Chocolate buyers to be ready to pay up for sustainable Cocoa

European cocoa buyers must be ready to pay more for beans that meet the region’s looming sustainability rules, key grower Ghana warned.

Ivory Coast and Ghana, which together supply about two-thirds of the chocolate ingredient, are having to set up systems to comply with new European Union regulations that ensure products aren’t grown on deforested land. They will enter into force at the end of this month, though companies have until the end of 2024 to comply.

The EU is also putting in measures to tackle issues like child labor within company supply chains. But meeting requirements of the rules will come at an extra cost that the consumer will have to pay, according to Ghana Cocoa Board Chief Executive Officer Joseph Boahen Aidoo. Such costs include traceability systems.

“We want to sustainably and responsibly produce cocoa, and that comes at a certain quality and cost which the consumer should be prepared to pay,” Aidoo said in an interview in the capital, Accra.

Ghana’s warning of extra costs comes as consumers around the world continue to be squeezed by higher prices for groceries — including indulgent treats. London cocoa futures have climbed to the highest since 2016 amid concerns unfavorable weather could tighten supplies.

The EU’s new rules will also apply to products including coffee, palm oil, and soybeans. Aidoo said Ghana’s cocoa crop is compliant with the legislation, and that beans shipped from the country will be able to be traced back to the farm.

“It is in our own interest that we improve and keep protecting the environment within which we produce cocoa,” he said. “Our system has a national identity and improved transparency in the cocoa sector and allows the regulator to scientifically prove the location of farms and veracity of claims of child labor.”

Source: Norvanreports