Cocoa price collapse threatens EU deforestation compliance

The volatility has hit producers hard, forcing Ghana to slash wholesale prices by nearly 30 percent. The state-run industry body COCOBOD now faces a liquidity crisis, owing roughly €800 million to local farmers as global stockpiles swell. Traders anticipate a surplus of 365,000 tonnes for the 2025/26 season, a sharp reversal from the record-breaking highs that once encouraged investment in compliance systems.

Despite these economic headwinds, Ivory Coast, Ghana, Nigeria, and Cameroon continue to implement mandatory tracing regimes. These four nations account for 75 percent of global supply, yet readiness varies significantly. In Nigeria, industry experts warn that fewer than half of the country’s 300,000 small-scale farmers currently possess the documentation required to satisfy EU standards. As the December deadline approaches, the transition poses an existential threat to a sector that serves as the foundation for the $150 billion global chocolate market.