Cocoa farmers union predicts ‘humanitarian catastrophe’ under new EU deforestation laws

ANAPROCI, the largest cocoa Farmers Union in Côte d'Ivoire, representing 600,000 cocoa and coffee producers, has rejected the European Union Deforestation Regulation (EUDR), calling it a potential 'humanitarian catastrophe.'

The union also advised its members not to attend a ceremony held earlier this month, organised by the government's regulatory Le Conseil du Café-Cacao (CCC), whom it has accused of not providing sufficient support for the farmers.

In a letter (seen by CocoaRadar) sent by Kanga Koffi, the union president, to EC Agriculture Commissioner Janusz Wojciechowski, the ANAPROCI expressed 'deep concerns' about the new European law that comes into force at the end of 2024 and warned of severe economic and social repercussions for Ivorian farmers, noting that 70% of their cocoa is exported to the EU. 

ANAPROCI advocates for a gradual approach to new legislation, focusing on stakeholder awareness and environmental protection initiatives in partnership with producing communities.

It claims the EUDR will lead to a 'large-scale humanitarian catastrophe' affecting the country's farming communities.

The letter raised the following concerns:

A) Insufficient awareness and difficulties in understanding by the stakeholders, including producers, exporters, processors, and international buyers, of the new law's provisions

B) A significant administrative burden exists for compliance with the new law

C) Complexity of technological data collection systems

D) The high cost of implementing various procedures for compliance with the new law

E) The prospect of non-compliance of a significant part of national cocoa production in Cote d'Ivoire with the new law's provisions

F) Uncertainties in the classification of countries into specific risk categories based on their respective levels of deforestation

Political controversy

The union is also upset with the CCC after it accused the body of manipulating a recent ceremony to honour agricultural workers in Yamoussoukro for political purposes.

At the ceremony, angry farmers accused the CCC of manipulating organising committee members to "distort the ceremony for political purposes." According to local reports, it became a meeting in support of the ruling party, with t-shirts bearing the image of President Alassane Ouattara.

ANAPROCI argued that more serious issues were worrying the country's farmers, including the EUDR and the cocoa producer price set for next October - crucial subjects on which it claims the Ivorian government has remained unclear.

The county's farmers are currently paid $2.50 per kg for mid-crop beans, approximately 50% less than farmers in non-regulated countries. A World Bank report from 2019 estimated that 54.9% of Ivorian cocoa producers and their families live below the poverty line, an exaggeration caused by the recent increase in input prices and transportation costs.

The presidential elections in Côte d'Ivoire are scheduled for October 2025. Current President Alassane Ouattara, who was re-elected in 2020, has not yet announced whether he will seek a fourth term. His potential candidacy remains a significant point of speculation in Ivorian politics.

Ouattara has also remained relatively silent on the country's declining cocoa production, which accounts for 40% of GDP and represents 40% of the world's supply. 

Pressure on the EU over the EUDR

So far, the European Union has resisted calls to delay its flagship policy to fight deforestation. However, the controversy has sparked discussions about the broader issues cocoa farmers face, including low incomes despite high cocoa prices and the impact of climate change on production. 

Both Côte d'Ivoire and Ghana have been vocal about the need for better support for farmers, emphasizing the dichotomy between the profits of chocolate companies and the earnings of the farmers who supply them.

It is estimated that the administration costs for operators to comply with the EUDR legislation are approximately $250, a significant amount for a small producer or farmer.

Marc Donaldson, a cocoa & chocolate expert from On the Ball Consulting, has worked with farmers and producers in Côte d'Ivoire. He said: "In my opinion, there will be a significant shortage of beans around September, [at the end of the mid crop, and the start of main crop] … and there is no incentive for farmers to produce EUDR compliant beans - many of them have no idea or knowledge of EUDR." 

Like Ghana's Cocobod, he said the CCC is unprepared for EUDR; "they are more worried about how they will supply the outstanding beans from the last main crop," which Donaldson estimates at approximately 350 to 4,000 metric tonnes between the two West African countries.

Cocoa production

Barchart.com reported that Ivorian government data earlier this week showed that farmers shipped 1.61 MMT of cocoa to ports from October 1 to July 7, down 29% from last year.

Trader Ecom Agroindustrial projects Côte d'Ivoire's 2023-24 cocoa production, which ends in September, will fall 21.5% year over year to an 8-year low of 1.75 MMT. 

Reuters has previously reported that Ghana is considering delaying the delivery of up to 350,000 MT of cocoa beans to next season due to the country's poor crops.   

Eurostat, the EU's statistical office, also reported that in May 2024, the consumer price of cocoa and powdered chocolate in the EU was 6.3% higher than in May 2023.