Ivory Coast Cocoa Traceability Stalls at 48% as EU Deforestation Rules Near

Only 48% of Ivory Coast’s 2024 cocoa exports can be traced back to farming cooperatives, according to Trase.
The EU Deforestation Regulation will require importers from December to prove cocoa was not grown on deforested land.
Ivory Coast supplies just over a third of the world’s cocoa, while the EU buys 66% of its bean exports.

Cocoa Supply Chains Face a Compliance Test

Abidjan is heading into a critical trade deadline with a cocoa supply chain that still has major blind spots.

Only 48% of Ivory Coast’s 2024 cocoa exports can be traced back to the farming cooperatives that grew the beans, according to a new analysis released Tuesday by non-profit Trase. The figure has barely shifted since Trase’s previous assessment two years ago.

That gap now carries direct regulatory and commercial risk. From December, the European Union Deforestation Regulation will require EU importers of cocoa and related goods to prove their products were not grown on deforested land. Companies must also trace raw materials back to the plots where they were produced.

For the world’s largest cocoa producer, that standard is becoming a high-stakes governance challenge. Ivory Coast grows just over a third of global cocoa. The EU is its largest trading partner, importing 66% of the country’s beans.

Indirect Sourcing Limits Visibility

Trase said the traceability gap stems largely from the structure of the cocoa supply chain. Much of the trade remains “indirect” and moves through several intermediaries before export.

“The prevalence of indirect supplies of cocoa and the resulting lack of visibility into its origins makes it very difficult for companies to address issues such as deforestation or child labour,” said UK-based Trase, which maps international trade and financing of agricultural commodities using publicly available data.

For buyers, that lack of visibility is no longer only a reputational issue. It is becoming a market-access risk. Under the EU rules, companies will need evidence that cocoa was not produced on land deforested after the regulation’s cut-off date. That creates pressure on traders, processors and consumer goods groups to strengthen supplier data, farm mapping and due diligence systems.

It also places new demands on producer-country institutions. Ivory Coast’s cocoa regulator did not immediately respond to a request for comment. The country has chosen a digitalised sales and purchasing system to help meet EU requirements and support verification.

EU Law Adds Pressure to Cocoa Trade

The EUDR has been described by supporters as a major climate and biodiversity tool. It targets commodities linked to forest loss, including cocoa, coffee, soy, cattle, palm oil, rubber and wood.

Yet the law remains politically contested. Brussels has already delayed implementation twice. It now faces calls from trade partners to postpone the rules again or reduce their scope.

Brazil, Indonesia and the United States are among the countries that have raised concerns. They argue the system will be costly and difficult to comply with. As part of its trade agreement with U.S. President Donald Trump, the EU committed to work on addressing U.S. concerns about the law.

For Ivory Coast, the pressure is more direct. Cocoa is central to export revenue, rural livelihoods and state policy. A weak traceability rate could expose exporters to shipment delays, higher due diligence costs or reduced access to premium European buyers.

What Executives and Investors Should Watch

For C-suite leaders, the immediate issue is whether cocoa-linked supply chains can produce farm-level data before the EU deadline. Companies that rely on Ivorian cocoa may need to audit their sourcing models, review supplier contracts and invest in stronger verification systems.

Investors should watch how exposed food and consumer goods companies manage this transition. Those with poor visibility may face higher compliance costs and supply disruption. Those with stronger direct sourcing and cooperative relationships may gain an advantage.

The findings also raise a broader ESG question. Traceability is often treated as a technical tool, but it is becoming a test of governance. If companies cannot see where commodities come from, they cannot credibly manage deforestation, child labour or climate risk.

Ivory Coast’s stalled cocoa traceability rate shows how difficult that shift remains. The EU’s deforestation law may be European regulation, but its impact will be felt across African farms, global trading desks and boardrooms far beyond Brussels.