Cocoa traders call for delay of the EU environmental regulation to avoid supply chain impacts

Amid a growing chorus of criticism, major cocoa traders have called on the European Union (EU) to delay the implementation of a new environmental regulation aimed at combating global deforestation. The request was made in a letter to European Commission President Ursula von der Leyen by the European Cocoa Association (ECA), representing major players in the market such as Barry Callebaut and Cargill Inc. The new legislation, known as the European Deforestation Regulation (EUDR), is scheduled to come into force on December 30, but traders are calling for an extension of at least six months during the transition period. According to the ECA, the lack of clarity regarding key elements of the regulation makes efforts to adapt and comply with its requirements extremely uncertain. The ECA’s letter comes at a delicate time, just a week after German Chancellor Olaf Scholz expressed concerns about the impact of the regulation. Countries such as Brazil, Indonesia and Malaysia, major ...