The EU regulation on deforestation-free supply chains and PRONATEC’s plan of action

From the end of 2024, the new EU regulation on deforestation-free supply chains will prohibit the importing of cocoa grown on deforested land (deforested since 31.12.2020). While the details of its implementation are still under discussion, it is clear that the EU regulation on deforestation-free supply chains, which was passed by the EU Parliament on 19 April 2023, will have implications for the entire European food industry. What are the main changes and how can we ensure that our cocoa products comply with the new rules?

Under the EU regulation on deforestation-free supply chains that was passed on 19 April 2023, from the end of 2024 food producers will have to prove that the cocoa they use comes from deforestation-free sources. That also puts the onus on the suppliers of cocoa products. They need to make sure they can prove that the methods of cultivation practised in their supply chains are responsible and that they can provide full traceability.

Agroforestry as a natural method of cultivation

In general, we are well placed here at PRONATEC. We know the origins of our cocoa beans very precisely. Approximately 70% of our cocoa beans come from our subsidiary YACAO in the Dominican Republic. Cocoa growing in the Dominican Republic is characterised by what are called agroforestry systems. The cocoa trees are grown in mixed cultivation with other crops and trees that provide shade. That is good for the fertility of the soil, increases resilience to climate change and encourages biodiversity. We can also guarantee that our cocoa is produced without child labour. Nevertheless, we still have to do our homework to make sure that we comply fully with the new legislation.

 Detailed documentation with every container

Specifically, we have to show the right documentation for every container that we import into the EU. It must contain detailed information about the individual smallholders who grew the cocoa in question and details about their georeferenced plots of land. There also has to be legal evidence that local legislation, such as the laws about deforestation, forest management, nature conservation areas and agroforestry requirements, has been complied with.

Due diligence for the whole supply chain

Importers like PRONATEC also have to carry out due diligence in relation to the entire supply chain. That is not just about ensuring that our products don’t include any cocoa from deforested areas. We have to carry out detailed risk analyses for each country of origin to identify potential risks of deforestation and take appropriate measures to minimise those risks. This is where our closeness to our local producers stands us in good stead.

At our online customer event, the PRONATEC INSiGHT on 27 June 2023, we introduced the key requirements of the new law in detail and gave an insight into the main milestones in PRONATEC’s project plan to comply with the EU regulation on deforestation-free supply chains.