By Ukumbi Afrika 
Monday, 17 August 2026
West Africa’s cocoa industry is facing mounting pressure to comply with the European Union’s anti-deforestation rules, with industry experts warning that a significant share of cocoa from the region could initially fail to meet the bloc’s requirements.
Nigeria could be particularly exposed. Experts estimate that more than half of the country’s cocoa beans may not be compliant when the EU Deforestation Regulation (EUDR) takes effect at the end of December.
The challenge extends across West Africa, including Ivory Coast, the world’s largest cocoa producer, potentially putting a substantial portion of the region’s exports to the EU at risk.
West Africa produces roughly 70% of the world’s cocoa, while about two-thirds of the region’s cocoa exports are shipped to the European Union.
Traceability Becomes a Major Hurdle
The EUDR requires importers to demonstrate that commodities such as cocoa were not produced on land recently affected by deforestation. Companies must be able to trace cocoa back to the specific farms where it was grown and provide evidence that production complied with relevant laws in the country of origin.
For West Africa’s cocoa sector, dominated by hundreds of thousands of small-scale farmers in remote areas, establishing such traceability is proving costly and technically difficult.
In Nigeria, cocoa exporters are mapping farms and collecting geographical data to keep producers connected to European markets.
Sunbeth Global said it has spent the past three years mapping 124, 000 hectares of farmland, covering about 60, 000 metric tons of cocoa, at a cost of between $30 and $70 per metric ton.
Starlink Global and Ideal, one of Nigeria’s largest cocoa exporters, said it has spent between $40 and $80 per ton mapping and tracing its supply chain since 2023.
Ivory Coast Faces Similar Challenge
The compliance problem is not limited to Nigeria.
Non-profit Trase estimated in a May study that only about half of Ivory Coast’s cocoa can currently be traced back to the farms where it was produced, with the remainder passing through indirect supply chains or multiple intermediaries.
That creates a significant challenge for exporters seeking to demonstrate compliance before the EU rules take full effect.
Potential Premium for Compliant Cocoa
Industry experts expect compliant cocoa to become more valuable if the supply of traceable beans falls short of European demand.
Sustainability consultant and former global cocoa trader Nicko Debenham said EU importers could struggle initially to secure sufficient compliant cocoa from countries such as Nigeria and Ivory Coast.
He estimates that a potential supply squeeze could last around two years, creating an opportunity for exporters that have already invested heavily in traceability and sustainability systems to command premiums from European chocolate manufacturers.
Compliance Costs Pressure Exporters
For cocoa exporters, however, the investment is putting pressure on already-tight margins.
Beyond mapping farms, companies must verify land use, maintain digital records and monitor compliance with labour and environmental regulations throughout complex supply chains.
Sunbeth said it has deployed hundreds of field agents to train farmers and established a 35-person sustainability team working with Amsterdam-based data verification specialist Meridia.
The company said European buyers have so far pushed back against efforts to transfer the additional compliance costs to them.
“The cost-benefit analysis right now is eating into our margins, ” Sunbeth Chief Operating Officer Nzubechukwu Anisiobi told Reuters.
With the EU accounting for a major share of global cocoa demand, disruptions to compliant supply could have consequences beyond West African exporters, potentially increasing costs for European chocolate manufacturers and contributing to higher prices for consumers.
Source: Reuters
Reporting: Ben Ezeamalu & May Angel
Editing: Emelia Sithole-Matarise