Ghana’s tree crop sector, particularly the cocoa and oil palm industries, is anxious about an impending vote by the European Union (EU) parliament to either postpone or validate the proposed implementation date for the crucial EU Deforestation Regulation (EUDR).
According to earlier proposals, the regulation was expected to come into force for most companies and organizations trading with the EU bloc from December 30, 2024.
The European Parliament is preparing for a crucial vote next week on November 13 and 14, 2024. The decision will determine whether the enforcement of the law will be postponed or begin as scheduled on December 30, 2024.
This regulation will critically apply to local companies and organizations placing relevant commodities or products on the EU market.
They will need to demonstrate that their products are deforestation-free, not linked to forest degradation, nor illegal harvesting and trade.
The regulation will affect the cocoa, oil palm, cashew, coconut, and coffee sectors, among others.
Ghana and the Ivory Coast are the world’s two largest producers of cocoa, accounting for over half of the global supply, currently at 65 percent – Ivory Coast (45 percent) and Ghana (20 percent).
Production of the cocoa commodity has been linked to heavy suspicions and allegations of deforestation by the EU.
While smallholder associations in Africa and Indonesia say they are supportive and prepared for the December 30 deadline – when the regulation is scheduled to go into force – others say they need extra time or increased government support.
A consensus to delay the regulation, if approved by the EU parliament, may grant another one-year grace period to traders and exporters – up to January 1, 2026.
Excitingly for Ghana, the EU maintains that the cocoa sector is much better prepared for the EUDR than other commodity sectors, since the country and Ivory Coast prioritized a national approach and have long been investing heavily in farm traceability approaches.
However, agriculture sector stakeholders are apprehensive that issues of galamsey, which have thrived in the past few months, may dent Ghana’s quest to make a case when the regulation begins.
Other countries, including Honduras, have reported that millions of smallholders are not even aware of the EUDR, let alone prepared to comply.
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