The challenges of cocoa traceability: Summary
- EUDR requires that cocoa be traceable
- When farmers do not form cooperatives, and when there is no centralised purchasing, it is difficult to trace the products.
- The coxeurs, or middlemen (middlemen), often work without keeping records. This makes it difficult to trace them.
- Supply chains that are complex and multi-layered reduce transparency in the upstream.
- Ground data can help mitigate the limitations of satellite technology
The EUDR (European Union Deforestation Regulation) is looming on the horizon. Chocolate manufacturers need to be prepared to track their product back to its source. The regulation is based on traceability. It is essential to the regulation.
Traceability may be easier to say than do. Traceability can be hindered by the layers and complexity of cocoa’s supply chain.
How can cocoa producers trace the origin of their cocoa?
1. Centralised purchasing is not possible
Cooperatives are often used by cocoa farmers to organise their labour, and act as a link between them and the buyers.
This isn’t always the case. Traceability is much harder when farmers do not have a structured organization.
A Rainforest Alliance spokesperson explains that tracking beans without grouping or cooperating is almost impossible because of the lack support systems.
In the event that they are You can find out more about this by clicking here. Traceability in cooperatives is not easy. Supply chains remain complex.
2. Supply chains are complex.
The supply chains of cocoa can be notoriously complicated. Rainforest Alliance spokeswoman points out that beans and cocoa ingredients are traded many times prior to the final product.
Each transfer increases the number of actors that must engage in traceability efforts.
Further, the suppliers do not always share information about sourcing or recipes.
Effective traceability requires that companies work with all suppliers, not just the first-tier.
3. Coxeurs are present in the presence
They are middle agents who purchase directly from the farmers and deliver them to their suppliers. Coxeurs can sometimes cause problems with traceability.
Rainforest Alliance spokeswoman: “They are focused on maximising profit and volume, so they buy from all farmers, regardless of their location, even those who live in areas that have been deforested.”
This practice is detrimental to traceability. Sometimes coxeurs lack the skills to keep records. In some cases they don’t even record their purchase or where it came from.
The spokesperson suggested that encouraging coxeurs to have transparent practices and incentivizing them for keeping records can assist companies with reducing the problems of traceability they present.
Traceability can be achieved by providing them with tools and training. Fair commercial terms are also available. Digitalising traceability can strengthen accountability, and it will be easier to track the beans to their origin.”
4. Satellite technology has its limitations
Satellite technology allows companies to collect deforestation data from the air and make high-tech estimates.
There are still problems with cloud coverage, poor resolution and collecting data for commodities like cocoa, which, unlike palm trees in large plantations is tucked away within a forest.
The Rainforest Alliance spokesperson explains that satellites have limitations, which can be addressed by combining them with local and ground-based data from government, non-governmental organizations, and other research institutes.
This collaborative data-integration approach can enhance global datasets, and improve confidence in monitoring. Ground-truth verification is essential in all cases to verify satellite-based assessments.