West African cocoa sector deforestation challenges

The West African cocoa sector is facing significant economic and regulatory challenges driven by environmental concerns and new international laws.

In Ghana, cocoa farmers are experiencing economic pressure as they struggle to balance livelihoods with deforestation prevention. Experts note that many farmers rely on cocoa for roughly 80% of their income, and low productivity often drives them to expand into protected forest areas. This situation is further complicated by illegal gold mining, or ‘galamsey’, which has reportedly destroyed nearly 9,000 hectares of protected forest reserves and draws labor away from the cocoa sector.

On a regional scale, producers in West Africa are preparing for upcoming European Union anti-deforestation regulations scheduled to take effect at the end of December. These rules ban commodity imports linked to forest loss. Because West Africa produces approximately 70% of the world’s cocoa, and two-thirds of that is exported to the EU, compliance is critical. In Nigeria, there are concerns that many of the 300,000 small-scale farmers may fail to meet the EU’s geolocation and mapping requirements. Analysts suggest these compliance difficulties could lead to a supply squeeze in the EU lasting up to two years, potentially increasing costs for chocolate manufacturers.