Chocolate giants back UK regulation to help small farmers as deforestation rules bite

Chocolate giants back UK regulation to help small farmers as deforestation rules bite.

Cocoa prices quadrupled to $12,000 a tonne by the end of 2024, only to drop back to pre-hike levels. Millions of smallholder farmers grow 80%-90% of the world's cocoa. The latest edition of the annual Chocolate Scorecard dedicates a whole section to what it calls the chaos of the chocolate sector. The UK Cocoa Coalition has been set up to push for the introduction of the UK Forest Risk Commodities Regulation (UKFRC). The coalition brings together leading traders, manufacturers and retailers with a UK footprint, including Ferrero, The Hershey Company, Barry Callebaut, Tony's Chocolonely and Marks & Spencer, alongside NGOs such as the Rainforest Alliance and the Fairtrade Foundation.

The regulation is part of the Environment Act 2021, but has been ignored by successive governments. It will impose a requirement on importers, processors, and retailers of "forest-risk commodities" to prove that they are not linked to illegal deforestation. Secondary legislation is required to make the regulations operational. It is expected to apply to businesses that import over 500 tonnes of key "forest-risk commodities" per year. According to a government statement in 2023, these would include cocoa, though the coalition is seeking confirmation that cocoa will be included.

Belinda Borck, public affairs lead at Tony's Chocolonely, says, "Companies can't solve illegal deforestation and ongoing human rights violations alone, but with strong, aligned legislation, we can shift the system together." The coalition wants to avoid over-burdening smallholder farmers with the cost of compliance by sharing responsibility across the supply chain. Owen Gibbons, senior manager for global advocacy and public affairs at Rainforest Alliance,