The EU Deforestation Regulation and Cocoa: What’s the Impact?

The introduction of the EU Regulation on Deforestation (EUDR) has significant implications for the cocoa supply chain, as it can impact production, prices, trade patterns, and ultimately farmers' incomes The EUDR aims to minimize deforestation and forest degradation caused by EU consumption, requiring importers to demonstrate that cocoa raw materials and other products are not associated with deforestation or forest degradation This regulation could lead to drastic changes in global trade patterns, as producing countries may or may not adapt to comply with the EUDR The study develops a global market and bilateral trade model for cocoa and cocoa semi-finished products to investigate the potential repercussions of the EUDR.