Cocoa: Foder warns about the cost of the EUDR for producers weakened by falling prices

Context of the Day Cocoa producers in Cameroon are facing increasing challenges due to falling cocoa prices, which have been exacerbated by the requirements of the EU Deforestation Regulation (EUDR). According to Foder, this situation could jeopardize the economic viability of many already fragile producers (source: Foder).

Golden Beans Prices and International Market Cocoa prices in Cameroon, according to ONCC, are currently declining. Prices for raw cocoa are set at 3,227 FCFA/kg (CIF) and 3,149 FCFA/kg (FOB). In comparison, the price of arabica coffee is 3,660 FCFA/kg (CIF) and 3,516 FCFA/kg (FOB) (source: ONCC).

Situation in West Africa and Cameroon In Cameroon, the situation is concerning. Cocoa producers, already struggling, now face additional costs related to compliance with the EUDR. This regulation aims to prohibit the importation of products linked to deforestation, which could have consequences for supply chains and production costs (source: Business in Cameroon).

In Ivory Coast, producers are also preparing for significant changes, with forecasts of harvests impacted by unfavorable weather conditions. Local authorities are worried about port congestion due to European regulations, which could affect exports (source: Reuters).

Derivatives and Coffee Regarding cocoa derivatives, prices for cocoa butter and powder remain influenced by fluctuations in bean prices. Transformers must navigate an environment of rising costs, which could affect final prices for consumers. Prices for cocoa butter and cocoa mass are also under pressure, which could influence the margins of processing companies (source: Financial Afrik).

Regulation and EUDR The EUDR imposes strict requirements on producers and exporters, which could further complicate the situation for small producers. While efforts to comply with these regulations are ongoing, documentation preparation remains a major challenge for many players in the supply chain (source: EUDR Commission).

Conclusion The current situation of the cocoa market in Cameroon is concerning, with potential implications for the economic sustainability of producers. The drop in prices, combined with EUDR requirements, poses significant challenges. Sector players must quickly adapt to navigate this evolving landscape.