UK Chocolate Giants Back Forest Law for Cocoa Supply Chains

Several major chocolate companies — including Ferrero, The Hershey Company, Barry Callebaut, Tony’s Chocolonely, and Marks & Spencer — have joined forces with NGOs such as the Rainforest Alliance and Fairtrade Foundation to form the UK Cocoa Coalition, advocating for the UK to enact its long-delayed Forest Risk Commodities Regulation (UKFRC), part of the Environment Act 2021.

This coalition seeks mandatory due diligence in cocoa supply chains to prevent illegal deforestation, align the UK framework with the EU Deforestation Regulation (EUDR), and avoid overburdening smallholder farmers by sharing compliance costs across the supply chain.

Source: Reuters

Deforestation-Free Products: An EU Regulatory Update

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How Should Global Traders Respond?

Trusted e-Marketplace to Navigate Changing Regulatory Environment

How Should Global Traders Respond?

The coalition emphasizes that smallholder cocoa farmers — who are especially vulnerable to market volatility — must not be burdened by compliance costs. They call for guidance, financial and technical support, and transparency throughout supply chains to protect these farmers and encourage sector-wide reform.

This calls for global suppliers’ and buyers’ attention to take the following into account:

Regulatory Alignment Matters: Harmonizing UKFRC with EUDR helps streamline compliance for companies operating in both regions, reducing duplicative efforts and associated costs.
Support Smallholders Proactively: Buyers should invest in financial, technical, and traceability support systems. Smallholder resilience ensures stable supply and protects against market shocks.
Traceability as Strategic Asset: Implementing robust monitoring such as GPS-based mapping and due diligence protocols not only meets regulatory mandates but reinforces credibility with consumers and partners.
Seize First-Mover Advantage: Companies that proactively align with evolving regulation while championing smallholder welfare can build brand trust, reduce risk, and shape sustainable sourcing norms.

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