Case Study: Liberian Cocoa & EUDR
- Arne Mielken
- Oct 12
- 4 min read
🆓 Cocoa expansion in Liberia drives deforestation. EU importers may soon need to follow EUDR due diligence, risk assessment, and geolocation rules to prevent it.
Ivory Coast, the world’s largest cocoa exporter, has exhausted much of its productive forest area. Decades of intensive cultivation, repeated clearing, and chemical fertiliser use have depleted soils and weakened local ecosystems. Producers are increasingly moving into Liberia, attracted by comparatively fertile and intact forests.
According to the report "ALERT ON THE SUPPLY OF CACAO FROM LIBERIA -How do a combination of factors and players encourage the presence of Liberian cacao in the Ivory Coast supply chain?" from the Independent Cocoa Observer Report - April 2024 (Author IDEF with the participation of ID Cocoa), this expansion presents complex environmental and social challenges, demonstrating how global demand for cocoa interacts with local land use, labour practices, and ecosystem sustainability.
In Liberia’s Grand Gedeh region, cocoa expansion has transformed nearly 500,000 hectares of primary forest into plantations since 2020. Families have ceded plots ranging from 50 to 300 hectares, a dramatic increase from the 8–10 hectares observed in previous years.
The scale of forest clearance is unprecedented. Satellite data shows a yearly average loss of 40,000–50,000 hectares of primary forest, with secondary forests also being cleared to maintain productivity. Habitat loss threatens species such as forest elephants, pygmy hippos, and numerous endemic birds and plants. Soil degradation, reduced water retention, and carbon release are additional environmental consequences.
Socially, the expansion involves labour-intensive land clearing.
Investigators report widespread use of child and adolescent labour, with young people often engaged in hazardous tasks, including forest clearing and pesticide application. Communities face increased vulnerability as traditional livelihoods are replaced by monocrop farming, and conflicts over land access have risen.
Download report
The EU Deforestation Regulation (EUDR)
The EUDR, adopted in 2023, is designed to prevent commodities linked to deforestation from entering EU markets. It covers cocoa, coffee, soy, palm oil, timber, beef, and rubber. For EU importers, the regulation establishes a structured supply chain due diligence framework to mitigate risks associated with deforestation and social harm.
Key components include:
Risk Assessment: Identify sourcing regions with potential deforestation, biodiversity loss, and social violations.
Risk Mitigation: Work with suppliers to reduce risks and ensure compliance with environmental and human rights standards.
Due Diligence Statements (DDS): Document that imported commodities meet deforestation-free and social compliance criteria.
Geolocation Tracking: Map exact production sites to verify legality and prevent the entry of illegally produced commodities.
How EUDR Can Help Combat Deforestation in Liberia
If implemented effectively, the EUDR can provide incentives for deforestation-free cocoa production in Liberia. Importers will be required to source from plantations that comply with legal and sustainability standards. This encourages sustainable land use, discourages illegal forest clearance, and fosters transparency across supply chains.
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Implications for EU Importers
Companies sourcing cocoa from Liberia, in the future, may need to apply the EUDR’s due diligence measures:
Track suppliers and plantation locations through geolocation data.
Conduct comprehensive risk assessments for deforestation and social violations.
Implement mitigation measures with suppliers.
Maintain Due Diligence Statements (DDS) to document compliance.
Non-compliance could result in blocked imports, reputational damage, and legal exposure. The regulation is designed to integrate environmental, social, and supply chain transparency standards into business operations.
Conclusion
Liberia’s cocoa boom highlights the intersection of global trade, environmental conservation, and social responsibility. The EUDR provides a clear framework for managing these risks through due diligence, risk assessment, DDS, and geolocation verification. Applied consistently, it allows EU importers to source cocoa responsibly, mitigating deforestation and social harms, and promoting sustainable production in regions like Grand Gedeh.
How We Can Help
We cover case studies like this in our EUDR training, helping EU importers understand how to apply due diligence, risk assessment, DDS, and geolocation in real-world scenarios. Check out our EUDR trainings at www.customsmanager.org/events
🆓 We, at Customs Manager Ltd, support EU importers in navigating the EUDR through tailored risk assessment guidance, and bespoke compliance advice. Schedule a free call to discuss your supply chain challenges and next steps. Free Expert Call: www.customsmanager.org ⇒ Book Expert Call
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