From Farm to Europe: Strengthening Ghana’s Cocoa Value Chain Through Digital Traceability
Investing in agricultural businesses creates opportunities for job creation, international trade and sustainable development, with benefits for people in both Ghana and Germany. In the context of the government-to-government negotiations between the two countries, a German delegation witnessed firsthand insights into how the private sector, public institutions and digitalisation efforts come together for mutual benefit. And how support by Germany and the European Union contributes to opening European markets for Ghanaian farmers.
Standing amidst the lush green vegetation of Ghana’s “Middle Belt”, a zone covering several regions known as the country's agricultural hub, a delegation from Germany is captivated by the vibrant landscape. A cocoa farmer working in the area, Kwaku Kusi, has one last thing to share before the group that includes members of the German Development Ministry moves on to their next project visit. He invites them deeper into the tropical greenery, where freshly harvested cocoa fruits await. Underneath banana, plantain and other tropical plants, a large pile of cocoa appears in shades of green, orange, and purple..
Cocoa is deeply woven into Ghana’s agricultural economy and rural livelihoods. Much of the cocoa produced here ultimately finds its way to international markets, including Europe, where cocoa beans are processed into chocolate and other products consumed around the world. Half of the world's cocoa harvest is processed and consumed in Europe, making it a critical market for the West African cocoa industry.
For Ghana’s cocoa sector to remain competitive, however, producing a quality crop is no longer enough. Farmers and businesses must increasingly demonstrate where cocoa comes from, how it was produced and whether it meets the requirements of the markets they serve.
To maintain this vital trade, farmers and aggregators must adapt to new European regulations. The European Union Deforestation Regulation (EUDR) is reshaping global cocoa trade. It now mandates that cocoa placed on its market must be fully traceable to its origin. It also requires compliance with local legislation, ensuring safeguards against deforestation and child labor. These regulations also aim to create more sustainable practices while improving farmers' incomes, thereby fostering a more equitable cocoa supply chain.
In response, the Government of Ghana has strengthened the Ghana Cocoa Traceability System. It brings together key elements required to comply with the new requirements such as farmer registration, farm mapping, digital purchasing records and cocoa tagging.
German delegates had the opportunity to witness the system in action during their visit. They explored a local farm and an aggregator's warehouse of the local cocoa wholesale company Eliho Ghana Ltd, serving as a link between cocoa farmers and the Ghanaian cocoa marketing system. Together with farmers, the aggregators play a crucial role in implementing traceability systems to ensure compliance and sustainability.
Germany supports Ghana’s efforts to strengthen sustainable cocoa production, traceability and market readiness. Through the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), on behalf of the German Government and co-funded by the European Union, a digital Ghana Cocoa Traceability System has been developed in compliance with EUDR requirements.
A significant milestone has been achieved with the development and dissemination of standard operating procedures. These guideline documents will serve partners involved on how to effectively implement measures such as traceability systems and ensure compliance with the new regulations. More than 20,000 participants – including government organisations, aggregators, and local farmers – benefited from targeted trainings on traceability systems and awareness campaigns addressing critical issues such as child labour.
The measures implemented have enabled Ghanaian cocoa farmers to meet new international standards, ensuring their livelihoods while maintaining that chocolate made from Ghanaian cocoa can be enjoyed globally. Moreover, promoting local cocoa farming bolsters rural economies, curbs migration pressures, and fosters sustainable development within cocoa-growing communities. Importantly, cocoa farming also plays a pivotal role in addressing challenges such as illegal mining, by providing income opportunities and reducing the economic drivers to engage in environmentally destructive activities.
Read more on how GIZ is supporting sustainable cocoa processing and trade at A valuable harvest | GIZ
The Sustainable Cocoa Programme is a joint initiative funded by the European Union in Ghana and the German Federal Ministry for Economic Cooperation and Development (BMZ), implemented by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH in collaboration with the Ghana Cocoa Board (COCOBOD).
Author: Bosse Alexander Klama
