Major chocolate producers have welcomed new European Union rules that protect forests, but risk further affecting consumers’ pockets, reports Bloomberg, citing Agerpres.

The European Union is introducing laws to ensure that raw materials such as cocoa, coffee and palm oil are not grown on deforested land, and is also taking action to tackle issues such as child labor in supply chains.

Companies such as Lindt & Spruengli AG, Ferrero SpA and Unilever Plc support these measures because they benefit millet and those who grow these crops. But for shoppers who increasingly want to know where their food comes from and whether it’s ethically produced, the initiative could mean additional costs.

Where does the cocoa from the chocolate on the shelves of European supermarkets come from

Ghana, the second-largest cocoa producer, has already warned buyers that they should be prepared to pay more for cocoa beans because of the investment needed in systems to trace the beans back to the farms where they come from.

That could mean higher prices for everyday staples such as chocolate bars and shower gel, which European consumers already pay more for due to inflation, with data from last year showing Europeans are more cautious when it comes to spending on sugary treats.

“Obviously, it’s an investment that needs to be made,” said Ferrero Group Institutional Relations Vice President Francesco Tramontin. He clarified that Ferrero, the maker of Kinder chocolate, already has a tracking system in place on the farms from which it buys its cocoa beans.

Premium chocolate maker Lindt, which has also welcomed the new rules and insists they comply, declined to comment on the potential impact on consumers.

New deforestation rules are coming into effect, but companies have until the end of next year to comply.

Cote d’Ivoire and Ghana, which provide two-thirds of the world’s cocoa production, must set up special systems to comply with EU requirements, such as geotagging the land from which the relevant products were harvested.

Chocolate producers support efforts to combat deforestation around the world

Unilever, which uses chocolate for its ice cream and buys cocoa beans in Ghana through processor Barry Callebaut AG, says “the planet desperately needs” such measures and that they will level the playing field in Europe.

“I think Ghana is right to ask everyone to pay more, as we do,” said Unilever’s food director Hanneke Faber.

Unilever pays more to ensure raw materials are produced without deforestation or slavery, she said.

Cocoa beans are currently tracked through voluntary sustainability programs run by each individual company. Each program has different criteria and is not controlled by national governments.

Francesco Tramontin says the industry needs sustainability standards at policy level, “otherwise we will only have companies certifying their own supply chain, which will be good in terms of getting cocoa in Europe, but we won’t have the impact that everyone wants.” . .

Although some firms say the compliance process is already in place in their systems, analysts warn that this will affect profitability.

For example, analysts at Barclays Plc estimate that the compliance process adopted by cocoa bean processor Barry Callebaut will have an impact of about 9% on the company’s operating profit in 2023.