Services
Traceability & Regulation
The FCC is undertaking a new service for its members. This is a series of articles, to be published monthly concerning ‘Traceability and Regulation’. This subject is one that is to the forefront of many in the form of the European Union Deforestation Regulation (“EUDR”), but which affects many outside of the EU. In fact, FCC members outside of the EU may find that EUDR affects them as the price of the onward sale of their cocoa and cocoa products may need to comply with EUDR. In a world that is changing "the business as usual" we hope to be able to keep our members informed in an environment of differing interpretations of the regulations criteria and political rumours about delays and changes.
In addition to EUDR, in the pipeline there are additional regulations concerning Corporate Sustainability Reporting Directive (“CSRD”), and Corporate Sustainability Due Diligence Directive (“CSDDD”) which affects goods entering the EU. Members should note, this pipeline may be quite short.
The EU is not the only region or country that will, effectively, require traceability of cocoa beans and cocoa products. The UK is introducing Forest Risk Commodity Regulation. Switzerland, Japan, Australia and, of course, the USA are doing similar. All will require compliance, as a minimum, on which farm(s) the cocoa was grown, and that the farms comply with the regulations.
The FCC Contract terms are intended to be used throughout the world to allow the free trade of cocoa beans and cocoa products. To assist, there is a robust FCC Arbitration service on which market participants may obtain redress in case of need. As part of the service to its membership, these articles are intended to inform members of the impending regulation and to alert all trading on our market of what changes are coming our collective way.
These articles will be written by Nicko Debenham of Sustainability Solutions Ltd. Nicko is a well-respected expert in this field as well as having an extensive experience of cocoa trading, especially in west Africa. FCC members will have first sight of the articles for one month before they will be published on our website.