Ghana’s forest area decreased by about 20% between 1990 and 2010 and the decreasing rate has remained unchanged without any significant recovery. Analysis performed using satellite images and AI (artificial intelligence) has revealed that cocoa production accounts for at least 13% of the cause of deforestation in Ghana’s protected areas. Nevertheless, small-scale farmers largely carry out cocoa production in Ghana, and low productivity is thought to be a driver of the deforestation.

Under the European Union Deforestation Regulation (EUDR), issued in 2023 to prevent forest destruction and degradation, only cocoa and cocoa products that do not involve deforestation or degradation will be allowed to be traded in the EU market. This trend is expected to spread globally, including to Japan, in the future.

We will digitize the information of cocoa producers and mapping out their production areas. We will able to confirm whether target cocoa is produced outside of the protected areas where cocoa farming is not allowed. We will establish traceability by attaching QR tags to jute bags of cocoa at purchase, allowing manufacturers and consumers to access information on cocoa producers and production areas.

By supporting producers’ cooperatives in activities aimed at enhancing the quality of cocoa beans and seedlings, the company is able to maeket high-quality, forest-friendly cocoa and chocolate as high-added-value products, passing on the savings to producers through the payment of a premium. This approach contributes leading to enhance cocoa productivity and livelihoods of farmers.

Cocoa produced within protected forest areas will not be subject to trade, meaning management capabilities against illegal logging within the protected areas will be refined.

Alongside the enhancement of productivity and the addition of value through the distribution of seedlings and improvements to cocoa bean processing, premium payments are expected to boost livelihoods, which would reduce pressure on forest destruction.