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The global cocoa trade is on the cusp of transformation with the introduction of the European Union Deforestation Regulation (EUDR). This landmark policy, effective from 2025, mandates that cocoa imports into the EU must be deforestation-free, creating both challenges and opportunities for Ghanaian smallholder farmers.

As one of the world’s leading cocoa producers, Ghana’s economy and the livelihoods of rural communities are deeply tied to cocoa cultivation. This regulation, while promoting environmental sustainability, also introduces significant hurdles for farmers reliant on cocoa production for daily sustenance.

The Role of CERSGIS in Addressing EUDR Challenges

To help smallholder cocoa farmers navigate this regulatory shift, the Centre for Remote Sensing and Geographic Information Services (CERSGIS) is conducting an extensive data-driven research initiative. This effort aims to:

• Collect 20,000 geocoded polygons representing cocoa farms.
• Gather an additional 20,000 data points on critical land cover types, including artisanal gold mining sites, oil palm and rubber plantations, and areas of degraded forest.
• Conduct 4,000 household surveys to provide insights into the socio-economic factors influencing land use decisions.

This project, funded by the Lacuna Fund and World Resources Institute (WRI) with technical support from NASA’s Science Coordination Office (SCO), focuses on creating comprehensive reference datasets. These datasets will be crucial for developing machine learning (ML) and artificial intelligence (AI) tools capable of monitoring land use changes, enabling more accurate environmental assessments.

Key Implications of the EUDR

The EUDR’s requirement for deforestation-free cocoa supply chains aims to combat global deforestation. However, its implementation poses significant challenges for smallholder farmers in Ghana, including:

• Limited Access to Digital Tools: Many farmers lack the technology needed to prove compliance.
• Insecure Land Tenure: Unclear land ownership complicates traceability.
• Insufficient Financial Resources: Farmers may struggle to implement required changes without external support.

Without proper interventions, these barriers could negatively impact market access and livelihoods, particularly for smallholder farmers.

Data Collection Approach

• To address these challenges and better understand the implications of the EUDR, CERSGIS is focusing on:
• Collecting geocoded reference polygon data at the farm level.
• Addressing land tenure security and documentation issues.
• Assessing current farming practices and farmer awareness of the EUDR.
• Evaluating access to financial resources and support mechanisms.
• Exploring alternative livelihood options and adaptation strategies.
• Understanding farmer well-being and socio-economic conditions.

Insights from this data will guide stakeholders in supporting smallholder farmers as they transition to sustainable cocoa production while maintaining their economic well-being. Pathways to Sustainability and Compliance A coordinated strategy involving government agencies, industry stakeholders, and development organizations is essential to support Ghanaian cocoa farmers in meeting EUDR compliance. Key recommendations include:

• Education and Outreach: Informing farmers about EUDR requirements and sustainable farming practices.
• Land Documentation Support: Addressing challenges related to land tenure to improve traceability.
• Incentives and Grants: Providing financial support to enable farmers to adopt sustainable practices.
• Technological Solutions: Leveraging digital tools to monitor land use and ensure compliance.
• Farmer Cooperatives: Encouraging collective action to strengthen compliance capacity and share resources.

Moving Forward The final outputs of this initiative will serve as a vital resource for shaping policies that balance environmental sustainability with the economic realities of smallholder cocoa farmers. As Ghana navigates this regulatory landscape, collaboration among stakeholders will be crucial to ensuring an inclusive and equitable transition. Through data-driven insights and coordinated efforts, Ghana’s cocoa sector can thrive in a sustainable, deforestation-free future while securing livelihoods for its smallholder farmers.