New EU regulations threaten cocoa supply: Switzerland, the country of chocolate, is in danger

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It’s Switzerland’s brown gold: chocolate. Three of the four bars produced here are eaten abroad. Last year it was 150,000 tons. But the Swiss chocolate paradise is under pressure. Urs Furrer (50), president of the Association of Swiss Chocolate Producers Chocosuisse, says: “In extreme cases, access to the EU market is at risk.”

The threat has a ponderous name, but far-reaching consequences. The EU Deforestation Regulation (EUDR) entered into force on 29 June. Anyone who brings chocolate to the European market in the future will have to trace the entire manufacturing process back to the cocoa plantation. Companies must ensure that no forests have been cut or damaged during production. To verify this, they rely on geolocation. The locations of raw materials such as cocoa are passed on in real time. There’s only one problem. Furrer says: “Such a comprehensive monitoring system does not yet exist.”

The EU is under criticism

The director of the Swiss chocolate manufacturer is in close contact with the responsible EU authorities. “A lot is still unclear.” In Germany, a dozen business associations addressed politicians. In a joint press release they write: “The EU law against deforestation has too many open construction sites.” There is a lack of legal certainty, as the flow of goods would have to be completely reorganized. And those responsible in Brussels have not issued clear implementation guidelines.

Swiss producers will have to adapt to the new regulations if they want to export chocolate to the EU unhindered. Because the EU intends to classify all countries from good to bad depending on the legal situation. The better the quality, the more open the market remains for suppliers. If Switzerland wants to be classified properly, it must introduce a regime similar to that of the EU. If she doesn’t do that, there will be an enormous amount of work involved in declaring the chocolate at customs.

Furrer says: “In the worst case, the EU market for Swiss chocolate would close – and that would be fatal. Because the EU is our largest export market.” Furrer argues for clarity as soon as possible.

Nestlé makes demands of the Bundesrat

Nestlé demands the same. The largest food company in the world produces most of its chocolate in Switzerland. Daniel Imhof (42), head of agriculture at Nestlé, says: “Now the Federal Council must adapt the legislation to the EU as quickly as possible.” Nestlé drew the attention of the Federal Environment Agency (FOEN) to this in February. But the Bafu said at the time that it was too early for that.

From the point of view of business representatives, time is of the essence. Companies and countries now have 18 months to implement the regulation – and that makes chocolate makers sweat. Because in the past such legal adjustments in Switzerland took a long time. In 2013, the EU introduced a timber trade regulation that put Swiss timber exporters at a competitive disadvantage. The economy put pressure on politicians, but it wasn’t until 2022 that the Federal Council approved a similar scheme that removed the downside. Now the chocolate industry fears that the government may wait again.

Two mortal enemies team up

The WWF hits a similar note. For once, the environmental organization and Nestlé are on the same page, albeit for different reasons. Romain Deveze (38), raw materials expert at WWF, says: “We simply cannot afford to wait another ten years.” Deforestation is responsible for a quarter of global greenhouse gas emissions. “Switzerland must send a strong signal that we also care about the climate,” says Deveze.

In Swiss politics, the mills are gradually turning. FDP national councilor Petra Gössi (47) submitted an interpellation in mid-June. She wants to know from the Federal Council what steps it is taking to prevent “trade distortions”. Politicians from all parties have signed the initiative. Now the Federal Council decides on the fate of the Swiss chocolate paradise.

Source:Blick