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Multilateral Development Banks for Global Public Goods - Good Practices

Mitigating trade barriers due to high cadmium levels in cacao

Start & End Date: 2018-Ongoing

Country/Countries: Colombia, Ecuador

Multilateral Institution(s) Involved: Food and Agriculture Organization, World Organisation for Animal Health, World Health Organization, World Trade Organization, World Bank

The EU has established limits on cadmium (Cd) in cacao-derived products. The limits entered into force on January 1, 2019. On 2 July 2018, the Codex Alimentarius Commission has also defined limits for contamination of naturally occurring contaminants found in chocolate. The state of California has agreed in February 2018 on even stricter Cd limits for chocolate products under Proposition 65, above which consumers will be warned through product labelling. These limits mainly affect the cacao sector in the Andean Region, the reason being that the soils are naturally more enriched in Cd compared to that in other cacao producing regions. Surveys of the extent of Cd concentrations in the beans are indicative that 30-50% of the beans may not be accepted unless blending of high Cd with low Cd bean is made. The local institutions are not prepared to cope with the new standards, neither on surveillance nor on implementing good agricultural practices. This project is a response to the concerns expressed by cacao stakeholders in the Andean region. The limits are set on the final product and not on the cacao beans which gives an advantage for short-term solutions i.e. blending of cacao beans with high and low Cd concentration. However, such countermeasures can only be achieved if reliable site-specific information are available. For example, digital maps on spatial distribution of soil and bean Cd are accessible for Ecuador but are still needed in Colombia; this will be partly accomplished through this project. Longer term solutions are needed to decrease the Cd in the beans which, at the same time, will increase consumer acceptance and avoid that the demand for cacao produced in the Andean region decreases.

The aim of this project is to improve the institutional capacity of Colombia and Ecuador to manage Cd concentrations in cacao and cocoa products to comply with the European Union (EU) Regulation EC No. 1881/2006 and the Codex limits of naturally occurring contaminants found in chocolate, using a regional approach. The aim of this project is to improve the institutional capacity of Colombia and Ecuador in managing cadmium concentrations in cacao to mitigate the trade barrier imposed by the new standards, using a regional approach. Specifically the project will (1) harmonize methods for cacao sampling and measurement of cadmium levels in cocoa and soils according to international standards; thereby preparing the countries for adequate inspection and potential certification/accreditation programs; (2) improve mapping baselines and mapping capacity for zoning of vulnerable areas in the two countries, based on harmonized methods and data on cadmium levels in cacao beans; (3) develop scientifically sound and context-relevant guidelines on good agricultural practices that lower cadmium levels in cacao. KU Leuven will be the Principal Project Implementer and Coordinator with overall responsibility for the project. For the implementation of the project KU Leuven has sought support of the following subcontracting agencies: CIAT, ESPOL, Wageningen University and AGROSAVIA. In its capacity KU Leuven will ensure that the project is properly implemented by the subcontracted organizations. This includes accountability to the STDF and other in-kind donors regarding technical, administrative and financial management of the project. KU Leuven will receive regular progress reports from the CIAT, ESPOL, Wageningen University and AGROSAVIA and after review, will submit a consolidated report to STDF and other donors. KU Leuven is the largest university in Belgium.

The expected impact of the project is that the cacao sector in Colombia and Ecuador can remain competitive, maintain its current area of production and even expand it. It is hoped that the growth of the cacao sector will translate in an increase of employment rate in the sector and a reduction of poverty particularly in rural areas.

Source and further information

https://www.standardsfacility.org/PG-681
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GPG Theme

Fair international trade system

GPG Sub-theme

Free, open, and fair trade

ODA Sector

Trade Policies & Regulations

Region

Latin America & Caribbean

Income Group

Upper middle income