Impact of the European Union anti-deforestation regulation on ecuadorian cocoa export costs: proposed strategies

Abstract

Introduction: The study analyzed the impact of the European Union Deforestation Regulation on the export costs of Ecuadorian cocoa to the European Union in 2024. The mixed-methods approach was adopted from a pragmatic standpoint, embracing the principle of complementarity. Objective: to develop cost-reduction strategies to mitigate the effect of the European Union Deforestation Regulation on the export costs of Ecuadorian cocoa to the European Union in 2024. Method: The research combined empirical methods: surveys and analysis of official databases; with theoretical approaches: historical-logical analysis, analytical-synthesis, and modeling techniques. Results: The results showed that the regulation increased total export costs by 102.22 % per ton, from USD 2,330.06 to USD 6,733.90 with critical impacts on agricultural production at 150 % and sourcing at 187.50 %. Soil preparation, annual audits, and digital traceability accounted for 84 % of additional costs. Conclusion: In response, activity-based costing enabled the design of effective strategies, including shared producer certification, collaborative digital platforms, group audits, and internal staff reallocation. The study concludes that gradual implementation of these measures, supported by trade associations and public policies, mitigates regulatory cost impacts while preserving Ecuadorian cocoa’s competitiveness in the European market.