The European Union Deforestation Regulation (EUDR) introduces new requirements for cocoa producers and exporters to demonstrate that their products are deforestation-free and legally produced. For Ecuador, one of the world’s leading cocoa producers, these requirements present both challenges and strategic opportunities.
Through this assessment, MosaiX and Inovasi Digital examine Ecuador’s cocoa sector through the lens of deforestation risk, land legality, and traceability readiness, with the aim of helping stakeholders better understand where the key risks lie and what actions are needed to remain compliant with EUDR standards.
Key Challenges Facing Ecuador’s Cocoa Sector
Cocoa production in Ecuador is deeply linked to rural livelihoods and national export performance. However, long-standing issues such as informal land tenure, limited plot-level traceability, and increasing deforestation pressure create significant compliance risks under the EUDR.
As EU market access increasingly depends on verifiable data, including farm coordinates, land legality, and deforestation history, understanding the current risk is essential for policymakers, exporters, traders, and sustainability teams.
Scope of the Assessment
This assessment focuses on five core areas:
- Cocoa planted area distribution across Ecuador and key producing provinces
- Land legality and registration status, comparing registered and unregistered cocoa land
- Deforestation risks after the EUDR cut-off date (31 December 2020)
- Overlaps between cocoa plantations and protected forest reserves
- Practical due diligence and traceability workflows to support EUDR compliance
The analysis combines official government datasets with satellite-based deforestation monitoring and geospatial mapping tools.
Key Findings at a Glance
Several findings stand out:
- Approximately 92% of cocoa-planted areas in Ecuador are unregistered, highlighting a major land tenure documentation gap.
- 185 cocoa plots overlap areas deforested after 2020, presenting potential EUDR compliance risks.
- 184 cocoa plots, covering more than 500 hectares, overlap with protected forest reserves.
- National deforestation rates have accelerated sharply since 2021, increasing overall risk exposure for forest-linked commodities, including cocoa.
- While cocoa is not the primary driver of large-scale deforestation, localized risks and hotspots require targeted monitoring and mitigation.
Why These Findings Are Important
EUDR compliance goes beyond detecting deforestation. It also depends on:
- Clear land legality and documentation
- Accurate plot-level geolocation
- Continuous monitoring over time
- Transparent and reproducible due diligence processes
Without addressing land tenure informality and data gaps, even responsible producers may struggle to demonstrate compliance to buyers and regulators.
From Risk to Readiness
The report outlines a practical, repeatable due diligence workflow to help supply chain actors move from risk identification to EUDR readiness, including:
- Building reliable plot registries
- Conducting deforestation and protected area screening
- Strengthening legality files for smallholders
- Applying risk-based monitoring and mitigation
- Using digital tools to support traceability and reporting
These steps translate regulatory requirements into actionable processes on the ground.
Access the Full Report
For the full context, data, and analysis behind these findings, explore the complete assessment below.
📄 Download the full report:
Ecuador Cocoa EUDR Assessment (PDF)