Ecuador’s Journey Towards EUDR Readiness in the Cacao Sector

Ecuador stands as one of the region’s leading agricultural producers, renowned for its high-quality cacao. With the European Union’s Deforestation-free Regulation (EUDR) set to take effect at the end of 2025, the country is working to align its production with the regulation’s standards and meet the growing global demand for sustainably sourced products. Achieving this goal requires the implementation of targeted policies that promote sustainability and strengthen the economic resilience of farmers.

In this context, initiatives such as the project “EUDR National Risk Assessment and Capacity Building for the Implementation of Due Diligence Systems in the Cacao Supply Chain” – implemented by Preferred by Nature and funded by the Sustainable Agriculture for Forest Ecosystems (SAFE) project – are playing a key role in preparing Ecuador’s cacao sector for a sustainable future.

Ecuador is home to vast areas of forest, particularly in the Amazon and coastal regions. However, deforestation remains a pressing challenge, driven by agricultural expansion, illegal logging and the exploitation of natural resources. As one of the region’s leading agricultural producers, exporting bananas, coffee, flowers and cacao in particular, the country is at a critical juncture. Cacao production is deeply woven into Ecuador’s economy and culture, providing livelihoods for around 5% of the economically active population. In 2023, Ecuador consolidated its status as the leading exporter of fine-flavoured cacao in the Americas. However, cacao is cultivated in biodiversity-rich areas with high carbon storage potential, regions that also face ongoing deforestation risks.

Preparing for the EUDR

From September 2023 to February 2025, the project “EUDR National Risk Assessment and Capacity Building for the Implementation of Due Diligence Systems in the Cacao Supply Chain” was implemented by Preferred by Nature and funded by the Sustainable Agriculture for Forest Ecosystems (SAFE) project. The project aimed to prepare Ecuador’s cacao sector to comply with the European Union Regulation on Deforestation-Free Products (EUDR).

The project was structured around the following action areas:

EUDR Risk Assessment in Ecuador’s Cacao Supply Chain – An in-depth analysis of deforestation, legality, and traceability risks, taking a regional and cross-sectoral approach aligned with the EUDR.
Training and Capacity Building – Training stakeholders from the public and private sectors, as well as civil society, on EUDR requirements, traceability, and due diligence processes.
Due Diligence Pilots with Smallholder Organizations – Partnering with Fundación Terra 360, WWF, and CODESPA to work with smallholder organizations across multiple regions to assess risks, document processes, and apply mitigation plans
Simulated EUDR-Compliant Trade Transactions – Testing Due Diligence Systems (DDS) during the pilot phase with export-oriented organizations.
Toolbox for EUDR Adaptation – Creating a practical guide and technical tools to support more actors in achieving compliance.

A Collective Effort and a Vision for the Future

On 21 July 2025, the project’s closing event brought together representatives from government institutions, private companies, smallholder organisations, NGOs, and international partners. It served as a space for dialogue and shared ownership, where achievements, field experiences, and technical resources – developed alongside cacao value chain actors – were presented.

Smallholder organisations, from both the cocoa and coffee sector, participated from around different regions such as Sucumbíos (APROCEL and APROCASH), Napo (Kallari and Waylla Kuri), Orellana (Alto Huino Community), Guayas (UNOCACE), and Esmeraldas (e.g. UOPROCANE, APROCANE, FONMSOEAM, and REDESCOPE).

The event featured participatory activities, a roundtable and a panel discussion with organisations and implementing partners. These provided an opportunity to reflect on the challenges and opportunities involved in sustaining and expanding EUDR preparedness. The core message was clear: meaningful and lasting compliance requires coordination, political will, robust grassroots organisation and locally tailored tools.

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The Toolbox: Public, Practical, and Adaptable

One of the main outcomes of the project is the Toolbox for EUDR Adaptation, showcased during the event in an interactive thematic station circuit. This toolbox contains resources designed to support producer organizations, exporting companies, field technicians, and public institutions in understanding the EUDR, conducting risk assessments, planning mitigation strategies, and applying due diligence processes and systems.

Although designed for the cacao sector, the Toolbox can also be adapted for other EUDR-regulated value chains, such as coffee, timber, or palm. Two coffee organisations were included in the pilot phase, proving its versatility.

Access the Toolbox:

The EUDR Toolbox is available for public use. If you wish to explore it or use its resources, visit: