Mondelez Seeks Delay to EU Deforestation Law Amid Cocoa Price Surge

Mondelez International (NASDAQ:MDLZ), the maker of Cadbury, is urging the European Union to postpone the implementation of its deforestation regulation, citing the chocolate industry’s struggle with record-high cocoa prices and ongoing supply disruptions, according to the Financial Times. The EU law, expected to take effect by the end of 2025, would prohibit imports of commodities like cocoa and palm oil if they are linked to deforestation.

Mondelez, which once backed the legislation, now warns that added regulatory burdens could undermine the competitiveness of Europe’s €70 billion chocolate sector. The call for delay comes as cocoa prices remain elevated, having more than tripled recently due to severe weather and crop diseases in key West African growing regions. Although prices have dropped slightly from their peak of over $12,000 per tonne, they are still significantly higher than historical averages.

Meanwhile, major U.S. chocolate companies, including Mars and Hershey (NYSE:HSY), have refrained from supporting the EU’s deforestation rules, diverging from European peers like Nestlé (SIX:NESN), Ferrero, and Tony’s Chocolonely. The Financial Times reports that the decision was partly shaped by the political climate in the U.S., particularly President Donald Trump’s resistance to stricter environmental regulations.

A letter obtained by the FT shows European chocolate firms cautioning that any further delays or weakening of the law could seriously undermine the EU’s environmental agenda. The debate highlights growing tensions between sustainability goals and economic pressures in the global chocolate supply chain.

With the cocoa market under stress and industry players divided, the future of the EU deforestation law remains uncertain, as regulators balance environmental responsibility with business realities.