The UKFRC & UKCC: EUDR 2.0 Lite? | #PSC 192
Episode 192 of #PodSaveChocolate takes a look at the recent formation of the UK Cocoa Coalition, which hopes to influence the implementation of the UK Forest Risk Commodities regime. OR, is it Brexit-induced EUDR FOMO?
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Episode 192 Overview
This episode of #PodSaveChocolate takes a look at a story that exploded in my feeds on Monday, March 30th (much of the information is behind registration paywalls, but I was able to retrieve it using other means):




Some detail on the UKFRC (registration “pay”wall).

Topics
- What are the UK Forest Risk Commodities Regulations? Goals? Status?
- What is the UK Cocoa Coalition? Who are its members, and what is its mission?
Members include major chocolate manufacturers (Barry Callebaut, Ferrero, The Hershey Company, Tony’s Chocolonely), large UK retailers (e.g., Sainsbury’s, Marks & Spencer, Waitrose), and prominent NGOs and trade bodies (Rainforest Alliance, Fairtrade Foundation, WWF, International Cocoa Initiative, IDH, VOICE Network, among others).
One of the key framings (in the announcement and reporting) is that “sustainability is no longer a competitive differentiator but an industry baseline.” That is a normative statement from industry and civil society that regulations like UKFRC/EUDR are becoming table stakes for market access and brand legitimacy, particularly for cocoa.
- How is the UKFRC different from (and the same as) the EUDR?
UKFRC: Cattle products (beef and leather; dairy excluded), cocoa, palm oil, soy. Products derived from these commodities are also covered (including “waste” and by‑products). Timber is excluded here because it is handled under separate UK timber rules.
EUDR: Wood and wood products, soy, beef, palm oil, cocoa, coffee, rubber; plus a wide range of derived products (e.g., chocolate, leather, paper, some furniture).
UKFRC: Targets large, high‑volume UK users. Size threshold: global annual turnover > £50 million. Volume threshold: use of more than 500 tonnes/year of each in‑scope commodity; those using ≤500 tonnes may apply (not automatically) for an exemption. Covered activities include: producing, manufacturing, processing, distributing, selling, supplying, or purchasing covered commodities and derivatives as part of UK commercial activity (irrespective of the consumers’ location(s)).
EUDR: Applies to operators and traders placing covered commodities and products on, or exporting them from, the EU market. There is no turnover or tonnage de minimis; instead, SMEs get somewhat simplified obligations, but they are still in scope. The obligations cascade across the supply chain (importers, manufacturers, traders), creating a wider net than UKFRC’s current design.
UKFRC: Affected businesses must implement a documented due diligence system and publish an annual report. That system must a) gather information on origin and supply chains; b) assess the risk that local land‑related laws were not complied with; c) take mitigation steps to address identified risks; and d) report annually on the system and its findings.
EUDR: The EUDR’s due diligence model is significantly more data‑heavy: Operators must collect geolocation coordinates at the plot level for all production areas supplying the regulated products. They must conduct risk assessment and mitigation that explicitly considers both deforestation risk and legal compliance. This makes the EUDR both more intrusive and more technologically intensive than UKFRC, and it pushes supply chains toward granular, plot‑level traceability.
UKFRC: Because implementing regulations are not in force, enforcement is still a designed but not fully detailed architecture. Legal analyses anticipate: Civil sanctions, including an unlimited monetary civil penalty for serious breaches, plus tools like stop notices and enforcement undertakings, and possible publication of non‑compliance; Targeted criminal sanctions for certain failures (e.g., failure without reasonable excuse to keep/supply required information); and Investigatory powers for the enforcement authority (expected to be the Secretary of State/DEFRA and designated agencies), including entry to premises, inspection of records, and potential seizure of products. But until secondary legislation is laid, these remain intentions, not fully specified rules.
Under the EUDR, Member States must provide for penalties that are: Effective, proportionate, and dissuasive, including: Fines up to 4% of EU turnover; confiscation and/or destruction of non‑compliant goods; exclusion from public procurement; potential market‑access restrictions or bans.

One source.



- What is the overlap with the recently announced TogetherCocoa foundation?
Adapted from above: [the UKCC plans to lobby UK regulators to] use the UKFRC as a lever to support farmer livelihoods, address human‑rights violations, in the process of tackling illegal deforestation.

- Who benefits financially? Who foots the costs of compliance?
Farmers will not benefit unless specific targets that provide living wages are implemented in the regulations. (Which may not be legally enforceable in countries like Ghana.)
Who will foot the bill? Ultimately, consumers, taxpayers, and farmers.
- Can the UKFRC, like the EUDR, be considered a form of economic imperialism?
- Is it too little, too late?
- Is it the (or even a) right thing to do?
Related Reporting

The formation announcement of the TogetherCocoa Foundation is covered in this episode.
Future Episodes
A conversation with Shawn Askinosie on the 20th anniversary of our first bean sourcing trip (to Mexico and Venezuela).
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#PodSaveChoc #PSC
#LaVidaCocoa #TheChocolateLife
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