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Investing.com-- Mondelez International (NASDAQ:MDLZ) is pushing for another delay to the European Union’s deforestation law, warning that the chocolate industry is already grappling with record-high cocoa prices and supply shocks, the Financial Times reported on Friday.
The law, due to take effect at the end of 2025, would ban imports of commodities such as cocoa and palm oil if linked to deforested land.
Cadbury owner Mondelez, which had previously supported the legislation, said further regulatory hurdles could threaten the competitiveness of the €70 billion chocolate industry, the report stated.
U.S. chocolate makers Mars and Hershey (NYSE:HSY) have recently opted not to join European peers like Nestle (SIX:NESN) and Ferrero in signing letters supporting the EU deforestation law, according to the report.
The move was partly influenced by U.S. President Donald Trump’s opposition to environmental regulations, FT reported, citing sources involved in drafting the letters.
Cocoa prices have more than tripled in recent months due to adverse weather and crop disease in West Africa. While prices have eased from peaks above $12,000 per tonne, they remain historically high.
In a letter seen by the FT, European chocolate makers, including Ferrero, Nestlé, and Tony’s Chocolonely, warned that any further delays or changes to the deforestation law would seriously weaken one of the EU’s key environmental policies.