Beyond Compliance: How Digital Traceability Is Future-Proofing Mexican Cocoa
- Gusi Ayu Putri Chandrika Sari
- May 30
- 7 min read
Editor's Note:
Cocoa is more than a crop in Mexico; it’s part of the country’s cultural soul. But farmers today are navigating mounting challenges, from erratic weather to stricter trade rules. In this article, we explore how Koltiva is partnering with smallholders in Chiapas and Tabasco to help them adapt, grow sustainably, and stay connected to global markets. Through traceability tools, on-the-ground training, and a strong focus on transparency, we’re supporting farmers to protect both their livelihoods and the land they depend on.
Executive Summary
Mexico’s cocoa sector faces its worst crisis in 50 years due to climate change, disease, and declining yields. Yet, with global cocoa shortages driving record prices, the urgency to invest in sustainability and traceability offers Mexican producers a chance to reposition fine-flavour cocoa as a premium, resilient source in volatile markets.
The EU Deforestation Regulation (EUDR) demands deforestation-free, legally produced, and geolocated cocoa, posing a challenge for Mexico’s smallholder-based supply chain. Compliance is not only essential to access EU markets but also a strategic path to reduce overreliance on the U.S. and build long-term competitiveness through transparent sourcing.
Koltiva integrates farm-level data, satellite geolocation, and climate-smart training through KoltiTrace, KoltiVerify, and KoltiSkills. These tools enable real-time monitoring, emissions tracking, and EUDR-aligned compliance, while building farmer capacity to manage risks, supporting a transformative shift from reactive compliance to proactive sustainability.
In the lush tropical lowlands of southern Mexico, cocoa cultivation is more than agriculture—it’s heritage. The states of Tabasco and Chiapas are not only Mexico’s main cocoa-producing regions but also stewards of a tradition that dates back over 3,000 years (The Guardian, 2024). Revered by the Maya and ritualized by the Aztecs, cocoa was once consumed only by royalty. Today, cocoa sustains thousands of smallholder farmers, many of whom cultivate heirloom varieties using agroforestry practices rooted in ancestral knowledge.
In 2023, Mexico produced over 29,000 metric tons of cocoa - a modest increase of 3% from the previous year. However, forecasts suggest a concerning long-term trend: annual output could decline by approximately 2.7% potentially falling to 22,310 metric tons by 2026. These figures reflect deeper crisis. According to El Economista, Mexico is facing its worst cocoa crisis in 50 years, driven by erratic rainfall patterns, fungal diseases, and the growing impacts of climate change (El Economista, 2025).
A Perfect Storm: Cocoa at a Crossroad in Mexico and Beyond
Mexico’s cocoa sector is under extraordinary pressure. In some regions, cocoa harvests have plummeted by up to 80% due to prolonged droughts, sudden floods, and outbreaks of Moniliophthora roreri (frosty pod rot), which has ravaged traditional cocoa plots. For smallholders, this means lower yields, higher risks, and rising costs.
This local crisis mirrors a global emergency. In the 2023/2024 harvest cycle, the International Cocoa Organization (ICCO) reported an 11% drop in global cocoa production, equivalent to a deficit of 374,000 metric tons—the most severe shortfall in over half a century. Supply chain disruptions in West Africa, driven by heatwaves, disease, and climate variability, have left buyers scrambling.
In late 2024, cocoa prices surged to record highs, exceeding US$12,900 per metric ton. Although prices declined by over 30% in early 2025, they remain significantly above historical averages, hovering around US$8,000 per ton. This sustained elevation in prices presents a strategic opportunity for Mexican cocoa producers: by investing in sustainability and traceability, they can position their fine-flavour cocoa as a premium, reliable source in a volatile global market.
Table of Index:
The EUDR: A Turning Point for Mexican Cocoa
While the United States remains the primary destination for Mexico’s cocoa and cocoa preparation exports—accounting for nearly 80% of export value—the European Union continues to shape sustainability norms for global agricultural trade. This growing regulatory influence is prompting Mexican producers and exporters to align with EU standards, not only to diversify markets but also to build resilience and credibility within an evolving global supply landscape.
Recent U.S. trade tensions, including the imposition of 25% tariffs on many Mexican imports in early 2025, have added to this uncertainty. While cocoa products that comply with the USMCA remain exempt, the move has reinforced concerns about relying too heavily on a single export market. For many in Mexico’s cocoa sector, aligning with EU sustainability frameworks—such as the EUDR—represents a strategic step toward market diversification and long-term competitiveness.
The European Union Deforestation Regulation (EUDR), entering into force in December 2024, is poised to reshape global agricultural trade. Under this regulation, cocoa and other commodities must be:
· Deforestation-free (no deforestation after December 31, 2020)
· Legally produced in accordance with the laws of the country of origin
· Traceable to the plot level
For Mexico’s smallholder-based cocoa sector, this poses a serious challenge: thousands of farmers could be excluded from EU supply chains if they cannot demonstrate compliance. At stake are livelihoods, export revenue, and the legacy of one of the country’s most culturally significant crops.
Yet, within this disruption lies opportunity. The EUDR opens the door for early adopters to lead on sustainability, differentiate their product, and strengthen Mexico’s reputation as a source of ethical and transparent cocoa.
Scaling Digital Traceability in Southern Mexico
To support producers in navigating this new regulatory landscape, KOLTIVA is leading a landmark digital traceability initiative in Chiapas and Tabasco, regions hardest hit by climate and disease impacts. So far, over 177 cocoa farm polygons have been registered in KoltiTrace by a major cocoa sourcing company using the platform to strengthen its internal ESG audit and monitoring systems.
Each farm and plot is georeferenced, and data on land use, harvest volumes, and agroforestry practices are captured and monitored in real time. This geospatial and socio-economic data provides the foundation for EUDR-aligned operations and also allows buyers and cooperatives to identify productivity gaps, reduce deforestation and other supply chain risks, and improve supply chain resilience.
To demonstrate that our solutions go beyond regulatory checklists, the company is also piloting KOLTIVA’s GHG Tracker—an innovative feature that integrates the Cool Farm Tool via API. This tool enables greenhouse gas emissions assessments directly within the KoltiTrace mobile app, empowering sourcing teams to quantify and manage their carbon footprint at the farm level. While not part of EUDR requirements, this functionality highlights our commitment to driving measurable impact in sustainability across the supply chain, supporting climate-smart sourcing and preparing for future ESG reporting obligations.
To support verification and compliance pathways, KOLTIVA offers KoltiVerify, a flexible module for validating farm and supply chain data. Whether through API integration or manual upload, KoltiVerify enables buyers and exporters to assess completeness and credibility of the data against EUDR criteria—forming the basis for due diligence statements and audit readiness.
KoltiSkills: Training to Confront Climate Risk and Disease
Facing a historic production crisis, training and technical assistance have never been more urgent. KOLTIVA’s KoltiSkills service provides boots-on-the-ground support to strengthen farmer capacity in the face of climate volatility, crop disease, and new compliance requirements. Through on-site coaching, agroforestry management guidance, and climate-smart practices, producers learn how to protect and regenerate their plots, increase yields, and improve post-harvest processes.
KoltiSkills also plays a central role in EUDR compliance and ESG readiness, by directly mapping farm polygons, conducting risk assessments, and working closely with cooperatives to build capacity and align field practices with sustainability standards. Capacity-building workshops on traceability, data quality, and agroforestry, along with collaboration with local cooperatives and sourcing teams, are essential to ensuring long-term alignment and buy-in.
By embedding training within the traceability system, KOLTIVA ensures that data and knowledge go hand in hand—enabling real-time risk assessments, early warning alerts, and adaptive management strategies. In times of uncertainty, skills are just as critical as software.
Beyond Compliance: A Pathway to Transformation
“Our goal is not just compliance, but transformation,” said Silvan Ziegler, our Senior Head of Market Americas. “Field research and ground-truth verification are essential. By actively engaging with farmers, we build transparency from seed to chocolate bar—enhancing the reputation of Mexican cacao and securing its place in global markets.”
KOLTIVA's tools are not just checkboxes—they are steppingstones to improved livelihoods, healthier ecosystems, and more equitable trade. But technology alone isn’t enough. Sustainable transition must be supported by training, financial inclusion, government incentives, and public-private partnerships that reward farmers for sustainable practices.
The EUDR is not merely a compliance hurdle—it’s a catalyst for innovation in the cocoa sector. For Mexico’s exporters, embracing digital traceability and sustainability is no longer optional—it is essential to stay competitive in evolving global markets.
With the right support, Mexican cocoa can become a benchmark for ethical sourcing worldwide. KOLTIVA’s traceability, verification, and training systems offer a glimpse of what’s possible when technology and tradition come together in service of farmers and the planet.
After all, Theobroma cacao—the botanical name for cocoa—means “food of the gods.” By future-proofing this sacred crop with transparency and resilience, Mexico can continue to honour its cultural heritage while leading the global transition to sustainable agriculture.
Resources:
Busby, M. (2024). The bitter future of chocolate? How drought and a youth exodus threaten Mexico’s prized cocoa. The Guardian. https://www.theguardian.com/global-development/article/2024/sep/03/the-bitter-future-of-chocolate-how-drought-and-a-youth-exodus-threaten-mexicos-prized-cocoa
Galeana, E. (2024). Global cocoa prices soar amid supply concerns. Mexico Business News. https://mexicobusiness.news/agribusiness/news/global-cocoa-prices-soar-amid-supply-concerns
Statista. (n.d.). Cocoa production volume in Mexico by state. Retrieved May 14, 2025, from https://www.statista.com/statistics/946385/mexico-cocoa-production-volume-region/
Agence France-Presse. (2025). Climate crisis contributing to chocolate market meltdown, research finds. The Guardian. https://www.theguardian.com/environment/2025/feb/13/climate-crisis-contributing-to-chocolate-market-meltdown-research-finds
El Economista (2025). El cacao enfrenta su peor crisis en 50 años por cambio climático. https://www.eleconomista.com.mx/bistronomie/cacao-enfrenta-peor-crisis-50-anos-causa-cambio-climatico-20250115-742005.html
International Cocoa Organization. (2024). Growing Cocoa. Retrieved from https://www.icco.org/growing-cocoa/
Authors:
Gusi Ayu Putri Chandrika Sari, Sustainable Communications Specialist
Mercedes Chavez, Operations and Business Development - Mexico
Editor: Daniel Prasetyo, Head of Public Relations and Corporate Communications
About the Authors
Gusi Ayu Putri Chandrika Sari combines her expertise in digital marketing and social media with a deep commitment to sustainability, supported by over eight years of experience in communications. Her work focuses on crafting impactful narratives that connect technology, agriculture, and environmental responsibility. She is driven by a passion for promoting sustainable practices through compelling, audience-focused content across a variety of digital platforms.
Mercedes Chávez is a multilingual professional with extensive experience in sustainability-focused business development, localization, and translation. She is currently supporting operations and business development across the Americas for KOLTIVA. Her expertise includes legal compliance, strategic communications, and culturally nuanced SaaS localization. With a background in international development and gender equity, she brings a globally informed, locally grounded approach to every project.
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