Ivory Coast’s cocoa exporters, represented by the association GEPEX, have asked to meet with the country’s Coffee and Cocoa Council (CCC) regulator to discuss financial support to cushion the current market turmoil.
Due to bean shortages, some contracts between GEPEX – which represents multinational exporters including Barry Callebaut, Olam, and Cargill – and the CCC have been postponed. This comes after the government raised the farmgate price by 50% to 1,500 CFA francs per kg, leaving exporters exposed as they had bought contracts at the previous lower price.
In a letter dated April 17, GEPEX said the CCC should reimburse the farmgate price increase to all affected exporters. The association estimates the impact of this increase to be around 75 billion CFA francs ($123.41 million), with the volume of postponed contracts at 150,000 metric tons.
However, the CCC sources said the exporters’ figures were questionable and their own estimates were lower. The regulator plans to make payments to affected exporters on a case-by-case basis to avoid any confusion or fraud.
The CCC officials also said they do not want to give in to the “threats” from the multinational cocoa exporters. In response, GEPEX said the CCC was failing to honor its contractual commitments.
The standoff between the exporters and the regulator reflects the current market turmoil in Ivory Coast’s cocoa sector. The exporters are seeking financial support from the CCC to cushion the impact of the farmgate price increase, while the regulator is taking a more cautious approach to avoid potential abuse.
The outcome of this dispute could have significant implications for the supply and pricing of Ivory Coast’s cocoa, a critical commodity for the global chocolate industry.