Cocoa embargo continues
This week, Alassane Ouattara, the internationally recognised winner of November’s presidential election in Ivory Coast, has extended his embargo on cocoa and coffee exports to 15 March in an attempt to remove his rival by reducing his funds, but as yet Gbagbo has defied international sanctions and pressure to stand down.
Although cocoa does not rot quickly, it needs to be processed and energy supplies to operate factories have also been affected as the country runs short of foreign currency.
Hundreds of Ivory Coast cocoa farmers have burnt sacks of beans in protest at the ban on exports. Without cocoa they are at a risk of being unable to support themselves and their families.
The ban on exports is also likely to increase cocoa smuggling through Ghana.
As a result of this prolonged political unrest, cocoa prices have hit a 32 year high of $3645 (€2644) per tonne, having risen 14% since international export embargoes were put in place.
Traders and confectioners are now warning that price rises could be passed on to consumers. If no cocoa is exported than it is inevitable that consuming countries will run out of supply. Easter prices may not be affected as most businesses buy supplies six months in advance, so the price increases may not be noticeable until Christmas.
Have you noticed any increases in cocoa prices as a result of the Ivory Coast situation?
