Ivory Coast cocoa exporters express concern over potential contract defaults over bean supply shortages
Ivory Coast cocoa exporters have been close to defaulting on their contracts over a reported lack of beans – amid a backdrop of a deficit of 150,000 tonnes of supplies, writes Neill Barston.
According to Reuters news agency, the West African nation, which with its neighbour Ghana accounts for around two third of global cocoa for the confectionery trade, is struggling to meet market demand owing to a number of key challenges.
The organisation reported that exporters estimated that around 34,000 tonnes of cocoa arrived at the country’s main port for the week of February 12, just under half the figure achieved for the same period last year.
As Confectionery Production has previously reported, the region has faced considerable ongoing challenges in the wake of the pandemic, which impacted the region notably, as well as major increases in fertiliser that is believed to have further negatively impacted on crop yields, with many farmers – earning below poverty line wages, unable to afford the inflated costs.
Consequently, the Conseil du Cafe-Cacao has reportedly met with GEPEX, representing global exporters, along with domestic trader lobby group GNI and cocoa co-operative groups in a bid to resolve the situation.
However, it has been reported that exporters believe that there is a notable risk of falling into default owing to the fact that it has been hard to purchase beans in the past three weeks amid scarcity of supplies.
As other market observers have noted, there had been some level of optimism surrounding mid season crops. yet the underlying issue of inflated costs of fertiliser and a wide range of other goods contributing to the cost of living crisis felt on a global level, is significantly impacting on West Africa.
Furthermore, Confectionery Production focused on the issue of cocoa supplies within our present edition of the magazine, with senior cocoa specialist Jack Steijn noting from recent visits to the region that conditions within Ivory Coast had appeared to be notably challenging for the sector.
