According to internal sources within the regulatory organization, the Coffee and Cocoa Council (CCC) of Ivory Coast has taken serious action against over forty cooperatives suspected of storing cocoa beans to sell them at inflated rates due to a scarcity in supply. This action is taken as the world’s largest cocoa producer is at a crucial time when crop diseases and unfavorable weather patterns are affecting cocoa yields.
The involvement by the CCC is a reaction to a difficult scenario in which some cooperatives and independent buyers have allegedly accumulated more than 60,000 metric tons of cocoa since the early April start of the mid-crop season. Although hoarding is not unlawful in and of itself, the CCC argues that the practice violates the law when it is used to artificially increase prices.
Exporters, especially smaller ones, have been struggling to fulfill their international contracts due to the reduced availability of cocoa beans. Some cooperatives were reportedly exploiting this situation by demanding higher prices from these exporters, significantly higher than the set farmgate price of 1,500 CFA francs ($2.50) per kilogram for the April to September period. Prices demanded at the ports of Abidjan and San Pedro soared to between 1,600 and 1,800 CFA francs per kilogram.
In response to these practices, which threaten the stability of the domestic cocoa market and put additional pressure on exporters, the CCC imposed suspensions on the trading activities of the involved cooperatives last week and others this week. “We were forced to react vigorously and suspend around 40 cooperatives and buyers to put an end to this practice, which is destabilizing the domestic marketing system and putting some exporters in difficulty,” a CCC source explained under the condition of anonymity.
The impact of these suspensions has been broadly welcomed by the exporting community, which has been adversely affected by the hoarding. Exporters reported that if beans were not being stockpiled, the weekly arrivals at the ports would significantly increase. Currently, cocoa arrivals at Ivory Coast’s ports are down by 29.3% compared with the same period last year.
One exporter, based in Abidjan, shared his direct experience with the inflated pricing demands: “Two of my suppliers are part of the suspended cooperatives. They offered me cocoa at 1700 CFA francs per kg last Thursday and this Monday. I didn’t accept,” he stated, also choosing to remain anonymous. A San Pedro-based cocoa exporter expressed concern over the broader implications of these actions: “This has to stop. There isn’t enough cocoa this year, so we must avoid complicating the already complicated situation,” he said.
Apart from the aforementioned suspensions, the CCC is presently carrying out an inventory of the cocoa stocks owned by independent buyers and cooperatives. It is requested that those who are found to have surplus inventory and active delivery contracts hurry up with their deliveries. The CCC source continued, “We will refer cooperatives and purchasers with delivery commitments to other exporters ourselves if they do not deliver soon.”
The CCC’s dedication to upholding justice and order in the cocoa market is demonstrated by this regulatory restriction, which aims to guarantee that all parties involved—from domestic growers to foreign purchasers—operate in an orderly and equitable way.
