Ivory Coast cocoa exporters cut purchases as port prices rise, sources say

Olam

16/01/2025 12:52

ABIDJAN, Jan 16 (Reuters) - Swiss chocolate maker Barry
Callebaut  BARN.S  and Singapore-based food group Olam  OLAG.SI 
have been buying fewer cocoa beans from Ivory Coast since
mid-December after a rise in port prices at Abidjan and San
Pedro, industry sources said on Thursday.
    Seven cocoa buyers based in the regions of Soubre, San
Pedro, Duékoué and Meagui told Reuters they are charging
exporters, including smaller operators, more than an official
cap in order to benefit from a rise in global cocoa prices
towards record levels. 
    "We have had to slow down our cocoa purchases in the bush
since mid-December because of price inflation at the ports,"
said one Barry Callebaut manager who did not wish to be named. 
    The sources said the companies exporting from top cocoa
grower Ivory Coast were overpaying suppliers where necessary to
meet their targets because production for the 2024/25 season has
been lower than forecast.
    The Barry Callebaut manager said cocoa suppliers at ports
had been asking between 2,230 and 2,250 CFA francs ($3.55) per
kilogram of cocoa. The price is officially capped at 1,930 CFA
francs/kg by Ivory Coast's Coffee and Cocoa Council (CCC)
regulator.
    A manager at Olam said the company had been forced to reduce
cocoa purchases despite high demand for beans and low global
supply due to adverse weather.
    "We need cocoa, but not at this price," the Olam manager
said.
    Barry Callebaut and Olam did not immediately respond to
requests for comment.
    The cocoa buyers said they deliberately stockpiled beans for
longer than the 15-day limit imposed by the CCC, creating an
artificial shortage that pushed exporters to accept higher
prices.
    Although the CCC forbids overpayment, it is common given the
competition to obtain cocoa.
    "It is the only way to make more money with exporters when
the world market is on the rise and there isn't enough cocoa for
everyone," said a major buyer based in San Pedro.
    He said he did not deliver cocoa beans to port for less than
2,230 CFA francs/kg.
    The higher port prices are also putting small exporters at
risk of missing their purchasing targets.
    "There isn't enough volume for everyone. Production is down
and all the cocoa is going to a few companies, so the risk of
default is much greater for companies like ours," one such
exporter said, calling on the CCC to intervene.
    The CCC declined to comment. 
    
($1 = 633.0000 CFA francs)

 (Reporting by Ange Aboa
Editing by Sofia Christensen, Kirsten Donovan)
 ((Sofia.Christensen@thomsonreuters.com;))