Com-Watch - Issue 37 - June 2014

Cote d’Ivoire
Oct-Apr Cocoa Product Exports Up Over 4%
Exports of semi-finished cocoa products from Ivory Coast were 238,598 tonnes from October to April of the 2013/14 season, up
more than 4% compared with the same period last year. Investments in cocoa processing facilities in Ivory Coast have increased
local grindings since 2008. In 2010, the nation overtook the Netherlands to become the world’s top cocoa grinder with a capacity
of 532,000 tonnes of beans, which are transformed mainly into cocoa butter and powder. Ivory Coast grinds around 35%^ of
its beans locally but aims to process half of its average annual production of roughly 1.4 million tonnes domestically as part of
reforms launched last season. The following are official figures for cocoa product exports in tonnes, including a breakdown of
cocoa powder, butter and chocolate.
[Reuters 26/05/14]
Apr 2014 Mar 2014 Apr 2013
Abidjan 12,522 22,559 20,488
San Pedro 11,903 13,359 10,495
Total 24,425 35,918 30,983
Cumulative from Oct 238,598 214,173 228,773
Powder - Abidjan 939 2,597 4,452
Butter - Abidjan 2,370 6,159 5,005
Chocolate - San Pedro nil nil nil
Cocoa Farmer Price Falls Despite Heavy Grinder Demand
Cocoa merchants in several of Ivory Coast’s main growing regions have begun paying farmers less than the government
guaranteed minimum price amid complaints of small bean size and poor road conditions. Grinders, however, continued to pay
bonuses for shipments arriving at the country’s two ports of Abidjan and San Pedro in order to ensure supplies. The mid-crop
marketing season in Ivory Coast opened on April 1, with the government maintaining the minimum farmgate price of 750 CFA
F/kg [US$1.59] set at the start of the main crop in October. Buyers say that the beans are too small and often buy at 700-725
CFA F/kg. A lack of merchants operating in the bush has also driven down prices as little competition for the growing volumes of
beans now being harvested.
Traders are expecting a strong mid-crop harvest in Ivory Coast. Earlier concerns over poor weather have been dispelled with the
arrival the rainy season’s regular showers which in turn damaged roads, making it harder for merchants to reach plantations deep
in the bush. Analysts now predict a better than expected crop in West Africa after forecasts of a supply deficit boosted prices
20% last year.
Meanwhile cocoa with a bean count above 120 beans/100g is not allowed to be exported as beans. And since the mid-crop
produces smaller beans than the main crop, the lion’s share of total volumes is typically purchased by local processors. Ivory
Coast set a minimum price port entry price of 830 CFA F/kg this season with a price ceiling of 845 CFA / kg. However some large
grinders are now paying above the maximum price allowed offering up to 860 CFA F because the bean quality is good.
[Reuters 07/05/14]
Rains Complicate Cocoa Bean Drying
Abundant rains occurred in most of Ivory Coast’s main cocoa-growing regions which should help mid-crop development, but
growers are struggling to dry their beans. Farmers noted harvesting was intensifying with large stocks of beans waiting to be
collected from plantations. In the coastal region of San Pedro, farmers said that while 2-weeks of heavy showers were helping
their trees, they were struggling to prepare their beans for pick-up by merchants and worried there would be a lot of mould in the
shipments. In western Duekou farmers were certain they would have problems to properly ferment and stock their beans in the
bush. Ivory Coast introduced stricter quality standards, including for mould and moisture levels, as part of a drive implemented
last season that exporters have credited with improving the reputation of the country’s cocoa.
[Reuters 29/04/14]
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