Ivory Coast: Government launches cocoa buyback scheme

Ivory Coast's Coffee and Cocoa council has launched its initiative to buy beans so producers can get paid. Cocoa stocks have been piling up in co operatives in the country, with several factors leading to a crisis in the sector.

Yves Brahima Koné, director general of the Coffee and Cocoa Council, said "the first factor is the logistics problem in the ports, the fact that ships coming into the port of Abidjan are not arriving on time to collect the production that is available. Secondly, there is the liquidity problem. Once there is a liquidity problem, you understand that within the commercialisation chain, there is a payment problem. These two factors combined have led to a slowdown in commercialisation within the country."

Exporters have refused to purchase beans following a drop in global cocoa prices. The government’s buyback scheme seeks to stave off a social crisis, as many in the country depend on cocoa as a source of income.

Koné insisted "we therefore now have the assurance that growers will receive the official price set by the government."

The buyback scheme will cost some 280 billion CFA francs.

As many as 100,000 tons of cocoa will be bought by the end of March.

The first stage involves buying and storing the beans, then the following stage will centre on exporting the stockpile Officials say the CCC is prepared to sell rapidly if buyers express interest.