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Cocoa sector: Bean purchase quotas in sight

23/02/2021
Source : ORISHAS FINANCE
Categories: Sectors

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In late January, Ivorian President Alassane Ouattara gave instructions to Yves Brahima Koné, who heads the Cocoa Coffee Council (CCC), to launch a reform of bean marketing. The major agricultural trading brands will be subject to quotas for the purchase of beans for the benefit of national operators. A major reform is expected in the Cocoa sector of Côte d'Ivoire. The mechanism in view would oblige multinationals to transfer at least 20% of their supply contracts with confectionery multinationals to national operators. This reform aims to bypass trading giants such as Cargill, Olam, Sucden or Barry Callebaut. The latter deliver stiff competition to nationals thanks to their long-term contracts with the big names in the sugar factory. The trading giants totaled about 800,000 tons out of 1.4 million in the 2020-2021 buying campaign. The proposed reform is likely to come up against the new regulations of the European Union (EU), which has just subjected the entry of cocoa beans into its territory to new rules.
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