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Cocoa sector: Bean purchasing quotas in sight

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

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At the end of January, Ivorian President Alassane Ouattara gave instructions to Yves Brahima Koné, who heads the Cacao Coffee Council (CCC), to launch a reform of the marketing of beans. Major agricultural trading brands will be subject to bean purchase quotas for the benefit of national operators. A major reform is coming in the cocoa sector in Côte d'Ivoire. The proposed mechanism would require multinationals to sell at least 20% of their supply contracts with multinational confectionery companies to national operators. This reform aims to circumvent trading giants such as Cargill, Olam, Sucden or Barry Callebaut. The latter offer tough competition to nationals thanks to their long-term contracts with the big names in the sugar industry. The trading giants totaled around 800,000 tons out of 1.4 million in the 2020-2021 purchasing campaign. The planned reform is likely to clash with new regulations by the European Union (EU), which has just made the entry of cocoa beans into its territory subject to new rules.
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