Cocoa exporters in Ivory Coast, the world’s biggest producer of the beans, have been ordered to suspend all cocoa and coffee shipments for a month, according to the government of president-elect Alassane Ouattara.
The halt in exports runs from tomorrow to Feb. 23, according to an e-mailed statement from the office of Prime Minister Guillaume Soro and signed by Ouattara’s Justice Minister Jeannot Ahoussou. Cocoa rose to an 11-month high in New York on Jan. 21 on speculation that steps to remove the incumbent president will disrupt exports.
“Last week we had a meeting with the main cocoa exporters in Ivory Coast and they have agreed to suspend exports for a month,” said Malick Tohé, an adviser to Ouattara’s government, in a phone interview from Abidjan today. All exporters have agreed to halt shipments, he said.
The export ban is meant to cut off the rival government of incumbent President Laurent Gbagbo from export revenues of the beans, Tohe said. Ouattara’s government “‘does not have control over exports revenues right now,” he said. “They go straight to the National Coffee and Cocoa Management Committee, which is in the hands of Gbagbo,” he said.
While the United Nations, the U.S. and African leaders recognize Ouattara as the winner of the Nov. 28 elections, Gbagbo has refused to step down, alleging voting fraud in northern states.
Cocoa Production
Ivory Coast’s cocoa production accounts for a third of global production, and is forecast to be 1.9 percent larger than a year ago, according to Macquarie Group Ltd. Shipments by farmers to the country’s ports from the latest harvest are about 2 percent below last season, the bank said on Jan. 19.
On Jan. 15, the European Union imposed sanctions to block trade between the EU and Ivory Coast by barring financial transactions between Europe and any of the people or entities on the sanctions list, which include the ports of Abidjan and San Pedro. Shippers are allowed to continue to buy cocoa beans in the interior of the country, Tohé said.
The Professional Group of Ivory Coast Coffee and Cocoa Exporters was not available for comment when called by Bloomberg News today.
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