Ivorian cocoa prices continue slide on export halt

ABIDJAN, March 24, 2011 - Cocoa prices fell at farms across Ivory Coast in the latest week as an ongoing export halt from the nation's ports thinned out buyers.

In the centre-west region of Daloa, which produces a quarter of the Ivory Coast harvest, farmers said the farmgate price hadslipped to 300 CFA/kg ($0.642) from 300-400 CFA/kg last week.

"The prices are catastrophically low," said farmer Marcel Aka, adding growers were tending subsistence crops on spareground, while delaying the harvest of ripe mid-crop cocoa.

"Farmers are focusing on preparing the ground for rice and yams. It is better because at least we'll be able to eat," he told Reuters by telephone.

Prices were also running between 250 and 300 CFA/kg in the western growing region of Soubre and the southern region ofDivo, farmers said -- down from around 400 CFA/kg in the pasttwo weeks.

Ivory Coast's official guideline price for the 2010-11season is 1,100 CFA/kg, though prices started the season inOctober at around 900 CFA/kg and they rarely trade at or abovethe guideline.

Prices have tumbled in recent months since a disputed November election hampered port operations. One of the poll claimants called an export ban in January to pressure his rival,incumbent Laurent Gbagbo, and the EU slapped restrictions onshipping activities at Ivorian ports.

The ban, while cutting domestic farmgate prices, has pushed up futures prices by stoking global supply fears.
 

A purchases manager of an international cocoa exporter said only a handful of local purchasers were now active at the port of Abidjan, snapping up cocoa at low prices for storage in hopes of making a profit when exports resume.
 

He said prices were around 500 CFA/kg, compared with 900 CFA/kg before the export ban.
 

"These buyers are hoping for big business after exports restart. But nothing is happening among the exporters," he said, adding some companies were preparing layoffs.
 

A farmer in Soubre said some planters were turning to rubber
to avoid the complications of the cocoa export halt.
 

"There is still a blockage for cocoa commerce. This situation has lead many farmers to plant rubber at their old plantations," said farer Innocent Zamble.
 

"In reality, there are no trucks coming and going in the countryside. This will delay and discourage farmers from harvesting the mid-crop beans," he said. ------