Ivory Coast is grappling with a temporary cocoa glut at its main ports as farmers rush to sell beans amid falling global prices and a cash squeeze among local exporters, industry sources said.
Truckloads of cocoa have been backing up for three weeks at the ports of Abidjan and San Pedro, with middlemen arriving in droves to offload beans. Weekly arrivals have surged above 100,000 tonnes unusually high for this period raising concerns that inflated figures could distort crop estimates and deepen the slide in world prices.
The backlog has been fuelled by a liquidity crunch among licensed exporters whose revenues have been eroded by weaker international prices, the sources said. Many exporters are struggling to pay for forward contracts agreed at higher levels, squeezing margins and making banks reluctant to extend credit.
As a result, middlemen and cooperatives have been hauling stockpiles directly to the ports, forcing the regulator’s trading arm, Transcao Côte d’Ivoire, to step in as a buyer of last resort. Farmer anxiety over potential cuts to the state-set farm-gate price is also driving the rush, said Andrew Moriarty of market intelligence firm Expana.
“Farmers are basically pulling everything off the trees and rushing it into ports, and that is what’s causing these inflated arrivals,” Moriarty said. “They’re terrified the farm-gate price will drop from its current record.”
Global cocoa futures have more than halved from their peak last December amid expectations of a surplus this season. Strong arrivals from the world’s top producer have reinforced that outlook, adding pressure to prices.
To ease congestion, the sector regulator, Le Conseil Café-Cacao (CCC), has intermittently shut down its system for recording arrivals to control truck flow at the ports, the sources said. The CCC did not immediately respond to requests for comment.
Farmers have also complained of delays in issuing delivery notes essential documents for transporting cocoa to ports leaving around 120,000 tonnes stuck in warehouses, according to Kone Moussa, head of the growers’ union Synapci.
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The CCC has launched a crackdown on buyers undercutting the state-mandated minimum price or fraudulently reducing sack weights. Four people have been arrested so far, the regulator said.
