La Côte d’Ivoire wants to require multinationals to grant 20% of cocoa purchasing contracts to local exporters

Following the protest of exporters grouped within the Ivorian traders group (GNI), to denounce the hand of multinationals on the purchase of almost all cocoa beans, the government, through the Coffee and Cocoa Council (CCC ) would like 20% of these giants to go to local exporters. A decision previously trampled despite the texts that govern the sector.

If the measure is applied, nearly 450,000 tonnes of cocoa beans will now be allocated to local exporters, which will allow them to cope with their cash flow hard hit by Covid-19 and its effects.

Speaking to Reuters, a source working at the CCC blasted the stranglehold. “The monopoly, the cartel of these 6 multinationals is a danger for our cocoa sector. We must reduce their influence and ensure that all actors have a place to work and therefore monitoring the application of this directive will reduce the influence of these multinationals, “he said.

The 6 multinationals are Cargill, SucDen, Olam, Barry Callebaut, Touton, and Ecom trading. They had succeeded in January in making the Coffee and Cocoa Council bend on the Income Differential by refusing to buy at 400 USD, a tonne of beans, decided by the Ivory Coast and Ghana. Faced with the intransigenace of these two large producers, these multinationals which control 100% of purchases and exports of cocoa beans and semi-finished products, suspended the purchase of cocoa, causing the storage of more than 200,000 tonnes of planters. in a few weeks. Faced with the galley of producers and the problem of conservation in storage warehouses, the CCC gave in.

While waiting for a mechanism to be put in place to reduce the monopoly on the sale and purchase of these giants, the CCC is considering further reforms. This will have the advantage of allowing the entire chain to benefit from the cocoa sector.

LEAVE A REPLY

Please enter your comment!
Please enter your name here