Ivory Coast to buy entire stockpile of cocoa beans as stocks pile up

Ivory Coast has announced its decision to purchase the entire volume of cocoa stockpiled by the country's cooperatives to ensure timely payment to producers. This measure comes in response to a significant drop in cocoa prices, reaching their lowest point in two years.

The cocoa industry is a vital component of Ivory Coast's economy, contributing 14 percent to the nation's GDP. However, a slowdown in exports has resulted in an accumulation of cocoa stocks.

The government has decided to intervene, with the strategy articulated by Kobenan Kouassi Adjoumani, the Minister of Agriculture, on Tuesday. The approach involves leveraging credible national operators to manage the purchasing and collection operations. These activities will be conducted in partnership with traditional partners, including shredders, multinationals, and international exporters.

Ivory Coast is recognized as the world's largest cocoa producer, with the industry supporting one in five people in the country. Recently, cocoa prices have decreased by approximately $5 per kilo, impacting the local economy.

The surge in cocoa prices anticipated in late 2024 prompted manufacturers to reduce chocolate usage, leading to a decline in exports to Europe and Asia.

Based on reporting by Africanews.