Domestic Ivorian Cocoa Exporters Competing With Multinationals Fear Bankruptcy

Domestic Ivorian cocoa exporters fear going bankrupt because they cannot compete with the higher prices multinational companies are paying for beans, the Ivory Coast’s traders association (GNI) told Reuters, Reuters reported. Western chocolate companies such as Lindt, Hershey and Ferrero pay a premium for sustainable cocoa made with fair trade certification, buying mainly from multinational companies such as Cargill, Olam and Barry Callebaut. Domestic exporters, which win a much lower share of those lucrative contracts, have less financial strength to buy cocoa beans - whose price has been inflated by purchases from the multinationals - to service other export contracts. That means they run the risk of defaulting on their commitments, the GNI said, potentially a huge blow for the Ivorian cocoa market. Read more