Ivory Coast Acts to Avert Defaults on Cocoa Export Contracts This Season

Top cocoa producer Ivory Coast has averted defaults on export contracts this season by letting multinational commodities companies buy at-risk contracts from local exporters, exporters and sources at the cocoa regulator said on Tuesday, Reuters reported. During the 2017/18 and 2016/17 growing seasons, exporters defaulted on nearly 500,00 tonnes of cocoa contracts they had bought in advance of the season as world market prices fell and exporters were unable to honour commitments to suppliers. In response, the Cocoa and Coffee Council (CCC) was forced to resell their contracts at an overall cost of more than 300 billion CFA francs ($512 million) to the Ivorian government. “Unlike the two previous years, this year we avoided defaults because the CCC reacted quickly by giving out risky contracts to other (exporters),” said an Abidjan-based exporter. Read more