Ivory Coast: Government Initiates Cocoa Buyback Scheme Amid Sector Crisis. Abidjan, Ivory Coast — The Coffee and Cocoa Council (CCC) of Ivory Coast has introduced a cocoa buyback scheme to address a burgeoning crisis in the cocoa sector.
The initiative aims to provide immediate financial support to cocoa producers as stocks pile up due to logistical and liquidity challenges.
According to Yves Brahima Koné, the director general of the CCC, the primary issues are logistical delays at the ports and a liquidity crunch within the commercialization chain. “Ships coming into the port of Abidjan are not arriving on time to collect the production available, “Koné explained. “Secondly, there is the liquidity problem.
Once there is a liquidity problem, you understand that within the commercialization chain, there is a payment problem.”
The situation has been exacerbated by a decline in global cocoa prices, leading exporters to refuse purchases.
The government’s buyback scheme is intended to prevent a social crisis, as many in Ivory Coast rely on cocoa as a primary source of income.
Koné emphasized the assurance that “growers will receive the official price set by the government.”
The scheme is budgeted at approximately 280 billion CFA francs and is expected to purchase up to 100,000 tons of cocoa by the end of March.
The first phase involves buying and storing the beans, with the subsequent phase focusing on exporting the stockpile.
Officials have indicated that the CCC is prepared to sell rapidly if buyers express interest.
The cocoa sector’s challenges have highlighted the need for a more stable and efficient supply chain, which the buyback scheme is intended to address.
However, the long — term implications of the current situation and the effectiveness of the buyback scheme remain to be seen.
Further details are expected.
