Ivorian cocoa prices rise as farmers see shortages
FMCG SUPPLIER NEWS
Business Live - Feb 3rd, 07:58
Cocoa farmgate prices ticked up in Ivory Coast's main growing regions last week as the price of beans at ports rose and farmers said they were starting to see a shortage of beans up-country.
Cocoa futures on ICE have risen in recent days as the world's top grower sought to kick-start its forward-sales auctions, but a number of leading exporters stayed away from the process.
Meanwhile, this year's crop is expected to fall from last year's bumper harvest due to the lack of rain, insufficient crop spraying and ageing trees.
In the western region of Soubre, at the heart of the cocoa belt, farmers said the average price was between 675 CFA francs ($1.36) to 725 CFA per kg, slightly up from the week before.
"People are really buying cocoa here. The merchants are increasingly aware that they will not be able to get their hands on any more cocoa soon," said Salam Kone, who farms in the outskirts of Soubre.
In the centre-western region of Daloa, which produces a quarter of Ivory Coast's output, farmers said the average price was about 700 CFA, up from between 650 CFA and 700 CFA the previous week due to exporters' demand.
"There is not more cocoa. The exporters have raised the prices to try and get something, but they are not satisfied," said farmer Attoungbre Kouame.
Arrivals of beans at Ivorian ports by Jan. 22 stood at 838,020 tonnes, according to BCC sector body data obtained by Reuters, down about 5 percent from levels at the same stage last year.
"We were paying more (at the port) last week," said a purchases manager of a European cocoa exporter, who asked not to be named.
"At Abidjan the price peaked between 850 CFA and 870 CFA compared to just above 800 CFA the week before," he added. "There is less cocoa in the bush, and there is stiff competition for the little cocoa that is coming in."
Farmers in the western region of Man reported prices per kg rising to 700 CFA from between 650 and 675 CFA the week before.
Meanwhile, the southern region of Aboisso saw the same trend, farmers said. "Prices in Abidjan have given lots of support to those in the bush," said farmer Etienne Yao.
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