Côte d'Ivoire's Coffee and Cocoa Council (CCC) regulator has significantly curbed the hoarding of beans in September, due to the threat of sanctions against buyers and cooperatives, sources within the CCC, exporters, and buyers told Reuters on Thursday.
Cocoa bean arrivals at Côte d'Ivoire ports of Abidjan and San Pedro exceeded 50,000 tonnes in the first three weeks of September, a significant increase from around 19,000 tonnes recorded for the entire month of September in 2023.
The CCC expects to finish September with more than 65,000 tonnes of cocoa beans delivered, despite the month typically being characterised by bean hoarding by buyers and cooperatives, especially if they expect an increase in the guaranteed farmgate price at the start of the new season in October.
The world's top cocoa grower will launch its 2024-25 cocoa season on October 1, when a new farmgate price will be announced.
Ghana increases farmgate price by 45%
The farmgate price is expected to match or be slightly higher than in neighbouring Ghana, the world's number two producer.
Ghana has increased its farmgate price by nearly 45% compared with last season to boost farmers' income.
"We have managed to stem the end-of-season cocoa-hoarding practiced by buyers and some cooperatives who try to make easy money if the guaranteed farmgate price increases," a CCC source told Reuters.
The decline in cocoa bean storage at the end of this season is primarily attributed to a crackdown by the regulator.
Stock verification
The CCC suspended some cooperatives in May and warned in late August of the possibility of withdrawing buying licences from independent buyers and cooperatives found hoarding cocoa.
It also launched a stock verification operation in the production regions and deployed hundreds of agents accompanied by law enforcement officers.
"It's difficult to keep cocoa in storage this year even though we know the price is going to increase because the CCC is everywhere in the bush with agents and gendarmes to control the stores," said a cocoa buyer based in Soubre, in the cocoa belt, who has already delivered all 400 tonnes he had in storage since September 3.
According to some exporters, the regulator's drive to curb hoarding, and the 25% decline in output this year due to poor weather conditions and disease, will potentially lead to a drop in bean arrivals at the start of the season in October.
'Harvested everything'
"I've never seen so much cocoa in September for 30 years," said a director of cocoa export company based in Abidjan.
"But this means that October will be poor in cocoa because the growers have harvested everything and everything has been delivered, so we won't have any stock to start the season," he said.
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