In brief: reforms in Côte d'Ivoire (05/06/2012)

The new government of Côte d'Ivoire has launched a system to regulate the country's cocoa sector. A single board, the Conseil du Café Cacao, will oversee the market, which features a stabilized price at the farm gate per crop.

Under the new system 70% to 80% of the crop will be sold forward, while the remaining 20% to 30% will continue to be spot sold. The Conseil has started electronic auctions to sell the 2012/13 crop before the season begins in October. The auctions will be used to determine the stabilized price for the farmer, based on the average sale price and the costs of the supply chain.

Local grinders and exporters such as Cargill can still source cocoa directly from farmers' organizations – but at a regulated price. The changes should not affect the availability of beans from IVC.

Along with others in the industry, we are engaging with the government to discuss the implementation of the reforms and resolve any remaining issues.