Ivorian cocoa prices fall, planters abandon farms

Cocoa beans are piling up in east Ivory Coast because of an embargo, while plummeting farmgate prices have pushed planters to abandon farms as Ghana reinforced security at its border to end smuggling, farmers said on Friday. "The amount of smuggling is down. There are a lot of beans just sitting in the hands of the farmers," said farmer Joseph Amani, who farms in the eastern region of Abengourou.
"For several weeks, the Ghanaian government has reinforced security at the border. It is very difficult to get the cocoa out. Everyone is depressed because we can't sell," he said. A dispute over a November election has plunged the world's top cocoa producer into violent turmoil, after leader Laurent Gbagbo refused to step down despite results showing he lost.
His rival Alassane Ouattara is recognised by world leaders and Western countries have imposed sanctions on Gbagbo and institutions supporting him, such as the ports and cocoa authority. Ouattara has imposed a ban on exports until March 15. Both aim to starve Gbagbo's regime of funds. Ivory Coast has severed ties with the central bank, sparking a huge liquidity crisis. International banks have closed shop.
In the western region of Gagnoa, farmers and co-operative managers said prices had fallen to between 375 CFA francs ($0.790) to 400 francs per kg as the result of a lack of liquidity, compared with prices of 500 to 700 francs per kg before the crisis. As the dispute gets more violent, many farmers in the west and other parts of the country have fled, fearing attacks.
"The price has gone down a lot. The farmers are having to sell at a cut price. There are Lebanese buying as low as 375 CFA francs per kg," said cooperative manager Francois Badiel. "The plantations are no longer being tended for lack of money. The workers are not turning up.