Ivorian cocoa prices rise first time since end of conflict

Ivorian cocoa farmers said on Thursday that prices for their beans were rising for the first time since the end of a violent post-election power struggle, but that smuggling continued into Ghana. Banks began reopening on Thursday and cocoa exporters in the top grower nation said they expected shipments of beans to resume by the end of next week, key steps in reviving cocoa trade in the countryside.
"The banks reopened this morning in Daloa. This is a good sign for the future, even if the buyers and exporters have not immediately restarted," said Attoungbre Kouame, who farms in the centre-west region of Daloa which produces about a quarter of the Ivorian harvest.
"At the moment, cocoa is selling for between 350 and 400 CFA frances per kilogram," he said, adding prices two weeks ago were between 250 and 300 CFA/kg. "We think prices will rise in the coming week with the resumption of trade and exports and the restart of banking operations," he said. Ivory Coast's conflict started to ease in mid-April with the arrest of former leader Laurent Gbagbo, who had refused to step down after a November election, triggering a dispute that killed as many as 3,000 people and paralysed the economy.
In the western region of Gagnoa, the average price was around 350 CFA/kg compared with 250 CFA/kg three weeks ago. "The prices are improving. We hope the prices will keep rising with the reopening of the banks," said Francois Badiel, head of the Gagnoa cocoa farmers' co-operative.
In the western region of Soubre, at the heart of the cocoa belt, farmers, who have began the harvesting the mid-crop which runs from April to October, were holding back their beans expecting higher prices in the coming week. "There has been a small increase in prices. We are between 300 and 400 CFA/kg but farmers are holding back product because they think prices will rise further next week," said farmer Salam Kone. "There are lots of beans to sell, and the quality is good," he added.
In the eastern region of Abengourou, near the border of Ghana, farmers said much of the area's cocoa was being sold to smugglers headed for Ghana in recent months. "All of the stockpiles in the region have gone to Ghana," said farmer Joseph Amani. "They bought at about 700 CFA/kg and they resold (in Ghana) at 1,000 to 1,100 CFA/kg," he said. "The Republican Forces say nothing when the trucks take the road to Ghana," he said, referring to forces who toppled Gbagbo and now make up the Ivorian army.