Chocolate prices set to jump following farmer strike

Mass strikes by the cocoa farmers in the Ivory Coast, the country that produces 40% of the world's annual supply may lead to a rise in price of chocolates and soon affect the global chocolate industry.
Posted : Tue, 17 Oct 2006 11:44:01 GMT
By : Ryan Jones
Category : Business
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Mass strikes by the cocoa farmers in the Ivory Coast, the country that produces 40% of the world's annual supply may lead to a rise in price of chocolates and soon affect the global chocolate industry.

The indefinite strikes by the Anaproci cocoa farmers' association demanding higher prices and reduced export taxes has already brought the delivery of cocoa to the ports to a standstill. Almost half the population depends on money from cocoa, and the effects of the strikes could change their lives drastically.

At Anyama, north of the Abidjan, truckloads of cocoa were set on fire as a show of protest. Buyers at San Pedro reported that warehouses remained open but empty. "From today, all cocoa-producing regions are on strike. No cocoa will reach the ports. If a buyer loads up cocoa to send to the port, he will do so at his own risk. They have been warned about the strike and they should'nt send any cocoa to the port," a delegate said voicing his support.

Anger among the cocoa farmers has been steadily rising since 2000, when the coffee and cocoa industries were privatized. Cocoa's price on the world market is around 1.60 dollars per kilogram, but the farmers barely receive 41p a kilo, mainly because the exporters pay huge taxes to take the cocoa out of the country. The cocoa farmers went on strike in 1999 and 2004 but production was not seriously affected. This time the protests seem stronger and although the strike comes at the start of the new season it threatens to could cause the stocks to mold.

The farmers, while highlighting their increasing poverty are demanding that they be paid the government set price. They are also demanding a 55% slash in the export rates. Currently the export rate stands at 40 cents per kilo and are a main source of revenue to purchase military equipment. The union is also demanding greater financing in farmer run cooperatives.

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