Ivory Coast increases support for cocoa exporters: 500,000 tons are targeted

By: Trademagazin Date: 2024. 08. 27. 11:53

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The government of Côte d’Ivoire is taking a major step to support local cocoa exporters to increase their competitiveness in international markets. The world’s largest cocoa producer has produced an average of 2.2 million tonnes of cocoa beans over the past three years, but 80% of exports and purchases are still dominated by large multinational companies. For local, smaller exporters, who often struggle with financial difficulties, it is a serious challenge to compete against these financially secure international players.

With the start of the new cocoa season in October, the government plans to provide 10 billion CFA francs ($16.75 million) in subsidies to local exporters over the next four years. This amount is a significant increase compared to the annual subsidy of approximately 3 billion CFA francs, which was only sufficient to procure between 150,000 and 200,000 tons per season. The goal is that, thanks to the support, the purchase volume of small exporters will reach 500,000 tons per year, reports the Agricultural Sector.

An agriculture ministry official said the increased support should also encourage banks to extend loans to these exporters, helping them achieve financial stability. This is particularly important as the European Union is about to introduce new regulations on the import of goods related to deforestation, further intensifying competition between exporters.

Although the government’s support is a positive step, some experts say more is needed to make local companies truly competitive in the global market. Although the support may help to increase the volume of purchases, additional measures will be needed to ensure that local cocoa exporters are on a stable footing in the long term.