Ivory Coast cocoa price increase expected to spur Ghana smugglers

Cocoa industry watchers anticipate a rise in the smuggling of cocoa from Ghana to Ivory Coast following increase in the prices of cocoa in that country.

According to the Bloomberg news, as much as 75,000 metric tons of cocoa from Ghana may be smuggled into neighbouring Ivory Coast.

The report citing Saf-Cacao, the biggest cocoa buyer in Ivory Coast, said smugglers will be attracted by the record farm-gate prices. Cocoa farmers in Ivory Coast are now being paid 1,065 CFA francs ($2.29) a kilogram (2.2 pounds) for their beans, the most in 30 years, according to the state-run Bourse du Café et du Cacao. Farmers in Ghana, the second-largest grower, are paid 2.4 cedis ($1.69) a kilogram.

Ali Lakiss, a director of Saf-Cacao was quoted as saying “There’s no question that smuggling is increasing from Ghana this season. Based on arrivals figures to ports, we’re estimating 75,000 tons of smuggled Ghanaian cocoa by the end of this season.”

By Emmanuel K. Dogbevi