Barry Callebaut, the business-to-business chocolate maker, said today (13 April) that it is “too early” to judge when cocoa exports would resume from Cote d’Ivoire.
The EU has lifted sanctions on the African country – the world’s largest exporter of cocoa – after the arrest of Laurent Gbagbo, Cote d’Ivoire’s former president, who has refused to leave office despite electoral defeat in November.
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Gbagbo’s intransigence has caused political and civil unrest in Cote d’Ivoire, which threatened to push the country into civil war. Nonetheless, the fighting between the army and rebels supporting new elected leader Alassane Ouatarra still caused civilian deaths estimated at 1,500.
The EU said earlier this week that it would remove the sanctions – a move welcomed by Europe’s cocoa traders and confectioners – but Barry Callebaut struck a cautious tone when discussing when shipments could restart.
“It’s too early to guess when exports will resume,” a spokesman for the Switzerland-based told just-food. “We are closely monitoring the situation.”
Since the blockade, Barry Callebaut has increased production in neighbouring African countries Ghana and Cameroon, as well as in the US and Europe. The company also expanded its sourcing of cocoa from Ghana, Cameroon, Latin America and Indonesia.
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By GlobalData“We managed to organise ourselves by stepping up production and sourcing from other countries to make our commitments to fulfil the contracts with our customers,” the spokesman said.
Between November and last month, cocoa prices rose steadily, hitting a 34-year high in March as the EU sanctions started to have an effect. However, prices have fallen in recent weeks as President Ouatarra’s rebels made gains.
Some 80% of Barry Callebaut’s volumes are on “cost-plus” contracts where the company passes on cost increases to its customers.
However, Barry Callebaut has seen an impact on the rest of its business – particularly in consumer products – although the spokesman said that division’s customers had recently accepted some price increases.
“It actually has had only a limited impact on our profitability,” the spokesman insisted.
Meanwhile, the European Cocoa Association, the Federation of Cocoa Commerce and CAOBISCO – the continent’s industry association for chocolate, biscuits and confectionery makers – said it welcomed Brussels’ decision to lift the sanctions.
“A prompt resumption of cocoa activities will bring a much needed focus in the lives of the hundreds of thousands of people engaged in the Ivorian cocoa trade. We are confident that the international community will fully recognise the level of support and rebuilding of the economy and infrastructure that will be needed to facilitate a speedy recovery,” a joint statement read.
