Ivory Coast Said to Face $327 Million in Losses Over Cocoa Deals
- Cocoa regulator seeking compensation from defaulting exporters
- Local exporters can’t honor deals for 350,000 tons of beans
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Ivory Coast’s cocoa regulator is facing losses of more than 200 billion CFA francs ($327 million) after local exporters defaulted on their contracts because they wrongly speculated that prices would rise, according to a person familiar with the matter.
Le Conseil du Cafe-Cacao, the industry regulator in the world’s biggest cocoa producer, is seeking compensation from exporters who couldn’t fulfill their commercial agreements, said the person, who asked not to be identified because the information is confidential. Companies and cooperatives that are in default aren’t allowed to take part in auctions for the season that will start in October unless they make payment arrangements, said the person.