A source at Barry Callebaut confirmed purchases had been blocked since Thursday. The two companies are the biggest buyers of Ivorian beans and also the largest cocoa grinders in the West African country. Industry sources said the purchasing limit would allow smaller local exporters to honour their commitments. "It will facilitate cocoa purchases for exporters like us who need beans because the biggest have been buying everything available since January," said the head of a local export company who did not wish to be named. Another unnamed local exporter said the measure may still not be enough. "The truth is that there is no longer enough cocoa for everyone," he told Reuters. Main crop yields have been lower than usual this season due to months of below-average rainfall and poor weather conditions. Kone said the shortages were unexpected but assured the CCC had pre-sold beans with a sufficient security margin to avoid defaults. "There is enough volume... those who have funding and contracts will be able to buy all the cocoa they need, we will make sure of that," he said. (Reporting by Ange Aboa; Additional reporting by Sofia Christensen in Dakar; Editing by Sofia Christensen and Sharon Singleton)
By Ange Aboa
ABIDJAN, Feb 23 (Reuters) - Ivory Coast's cocoa
regulator has restricted 20 major traders, including Cargill and
Barry Callebaut, from purchasing beans for export after they
reached their buying limits, the head of the Coffee and Cocoa
Council (CCC) said on Thursday.
Port arrivals have slowed as the world's top cocoa producer
heads towards the end of its October-to-March main crop, raising
concern exporters might default on their contracts due to tight
supply.
The CCC refuted this on Monday but said measures would be
implemented to limit extra purchases and stock-building by some
exporters while others struggled to meet their requirements.
"We have informed 20 exporters who reached their purchasing
limits for the main crop that we have closed registration for
them," CCC head Yves Brahima Kone told Reuters by phone.
Traders concerned include giants Cargill Inc and
Barry Callebaut , as well smaller local companies, Kone
said.
He explained the CCC was activating a limit on extra cocoa
bean purchases set up during a 2012 reform to protect smaller
exporters from multinationals.
Barry Callebaut and Cargill did not immediately respond to
emailed requests for comment.
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