During an extraordinary session of the International Cocoa Organization, which was held on December 8 in Montpellier, producers and buyers agreed to launch studies on the possibility of creating a cocoa exchange in Africa. Today, cocoa prices are decided in London or New York. By bringing this stock market closer to the places of production, Africa hopes in the long term for a rise in prices. But achieving this ambition will require overcoming many obstacles.
With our correspondent in Montpellier,
A cocoa exchange in Africa? Narcisse Ghislain Olinga, Cameroon’s delegate to the International Cocoa Organization, is 100% in favor: “ One of the major problems is the pricing mechanism, says the latter. It is fixed in London and New York, where the cocoa producer has no visibility. You are offered a price which, in reality, does not even allow you to cover your production costs. We are delighted that producing countries have started to tackle this problem head-on. »
But Jean-Luc Desverchère, Ivorian exporter in San Pedro, the world’s leading cocoa port, remains skeptical: “ Between supply and demand, and pension funds that intervene in a speculative market, can we really speak of supply and demand? There is a problem of speculation. Is the market really interested in the future of planters? »
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Agree on currency and logistical issues
This scholarship would focus on the four major African producers of Côte d’Ivoire, Ghana, Nigeria and Cameroon. But for it to work, it must attract buyers, and in large volumes, to have representative prices. On the African side, there are also obstacles to overcome, specific to the four countries concerned.
“ A stock market is not an ordinary society, Explain Michel Arrion, Director General of the International Cocoa Organization. There are all the financial regulations to respect, but these four countries have four different currencies. Deciding on the currency used to denominate the contracts is a big difficulty. We won’t have an agreement on the stock market if we don’t also have an agreement on all logistical issues: deliveries, warehouses, the operation of export ports. It could be a trade-facilitating element, but it’s going to take a lot of effort on both sides. »
The promoters of the cocoa exchange can in any case rely on other African examples, such as the commodity exchange created in Addis Ababa in 2008and which is used in particular to market the coffee of Ethiopian producers.
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