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Ivorian cocoa dealers hope fight leads to exports

Published 03/30/2011, 01:54 PM
Updated 03/30/2011, 01:56 PM

* Ouattara forces near San Pedro, major cocoa export hub

* Unclear if EU prepared to quickly lift shipping curbs

* Cocoa stocks brimming at dockside warehouses

By Loucoumane Coulibaly

ABIDJAN, March 30 (Reuters) - Ivory Coast cocoa farmers and traders are hopeful a dramatic sweep south by the country's former rebel fighters could soon pave the way for a partial resumption of cocoa exports.

Output from the world's top cocoa grower has been blocked since late January after a dispute over who won the West African country's presidential election triggered an export ban and EU restrictions on shipping at its ports.

More than 1 million tonnes of cocoa have reached Ivorian ports since the current season began in October, but at least 450,000 tonnes of that is believed to be languishing in warehouses at the dock side, at risk of rotting.

The dispute has broken into open conflict between the country's former rebels, now loyal to internationally backed presidential claimant Alassane Ouattara, and the national army supporting incumbent Laurent Gbagbo.

The United Nations, Western nations and African states have recognised Ouattara as the poll's legitimate winner.

A dramatic offensive in recent days by Ouattara forces has put them within 130 km (80.78 miles) of the coastal town of San Pedro, home to Ivory Coast's second biggest export port, and within striking distance of the commercial capital Abidjan.

"If (Ouattara's) forces capture the port of San Pedro, we believe that exports of beans that were previously blocked will resume," said a purchases manager for a major export company, who asked not to be named.

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"There will be a sigh of relief because we'll be able to work again. We would not hesitate to pay taxes to the Ouattara government," he added.

Other exporters said if San Pedro, where more than a third of Ivorian cocoa is shipped, were to fall to Ouattara forces there would likely be some delay to a restart in exports pending a structure to pay taxes to the Ouattara government and arrangements by traders for the arrival of ships.

The European Union imposed restrictions on EU vessels operating at Ivorian ports in January in an effort to squeeze Gbagbo, days after Ouattara declared a ban on cocoa exports for the same reason.

EU officials were not immediately available to comment on whether the shipping restrictions would be amended if San Pedro came under Ouattara's control.

Cocoa futures fell to the lowest point in over two months on Wednesday as gains by pro-Ouattara forces increased prospects for an end to the crisis.

"Whether there will be a rapid opening of the captured ports to cocoa exports is still being doubted but it certainly seems possible," one cash trader said.

"Rapid exports would probably require a scaling-back of EU sanctions and the EU is not well known for making very quick decisions on matters like this."

Ivory Coast produces about 1.2 million tonnes of cocoa per year, or about a third of global supply.

Farmers have complained the export halt has decimated buying interest, leading farmgate prices to dive and growers to leave ripe beans unharvested as they pursue subsistence crops on spare land to feed their families.

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"If the capture of the port of San Pedro will allow exporters to start buying from us again, that would be good news for us. All of the farmers are tired and can't wait for buying to start again," said farmer Salam Kone in Soubre.

Industry players noted any fighting in Abidjan, a Gbagbo stronghold, would be more likely to be protracted with exports there remaining at a standstill.

Moving beans from Abidjan warehouses to San Pedro for shipment in the meantime would be difficult.

"Gbagbo's camp would try to prevent that," said a buyer from a European exporter.

(Additional reporting by Sarah McFarlane, Michael Hogan in Hamburg; writing by Richard Valdmanis; editing by Jason Neely)

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