Ivory Coast will unveil its cocoa industry reform plan within three months, and the proposals will balance the needs of private export firms and local producers, its agriculture minister said late on Monday. Ivorian cocoa output has hit a record this season, but analysts fear the top world producer will fall into decline if reforms are not adopted to combat the effects of years of neglect and warfare on the country's plantations.
"For cocoa sector reform, the general outline will be completed in the next two or three months," said Agriculture Minister Coulibaly Sangafow following a meeting with the head of giant export firm Olam. "We are in discussions with donors and we will make some agreements, but I want to encourage continued investment in the sector because private operators will maintain their role under the reform," he said.
Ivory Coast farmers have long complained they are underpaid for their beans and have been pushing for a strictly enforced fixed price that would guarantee them profits and the means to maintain their plantations. But private firms are keen to see reform measures that improve volumes and quality without cutting into their margins. Olam, one of the world's top four cocoa buyers, has said it is waiting for the reforms before deciding whether to invest in new processing and bean treatment plants in Ivory Coast.
It is also weighing a planned $80-$100 million investment in sugar processing, which it said has been held back by smuggling of finished sugar into the country. Sangafow said Ivory Coast's government was planning to apply pressure on India to ease a 35 percent import duty on finished cocoa products, which he said was hindering Ivory Coast's ability to boost finished product exports.
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