The emergence of a new competitor on the Nigerian cocoa market has driven prices up and reduced supply to some exporters, international traders said on Friday.
The flow of beans to the main port of Lagos has picked up in recent weeks after a slow start to the main crop, but dealers said this season's harvest might turn out to be smaller than the last after previous expectations of a strong year.
The new Lagos-based trader paid 180,000-185,000 naira per tonne of beans delivered in the port city of Lagos this week compared with 170,000 naira and below paid by other exporters last week, dealers said. "Business is bad because the margin is now very small. All exporters are suffering," a major trader told Reuters, asking not to be named.
"They are offering higher prices, but buying only small quantities," the dealer said of the new trader, who was selling through two London brokers.
Another exporter said the new trader might be trying to re-establish a position in the Nigerian market abandoned some years ago.
Licensed Buying Agents (LBAs), who buy cocoa upcountry for international traders, said the 2005/06 main crop had picked up after a slow start but saw indications of a shortfall compared with the previous year.