An alarming surge in cocoa smuggling from Ivory Coast to neighboring Guinea has been reported, with exporters estimating that approximately 50,000 metric tons were illegally transported between October and December 2024. This significant volume, valued at roughly $573 million based on current global prices, highlights the growing problem of cocoa theft.
The sharp increase in cocoa prices over the past year has significantly incentivized smuggling activities. Ivorian cocoa smuggled across the border fetches a significantly higher price of 5,000 CFA francs ($7.95) per kilogram compared to the government’s fixed price of 1,800 CFA francs per kilogram paid to farmers.
Smuggled Ivorian cocoa is primarily exported to Asian countries like Indonesia and Malaysia.
“Because of corruption, cocoa smuggling is accelerating, and we risk not having the volumes we need to fulfill our contracts,” lamented the director of a European export company operating in Abidjan.
“Our suppliers prefer smuggling, which is much more profitable, and I understand them,” echoed the head of another Abidjan-based export company.
Exporters reported a significant smuggling incident on December 24th, with an estimated 8,500 tons of Ivorian cocoa crossing the border.
Cocoa prices reached a record high of $12,931 per metric ton in New York in December, driven by concerns over a fourth consecutive season of poor harvests in major producing countries, Ivory Coast and Ghana.
In an effort to curb smuggling, the Ivorian government announced stricter measures in October, including the forfeiture of illegal proceeds, passport withdrawals, and driving license suspensions.
The Coffee and Cocoa Council (CCC), the sector regulator, is currently exploring additional strategies to combat this growing challenge.