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About 50,000 tons of Ivorian cocoa smuggled to Guinea in Oct-Dec

Cocoa smuggling from Ivory Coast to Guinea is taking on stressing percentages, exporters informed Reuters, approximating that some 50,000 metric lots worth about $573 million at current international prices were unlawfully transferred between October and December.

A more than doubling of cocoa rates in 2015 has actually provided an additional incentive to smugglers. Sources informed Reuters that Ivorian cocoa smuggled throughout the border deserved 5,000 CFA francs ($ 7.95) per kilogram, while Ivory Coast's fixed rate paid to cocoa farmers was set at 1,800 CFA francs per kg in September.

Once in Guinea, Ivorian cocoa is exported to Asian nations such as Indonesia and Malaysia, exporters state.

Due to the fact that of corruption, cocoa smuggling is speeding up and we risk not having the volumes we require to fulfil our contracts, said the director of a European export business based in Ivory Coast's industrial capital Abidjan.

Our suppliers choose smuggling, which is much more rewarding, and I understand them, stated the head of another Abidjan-based export business.

Exporters based in Ivory Coast said that around 8,500 loads of Ivorian cocoa crossed the verge on Dec. 24.

Cocoa rates struck a record $12,931 per metric load in New York City in December on projections for bad crops for a 4th succeeding season from top producers Ivory Coast and Ghana.

The Ivorian government revealed more actions in October focused on discouraging smugglers, including surrendering the earnings of any offenses, withdrawing passports and suspending driving licences.

A source at sector regulator the Coffee and Cocoa Council ( CCC) stated the country was looking at more ways to deal with smuggling.

(source: Reuters)