An Ivory Coast cocoa market regulator said that it will not allow bean grinders to accumulate stockpiles beyond the authorized limits set during the main harvest season running from October 2023 to March 2024.

According to Reuters, cocoa futures have recently hit record highs due to an expected drop in production from Ivory Coast and Ghana, the world’s top two producers of cocoa beans, accounting for more than 70% of the global output. The Ivory Coast’s cocoa bean market is expected to fall by 25% this season versus last year due to poor weather conditions.

Cocoa bean grinders and exporters from Ivory Coast have an annual purchasing limit that aligns with their export contracts. However, the regulator — the Coffee and Cocoa Council (CCC) — gives grinders an exemption that allows them to stockpile 45 days worth of beans for grinding operations, giving them an advantage over other traders while ensuring a steady supply to maintain procedures.

Yves Brahima Kone, the managing director of the CCC, said the exemption would be unfair to exporters who will struggle to gain access to the volumes needed to fulfill their export contracts, given the current context.

"We will not allow bean processors to purchase beyond the purchase limit this year because everyone may not be able to get the cocoa they need," Kone said. "We are forced to make this difficult decision. There won't be enough cocoa for everyone.”

Ivory Coast has a total grinding capacity of 712,000 tons, allowing it to compete with the Netherlands as the world’s top cocoa bean grinder.