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No Major Cocoa Problems After Strike - Cargill

Source: Reuters
26/10/2006

London, Oct 25 - A senior executive with Gerkens Cacao B.V., a unit of U.S. agri-business giant Cargill, said on Wednesday he saw no major supply problems from last week's three-day strike by Ivorian cocoa growers.

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"It is not a major problem. There have been similar strikes in the past," Paul Naar, managing director of Gerkens Cacao B.V., told Reuters on the sidelines of a one-day confectionery conference organised by Agra Informa Ltd.

The main coffee and cocoa farmers association in Ivory Coast backed down from a threat to resume strike action if its demands for higher prices were not met by Wednesday, saying the stoppage remained suspended.

Naar also said he predicted no major changes in cocoa supply patterns in the medium term, with Ivory Coast continuing to play a vital role despite its political problems, and Ghana continuing to grow as a supplier.

"There will be no major shifts," he said, noting that attention would continue to focus on the political situation in top grower Ivory Coast.

"Ghana is growing and has potential to grow further," he added, referring to the world's number two cocoa producer.

"The supply outlook looks steady."

Later, Naar told the conference that he believed that Ivory Coast had potential to expand cocoa production in the years ahead.

"There is more potential in Ivory Coast," Naar said.

"If you look at the last few years, with all the (political) troubles they have had there, farmers who left the country and smuggling, there is tremendous potential (for production) still there," he added.

He said some other countries could emerge as increasingly important cocoa producers, such as Vietnam.

"Vietnam is a possibility but not proven," he said, referring to concerns over its climate.

"The bet is on the producing areas (such as West Africa) where we are at the moment."

The conference ended on Wednesday.



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