Ivory Coast aims for 50% local cocoa processing within 2 years

By Ange Aboa

ABIDJAN, June 27 (Reuters) - Ivory Coast plans to increase domestic cocoa processing to 50% of its national output within two years, up from 42% currently, the head of the national regulator said while inaugurating its second 50,000-metric ton grinding plant.

Cocoa processing is seen as essential for boosting local industry and supporting economic growth, a key priority for the West African nation, managing director of Ivory Coast's Coffee and Cocoa Council (CCC) Yves Brahima Kone said.

Ivory Coast, which currently processes 750,000 tons of cocoa annually, or 42% of its output, has made investments to boost its domestic industry, Kone said at the inauguration of the plant in the country's commercial capital Abidjan.

About five plants are currently under construction and will be operational within two years, while older facilities will be upgraded, he added.

"Thanks to our investments and many others in progress, we have an installed grinding capacity of 1.06 million tons, which is over 50% of our production," Kone told Reuters.

The regulator inaugurated the Abidjan grinding plant on Thursday in a partnership with a Singaporean subsidiary of Malaysian cocoa group Guan Chong Berhad GNCH.KL.

It has a capacity of 50,000 tons, but it will increase to 110,000 tons in two years' time. Its warehouses have a storage capacity of 150,000 tons of cocoa bags, the largest single-site storage capacity in the world's top producer.

A plant in San Pedro, at the port in the southwest of the country, will double its capacity to 100,000 tons within 2 years and match Abidjan's storage capacity.

When upgrades are complete, the regulator's grinding company Transcao will have a total grinding capacity of 210,000 tons and two warehouses with storage room for 300,000 tons of cocoa beans.

"To accelerate the processing of cocoa beans in Ivory Coast, we needed to ... invest ourselves in the sector. This gives confidence to others, who know that we too are committed and are taking the same risks," Kone said.