Cocoa Shortage Sparks Dispute Between Traders, Ivorian Shippers

The cocoa industry is grappling with a severe shortage that has led to a dispute between traders and Ivorian shippers. The global cocoa supply is expected to decline by almost 11% over the 2023/2024 season due to climate change-induced droughts in West Africa, which produces around 80% of the world's cocoa. This shortage has driven cocoa prices to record highs, reaching nearly $10,000 per metric ton in March 2024. The rising prices and reduced availability of cocoa beans have put significant pressure on both traders and shippers, leading to a dispute between the claimants and the first defendant, trading as Rockwinds.



The Federation of Cocoa Commerce (FCC) has stepped in to address this dispute by providing an arbitration service. The FCC's arbitration service is internationally respected and offers a fair, timely, and economical form of dispute resolution for parties using its contracts. In the case of the dispute between the claimants and Rockwinds, the parties agreed to arbitration under the FCC's rules. The FCC aims to deliver sustainable benefits to its members, assist cocoa growers in achieving and maintaining quality standards, and help members deliver high-quality products to their customers.

The potential outcomes of the arbitration process could include resolution of the dispute, compensation or damages, contract termination or modification, and maintaining or enhancing the FCC's reputation as a trusted and effective dispute resolution platform. The arbitration process could also help ensure that both parties comply with industry standards and best practices, contributing to the overall sustainability and quality of the cocoa trade.

In conclusion, the cocoa shortage has led to a dispute between traders and Ivorian shippers, with the FCC stepping in to provide an arbitration service. The arbitration process aims to resolve the dispute, maintain industry standards, and ensure the sustainability and quality of the cocoa trade. As the cocoa industry continues to face challenges, it is crucial for all parties involved to work together to address these issues and find sustainable solutions.