Global restructuring and liberalisation: Cote d'Ivoire and the end of the international cocoa market?
The restructuring of the world cocoa market has concluded with the liberalisation of the sector in the world's leading producing country - Cóte d'Ivoire - clearing the way for domination by an oligopoly of global companies. This paper describes how Cóte d'Ivoire's share of world production created an illusion but not the reality of market power. In the 1990s, in the wake of failed attempts to influence the world market, the Ivorian cocoa experienced a series of upheavals that were both pivotal to broader changes in the global market and a reflection of them. The converging strategies of new Ivorian firms and of the major global grinding companies resulted in increased vertical integration in Cóte d'Ivoire, exemplified in the development of "origin grinding". Later, financial difficulties encountered by Ivorian firms led to global companies taking control. Amongst the results of these changes are a decline in the role of traders, a redefinition of relationship between grinders and chocolate manufacturers, and a standardisation of cocoa quality around an average "bulk" level. This signals the end of "the producing countries" and of the global market.
| Main Authors: | , |
|---|---|
| Format: | biblioteca |
| Published: |
Nov-
|
| Subjects: | CACAO, MERCADEO, LIBERALIZACION DEL INTERCAMBIO, ACUERDOS COMERCIALES, COTE D'IVOIRE, |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| Summary: | The restructuring of the world cocoa market has concluded with the liberalisation of the sector in the world's leading producing country - Cóte d'Ivoire - clearing the way for domination by an oligopoly of global companies. This paper describes how Cóte d'Ivoire's share of world production created an illusion but not the reality of market power. In the 1990s, in the wake of failed attempts to influence the world market, the Ivorian cocoa experienced a series of upheavals that were both pivotal to broader changes in the global market and a reflection of them. The converging strategies of new Ivorian firms and of the major global grinding companies resulted in increased vertical integration in Cóte d'Ivoire, exemplified in the development of "origin grinding". Later, financial difficulties encountered by Ivorian firms led to global companies taking control. Amongst the results of these changes are a decline in the role of traders, a redefinition of relationship between grinders and chocolate manufacturers, and a standardisation of cocoa quality around an average "bulk" level. This signals the end of "the producing countries" and of the global market. |
|---|