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Food Firm Suspends Cocoa Purchases in Ivory Coast

25 January 2011 04:59 (UTC +04:00)

Baku â€“ APA. A U.S. food company says it has halted cocoa purchases in Ivory Coast, after one of the country’s two rival presidents called for an export ban on the commodity, APA reports quoting â€œThe Voice of Americaâ€.

Minnesota-based Cargill, which typically buys a large chunk of the Ivorian cocoa crop, announced what it called its â€œtemporary suspensionâ€ Monday.

Earlier, Alassane Ouattara, the internationally-recognized leader of Ivory Coast, called for a one-month ban on cocoa and coffee exports.

The move is aimed at depriving funds to incumbent leader Laurent Gbagbo, who has refused to cede power to Mr. Ouattara despite strong international pressure.

It remains unclear whether other cocoa producers will comply with Mr. Ouattara’s demand. However, cocoa prices on the London market soared nearly 4 percent Monday because of supply concerns.

Most countries recognize Mr. Ouattara as the winner of the November presidential election. Incumbent President Gbagbo insists that he won the poll and retains control of state institutions, including the ports from which cocoa exporters operate.

Pressure on Mr. Gbagbo mounted Saturday, when West African leaders forced the head of the regional bank to resign. The official had defied an order to cut off Mr. Gbagbo’s access to funds.

Mr. Gbagbo has withdrawn a reported $160 million from the bank in recent weeks, enabling him to pay the salaries of soldiers and civil servants.

The Economic Community of West African States has threatened to remove Mr. Gbagbo through military means if necessary. Writing in a Nigerian newspaper Monday, Nigeria’s foreign minister said ECOWAS wants a U.N. Security Council resolution authorizing the use of force.

On Monday, lawyers filed two separate lawsuits with the ECOWAS regional court, seeking to stop any military action against Mr. Gbagbo.

The United States and European Union have imposed a series of travel and financial sanctions on the Gbagbo government.