Cocoa crisis builds in Ivory Coast

The world’s eyes may be on Libya, Col. Gaddafi’s battle to retain power and the rising oil price.

But further down the African coast, perched on the Gulf of Guinea, lies Ivory Coast, where Laurent Gbagbo is fighting to stay in office after losing elections last year, and the country is on the brink of civil war, forcing up the price of cocoa to near 32-year highs.

Late on Monday, Gbagbo’s government announced it would buy beans at a fixed price from farmers and then try to sell them on the world market, in a de-facto nationalisation of the sector. In response, Ouattara – the internationally recognised winner of the election – has said that any exporter that co-operates with Gbagbo will lose their licenses when he takes power in the world’s biggest producer of cocoa.