COCOA COUNCIL CHAIRMAN SEEKS BUFFER COMPROMISE
International Cocoa Organization, ICCO,
Council chairman, Denis Bra Kanon, said he will attempt to
reach a compromise on buffer stock rules for the International
Cocoa Agreement.
    Bra Kanon called for bilateral consultations among
producers and consumers Thursday morning to resolve outstanding
differences on how much non-member cocoa the buffer stock can
purchase and differentials to be fixed for different origin
cocoa, consumer delegates told reporters.
    Bra Kanon is expected to meet with about eight delegations
individually in attempt to iron out remaining problems.
    Producers and consumers indicated support "in principle" for
the draft buffer stock rules package formulated over the past
week by a small working group, consumer delegates said.
    Despite remaining differences delegates remained confident
a buffer stock accord would be agreed to by Friday when the
council session ends, but certain technical points need further
clarification, the delegates said.
    Certain consumers are concerned that differentials included
in the draft buffer stock package are out of line with market
realities, consumer delegates said.
    Unless these are modified there are fears it would promote
purchases of quality cocoas, such as Ghana origin, which are
normally required by manufacturers, they said.
    Restrictions on buffer stock purchases of non-member cocoa
might lead to a supply overhang in Malaysian cocoa, which would
depress prices, they added.
 Reuter
