USA Africa Dialogue Series - Good Behavior By The Cocoa Companies

JANUARY 25, 2011, 2:14 P.M. ET

UPDATE:Mars: Ivory Coast Cocoa Ban To Have No 'Short Term' Effect

NEW YORK (Dow Jones)--Candy maker Mars Inc. said Tuesday that a call by Ivory Coast's presidential claimant for a month-long ban on cocoa exports won't affect production in the near term.

Over the weekend, Alassane Ouattara, who is widely held to have won the Nov. 28 election, called for the ban to financially corner his challenger, incumbent Laurent Gbagbo.

Ivory Coast supplies about a third of the world's cocoa, and the export ban sent prices on the IntercontinentalExchange to one-year highs on Monday.

In an emailed statement, Mars, the maker of Snickers and M&Ms said: "We expect that a complete understanding of the export ban and its implications will require some time, but we are certain that in the short term this will not impact our ability to manufacture the chocolate products that our consumers desire."

Agriculture company Cargill Inc. announced Monday that it was temporarily suspending purchases in Ivory Coast. Archer Daniels Midland Co. (ADM) and Barry Callebaut AG (BARN.EB) said they are evaluating the situation. Switzerland-based Barry Callebaut, however, said it has sufficient cocoa stocks to cover its processing needs.

Hershey Co. (HSY) declined to comment on the situation.

On Monday, the U.S. State Department said it endorsed the ban.

"It is part of our strategy to deny Laurent Gbagbo the resources so that he could continue to buy support from the military and political actors," Assistant Secretary Philip J. Crowley said in a briefing. "We hope that this will convince him to step aside."

ICE cocoa for March delivery was recently 1.7% higher on the day at $3,367 a ton.

-By Leslie Josephs, Dow Jones Newswires, 212-416-4055, leslie.josephs@dowjones.com