A farmers' strike over prices has shut down the Ivory Coast cocoa industry after exporters closed their warehouses.

The country, which produces 40% of the world's cocoa every year, is now facing threats from unions to start torching trucks carrying supplies to ports.

"The price is too low, it's a scandal," said union leader Theodore Zougba. "We are going to burn our cocoa."

Cocoa prices rose 1.3% in New York in response to the action.

Compensation demand

Cocoa production got off to a slow start in the Ivory Coast this year after the government set farmgate prices later than usual and wet weather slowed the drying and transport of beans.

Union leaders are demanding $0.75 per kilogram, up from $0.60, and they want prices to be guaranteed.

Unions did not call on farmers to stop harvesting the crop and cocoa grinding plants in the West African country were still working using existing cocoa stocks.

The cocoa industry employs 600,000 Ivorians and produces about 1.4 million beans a year.