Nigeria Aims to Capitalize on Rising Cocoa Prices and Boost Production
Nigeria seeks to expand its cocoa production amidst soaring global prices, aiming to become a bigger player in the market to rival Ivory Coast and Ghana. The country’s cocoa production is currently growing, with ambitions to reach 500,000 tonnes by 2025, despite challenges in cultivation practices and support for small farmers.
Nigeria is increasingly positioning itself to capitalize on the rising cocoa prices, with aspirations to enhance its role in the global cocoa market. The country aims to rival top cocoa producers like Ivory Coast and Ghana, which have faced significant crop losses due to adverse climate conditions and diseases. In December, global cocoa prices reached unprecedented levels of $12,000 per tonne, encouraging investors to take notice of Nigeria’s cocoa potential.
The Cocoa Research Institute of Nigeria’s executive director, Patrick Adebola, noted that farmers are currently experiencing favorable conditions due to heightened demand for cocoa beans. There is growing investment interest, with local firms expanding their operations and the British government’s development finance institution recently investing $40.5 million into Johnvents, a Nigerian agribusiness.
As of 2023, Nigeria ranks as the world’s seventh largest cocoa producer, yielding over 280,000 tonnes according to the UN’s Food and Agriculture Organization. The Nigerian government has ambitious plans to increase production to 500,000 tonnes by the 2024-2025 season, which would position Nigeria in fourth place globally, after Ivory Coast, Ghana, and Indonesia.
Though Adebola expresses skepticism about meeting this ambitious target within the current season, he is optimistic that growth can be achieved in subsequent years, particularly through the revitalization of older plantations and establishment of new ones. He highlighted that Nigerian farmers experience greater volatility in cocoa prices compared to their counterparts in Ivory Coast and Ghana, where prices are regulated.
Despite a recent decline in cocoa futures in New York, prices remain elevated at over $8,000 per tonne, compared to historic ranges of $2,000 to $3,000. Adeola Adegoke, president of the Cocoa Farmers Association of Nigeria, remarked on the increased engagement in cocoa production driven by current favorable price levels.
Nigeria’s cocoa production has not been severely impacted by climate change, unlike Ivory Coast and Ghana, which reported substantial harvest reductions last year due to adverse weather and disease outbreaks. However, the increase of cocoa cultivation poses potential environmental risks due to unsustainable agricultural practices.
To address these issues, Nigeria established the National Cocoa Management Committee in 2022, aimed at regulating the cocoa sector and supporting farmers. Concerns have been raised regarding the trend towards “full-sun” monocrop cultivation that neglects biodiversity and sustainable practices. Research indicates that intercropping with shade trees may create a healthier and more sustainable ecosystem.
Challenges remain for scaling the cocoa industry, particularly as a majority of production comes from smallholder farmers. Farmer Peter Okunde shared his difficulties in accessing land and funding for the growth of his cocoa farm. However, John Alamu, managing director of Johnvents, contended that land availability is not the primary concern. He emphasized the need for comprehensive support measures for farmers, including access to seedlings, training, and a focus on sustainable agricultural practices as key to revitalizing Nigeria’s cocoa leadership.
In summary, Nigeria is striving to enhance its position in the global cocoa market as prices soar, with aspirations to rival established producers like Ivory Coast and Ghana. Despite challenges such as environmental impacts and support for smallholder farmers, there is optimism around potential growth and investment in the sector. The government’s efforts towards better regulation and sustainable practices may pave the way for improved agricultural outcomes in the coming years.
Original Source: www.iosconews.com
