Nigeria’s Ambitious Cocoa Production Goals Amidst Rising Global Prices
Nigeria is seeking to leverage rising cocoa prices to amplify its role in cocoa production, competing with top growers Ivory Coast and Ghana. With global prices peaking at $12,000 per tonne, the sector is attracting investment and aiming to increase output significantly. Although challenges exist, including sustainability concerns and small-farmer support, there is optimism about future potential in the cocoa industry.
Nigeria is aiming to capitalize on the rising global cocoa prices, hoping to become a significant player in the cocoa market alongside top producers, Ivory Coast and Ghana. With cocoa prices reaching a record $12,000 per tonne in December, the Nigerian cocoa sector is garnering renewed interest from investors. “The farmers have never had it so good,” stated Patrick Adebola, executive director at the Cocoa Research Institute of Nigeria, highlighting the positive impact on farmers’ livelihoods.
Interest in the Nigerian cocoa industry is also evident as over a dozen local companies plan to invest or expand their production this year. Notably, the British government’s development finance initiative has provided $40.5 million to Nigerian agribusiness company, Johnvents. Currently, Nigeria ranks as the seventh largest cocoa bean producer with an output exceeding 280,000 tonnes in 2023, according to the UN’s Food and Agriculture Organization.
The government has ambitious plans for increasing production to 500,000 tonnes in the 2024-2025 season, aiming to elevate Nigeria to fourth place in global cocoa production. While Adebola expresses skepticism about reaching this target immediately, he remains optimistic for future progress due to increasing attention on rehabilitating old plantations and establishing new ones.
Nigerian cocoa farmers are currently more vulnerable to fluctuations in global market prices compared to their counterparts in Ivory Coast and Ghana, as those countries regulate their cocoa prices. Despite a drop in futures contracts in New York, cocoa prices still remain relatively high at over $8,000 per tonne, emphasizing the appeal of the sector. “Individuals are going into cocoa production at every level… to make sure they also enjoy the current price,” said Comrade Adeola Adegoke, president of the Cocoa Farmers Association of Nigeria.
While Ivory Coast leads cocoa production with over two million tonnes and Ghana follows with 650,000 tonnes in 2023, both nations have faced challenges due to adverse weather and diseases, causing supply shortages and price spikes. Nigeria’s cocoa production is currently less affected by climate change, but scaling operations may pose environmental challenges due to the shift towards monocrop planting practices.
The establishment of the National Cocoa Management Committee in 2022 signifies government efforts to regulate and support the cocoa sector. Nevertheless, modern agricultural practices emphasizing monoculture can be less sustainable compared to agroforestry approaches which promote biodiversity.
Challenges persist for the expansion of cocoa farming, particularly for small-scale farmers like Peter Okunde, who faces capital and land constraints. He emphasized the need for more accessible land and funding to support farming. In contrast, John Alamu of Johnvents noted that the issue is not merely land but also the necessity for a well-rounded approach that includes providing seedlings, training, and focusing on sustainable practices, which he believes are crucial to restoring Nigeria’s prominence in the cocoa industry.
In conclusion, Nigeria is poised to strengthen its position in the global cocoa market, fueled by soaring prices and growing investor interest. With supportive government measures and the potential to rehabilitate existing farms, there appears to be optimism for the future. However, challenges such as environmental sustainability and the needs of small-scale farmers must be addressed to realize these ambitions and position Nigeria as a significant producer in the sector.
Original Source: www.hindustantimes.com
