Nigeria seeks to elevate its cocoa production through significant investments as global cocoa prices rise. The government aims for a production of 500,000 tonnes by 2025, facing challenges with small-scale farming and the need for sustainability in practices. With rising interest from investors, Nigeria aims to enhance its global cocoa market presence.
Nigeria is attempting to capitalize on rising global cocoa prices, aiming to enhance its role in the cocoa market and compete with major producers like Ivory Coast and Ghana. Climate change and diseases have severely impacted cocoa production in these countries, presenting an opportunity for Nigeria to expand. As cocoa prices surged to a notable $12,000 per tonne in December, interest in Nigeria’s cocoa sector has revived, particularly among local investors.
Recently, more than a dozen domestic companies have shown interest in investing or expanding cocoa farms, with the British government’s development finance branch investing $40.5 million into the Nigerian agribusiness company, Johnvents. Nigeria, ranked as the world’s seventh-largest cocoa producer, produced over 280,000 tonnes of cocoa in 2023, according to the UN’s Food and Agriculture Organization.
Looking ahead, the Nigerian government has proposed an ambitious goal of producing 500,000 tonnes by the 2024-2025 season, which would elevate Nigeria to the fourth-largest cocoa producer globally. However, experts like Patrick Adebola from the Cocoa Research Institute express skepticism about reaching this target this season but believe in the potential for future success with investments in rehabilitating and establishing new plantations.
The country’s cocoa farmers face more price volatility compared to their counterparts in Ivory Coast and Ghana due to the latter countries’ price regulations. Currently, cocoa futures have decreased from their December peak but remain above $8,000 per tonne, a significant increase compared to historical price ranges of $2,000 to $3,000 per tonne. “Individuals are going into cocoa production at every level… to make sure they also enjoy the current price,” noted Comrade Adeola Adegoke from the Cocoa Farmers Association of Nigeria.
While Ivory Coast remains the largest cocoa producer, with over two million tonnes produced in 2023, Nigeria’s production has largely been protected from climate change’s adverse effects so far. Nevertheless, expanding production could entail environmental risks if not managed sustainably. Recent government initiatives aim to regulate and support this largely unregulated sector through the National Cocoa Management Committee, established in 2022.
Despite dialogues on agricultural modernization, concerns have been raised regarding the sustainability of monocrop farming approaches that could harm biodiversity and environmental health. Small-scale farmers represent a significant portion of Nigeria’s cocoa industry, and many face challenges such as insufficient capital and land. Farmer Peter Okunde highlights the need for better access to both land and funding to expand his operations. Conversely, John Alamu from Johnvents argues that the focus should not only be on land but also on essential support mechanisms like quality seedlings and training in sustainable practices.
In summary, Nigeria is poised to increase its cocoa production in response to soaring global prices and a supply shortage in other leading cocoa-producing countries. Despite the ambitious targets and investment interest, challenges such as land access, financial limitations, and sustainable farming practices remain critical factors to address. By improving support systems for farmers and investing in sustainable approaches, Nigeria could reclaim its competitive position in the global cocoa market.
Original Source: www.hindustantimes.com
