Nigeria is aiming to enhance its cocoa production in light of soaring global prices, seeking investments and expanding its capabilities. The government targets 500,000 tonnes by 2024-2025 to become a major player behind Ivory Coast, Ghana, and Indonesia. Despite environmental concerns and farmer challenges, optimism remains high for the future of Nigerian cocoa.
Nigeria is seeking to capitalize on the burgeoning cocoa market, aiming to enhance its position in the global cocoa industry. The country, which has faced economic challenges tied to its oil dependence, is experiencing renewed investor interest in cocoa, especially due to record global prices reaching $12,000 per tonne in December. Patrick Adebola, executive director at the Cocoa Research Institute of Nigeria, remarked, “The farmers have never had it so good.”
More than a dozen local enterprises are considering investments or production expansions in the cocoa sector this year. Notably, the British government’s development finance arm has invested $40.5 million in Nigerian agribusiness company Johnvents to foster growth in this area. According to the most recent statistics from the UN’s Food and Agriculture Organization, Nigeria ranks as the world’s seventh-largest cocoa bean producer, generating over 280,000 tonnes in 2023.
With an ambitious goal of reaching 500,000 tonnes by the 2024-2025 season, Nigeria hopes to ascend to the fourth position among cocoa producers, following Ivory Coast, Ghana, and Indonesia. While Adebola remains skeptical about achieving this target in the short term, he is optimistic about the potential for growth in the coming years. The increased interest in reinvigorating old plantations or creating new ones indicates a positive trend within the sector.
Compared to Ivory Coast and Ghana, where cocoa prices are controlled, Nigerian growers face significant volatility in the cocoa market. Although cocoa futures in New York have dipped from their December highs, they still exceed $8,000 per tonne, a significant increase from the previous usual range of $2,000 to $3,000. Comrade Adeola Adegoke, president of the Cocoa Farmers Association of Nigeria, stated, “Individuals are going into cocoa production at every level… to make sure they also enjoy the current price.”
Ivory Coast continues to dominate cocoa production with over two million tonnes in 2023, while Ghana follows with 650,000 tonnes. However, both nations endured poor harvests due to adverse weather and diseases, leading to a global supply shortage that spiked cocoa prices. Nigeria’s cocoa industry has not yet faced the detrimental impacts of climate change; however, expanding production could carry environmental implications.
The Nigerian government is actively promoting the cocoa industry through the National Cocoa Management Committee, established in 2022 to regulate the sector and support farmers. Despite these advancements, there are ecological concerns related to the promotion of “full-sun” monocrop plantations, which focus solely on cocoa beans, neglecting the benefits of companion planting. A study published in Agroforestry Systems warns that monoculture may hinder sustainability compared to mixed cropping with shade trees, which enhances biodiversity and environmental health.
Challenges in developing the cocoa sector persist, chiefly due to the prevalence of small-scale farmers in Nigeria. Peter Okunde, a farmer from Ogun state, highlighted the lack of capital and land to increase his four-hectare cocoa plantation, stating, “Land is the major instrument farmers need… and the money to develop it.” Conversely, John Alamu, managing director of Johnvents, suggested that the issue is not the availability of land but rather a comprehensive strategy. He emphasized the need for government support similar to initiatives in other nations, which includes providing quality seedlings, training in agronomy, and promoting sustainable agricultural practices.
As Nigeria seeks to strengthen its position in the cocoa industry amidst rising global prices, there are both opportunities and challenges ahead. The increasing interest from local firms and foreign investments suggests a promising future for Nigerian cocoa production. However, addressing environmental sustainability, smallholder farmers’ needs, and effective regulations will be crucial for achieving the government’s ambitious production targets. With the right support system, Nigeria could potentially reclaim its leadership in cocoa cultivation and bolster its economy.
Original Source: business.inquirer.net
