Nigeria seeks to enhance its cocoa production amidst rising global prices, targeting 500,000 tonnes by 2024-2025. Local firms are investing, but challenges remain due to sustainability concerns and smallholder farmer limitations. Regulatory efforts are underway to stabilize the sector.
Nigeria is aiming to capitalize on the rising global cocoa prices, which reached a record $12,000 per tonne in December. This surge has prompted increased interest in developing Nigeria’s cocoa sector to potentially rival leading producers like Ivory Coast and Ghana, both of which have faced challenges such as climate change and diseases affecting their crops.
With cocoa becoming a focal point for economic diversification away from oil, local firms are increasingly investing in cocoa production. Recently, British development finance contributed $40.5 million to the Nigerian agribusiness company Johnvents, exemplifying the growing interest. Nigeria currently stands as the world’s seventh largest cocoa producer, yielding over 280,000 tonnes in 2023 with an ambitious target of reaching 500,000 tonnes by the 2024-2025 season.
Though executive director Patrick Adebola casts some doubt on achieving the 2024-2025 target, he remains optimistic about rehabilitating and establishing new cocoa plantations in the coming years. He notes that Nigerian farmers face greater volatility in cocoa prices compared to their Ivory Coast and Ghana counterparts, where prices are regulated.
While cocoa futures have decreased from their December peak, they remain significantly inflated, averaging over $8,000 per tonne compared to the typical range of $2,000 to $3,000 prior to the price surge. Comrade Adeola Adegoke from the Cocoa Farmers Association stated there is active participation from individuals across various levels eager to benefit from current prices.
In contrast, Ivory Coast and Ghana, which are the top two cocoa producers, faced difficult harvests due to adverse weather and crop disease. Despite Nigeria’s cocoa industry being relatively resilient to climate impacts, expanding cultivation may pose environmental risks. Regulatory efforts have been introduced, exemplified by the National Cocoa Management Committee to support farmer development while regulating the industry.
However, the push for monocrop cocoa plantations raises sustainability concerns. Research highlights that growing cocoa alongside shade trees could promote biodiversity and environmental health. Challenges in the sector are amplified as most cocoa is cultivated by smallholders, with farmers like Peter Okunde expressing difficulties in accessing both funds and land necessary for expansion.
Despite the mention of land constraints, John Alamu from Johnvents notes that land availability is not the primary issue, emphasizing the need for a comprehensive approach that includes support in seedling provision and training in sustainable agricultural practices. A concerted effort could help restore Nigeria’s leadership in the global cocoa market.
In summary, Nigeria is positioning itself to emerge as a significant player in the global cocoa market, encouraged by soaring prices and local investment interests. However, achieving ambitious production targets faces challenges, including the need for regulations to ensure sustainable practices and support for small-scale farmers. Balancing expansion with environmental considerations will be crucial for the long-term success of Nigeria’s cocoa industry.
Original Source: www.hindustantimes.com
