Nigeria is seeking to expand its cocoa production amidst soaring global prices, aiming to rival top producers Ivory Coast and Ghana. The government targets 500,000 tonnes for 2024-2025 while facing challenges in farmer support and sustainability practices. With rising investment interest, Nigeria’s cocoa sector may experience significant growth in the coming years.
Nigeria is aiming to capitalize on the recent surge in global cocoa prices, with a goal of enhancing its position in the cocoa sector. The country is looking to become a more formidable competitor against leading producers, Ivory Coast and Ghana, whose crop production has been affected by climate change and disease. With cocoa prices reaching a record high of $12,000 per tonne in December, interest is growing among investors in Nigeria’s cocoa beans.
Local firms are responding to the favorable price environment, as several have shown interest in expanding or investing in cocoa production. Nigerian agribusiness company Johnvents recently secured $40.5 million from the British government’s development finance institution for its operations. As per the UN’s Food and Agriculture Organization, Nigeria ranked as the world’s seventh largest cocoa bean producer, generating over 280,000 tonnes in 2023.
The government has ambitious plans, targeting a production goal of 500,000 tonnes for the 2024-2025 season, which could elevate it to fourth place globally. Patrick Adebola from the Cocoa Research Institute of Nigeria expresses skepticism about reaching this target immediately but sees potential in the upcoming years as interest in improving old versus new plantations grows.
Unlike producers in Ivory Coast and Ghana, where prices are regulated, Nigerian growers experience greater fluctuations in the cocoa market. Cocoa futures remain high at over $8,000 per tonne despite a decline from the December peak. The Cocoa Farmers Association of Nigeria has noted the rising number of individuals starting cocoa production to take advantage of current favorable prices.
While Ivory Coast maintains its position as the world’s largest cocoa grower, Nigeria’s overall production has not faced severe impacts from climate change yet, raising environmental concerns over expanded monoculture practices. The National Cocoa Management Committee was instituted in 2022 to improve industry regulation and support farmers, though modernizing agriculture has led to the rise of “full-sun” cocoa plantations, which may be less sustainable than shaded cultivation techniques.
Challenges remain as Nigeria’s cocoa is primarily produced by small-scale farmers who often lack sufficient land and capital. Farmer Peter Okunde highlights the importance of having both land and financial support to grow his plantation. However, John Alamu from Johnvents states that addressing the quality of support for farmers rather than land area is crucial. He suggests that acquiring quality seedlings, training in best practices, and emphasizing sustainable agriculture are vital steps to reclaim Nigeria’s leadership in cocoa production.
Nigeria is uniquely positioned to enhance its cocoa production thanks to soaring global prices, yet challenges persist in terms of sustainability and smallholder support. The government’s ambitious production targets reflect a strategic shift towards agriculture diversification aimed at reducing oil dependence. Ensuring a comprehensive support system for farmers, including regulation and sustainable practices, will be key to achieving significant growth in the cocoa sector.
Original Source: www.iosconews.com
