Nigeria is looking to boost its cocoa production to challenge top producers like Ivory Coast and Ghana amidst soaring cocoa prices reaching $12,000 per tonne. With a goal of 500,000 tonnes by 2024-2025, the country is focusing on regulatory and supportive measures for farmers but faces challenges in sustainability and resource availability.
Nigeria aims to capitalize on rising cocoa prices, positioning itself as a more significant player in the global cocoa market despite being an oil-dependent economy. With cocoa prices hitting a record $12,000 per tonne in December, investor interest is rekindled in Nigeria’s cocoa sector post a downturn due to climate change and diseases affecting major producers like Ivory Coast and Ghana.
The Nigerian cocoa industry, currently producing over 280,000 tonnes in 2023 according to the UN’s Food and Agriculture Organization, targets a production goal of 500,000 tonnes for the 2024-2025 season. Achieving this would enable Nigeria to surpass its current position as the world’s seventh-largest producer, moving into fourth place behind Ivory Coast, Ghana, and Indonesia.
However, Patrick Adebola from the Cocoa Research Institute expresses skepticism about meeting the target this year, though believes that with increasing support for new plantations and rehabilitation of old ones, it could become feasible in the future. Unlike in Ivory Coast and Ghana, cocoa prices in Nigeria are more volatile due to the absence of price regulation, exposing farmers to market fluctuations.
Cocoa futures, while down from December’s peak, remain over $8,000 per tonne, significantly higher than the average of $2,000 to $3,000 prior to the surge. Cocoa Farmers Association president Comrade Adeola Adegoke notes that individuals are increasingly investing in cocoa production to benefit from current high prices.
Currently, Ivory Coast leads global production with over two million tonnes, followed by Ghana at 650,000 tonnes, both impacted by poor harvests from adverse weather and disease. Nigeria’s cocoa sector, however, has been more resilient, although expanding cultivation has potential environmental risks, especially concerning monocrop practices without forest diversity.
Government initiatives, including the National Cocoa Management Committee established in 2022, aim to regulate the unregulated sector and support farmers. A shift toward monocrop plantations has raised sustainability concerns; studies suggest that integrating shade trees with cocoa can enhance biodiversity and environmental health.
Challenges in scaling the cocoa sector persist, particularly as smallholder farmers dominate production. Many farmers, like Peter Okunde from Ogun, cite lack of capital and land as critical barriers to expansion. John Alamu of Johnvents disagrees, emphasizing that the existing 1.4 million hectares in cocoa production is sufficient, and a comprehensive support approach, focusing on training and sustainable practices, is essential for repositioning Nigeria as an industry leader.
The Nigerian cocoa sector is poised for expansion with ambitions to increase production significantly. This growth is driven by soaring global prices and renewed investments despite challenges posed by market volatility and agricultural practices. The government’s regulatory efforts and farmer support strategies will be crucial in fostering sustainable growth, though environmental concerns and resource limitations must be addressed to successfully scale up production.
Original Source: business.inquirer.net
