Nigeria Aims to Boost Cocoa Production Amidst Rising Global Prices

Nigeria is positioning itself to increase cocoa production, driven by high global prices and challenges faced by leading producers. Local investments are gaining momentum with a targeted production goal of 500,000 tonnes. However, environmental sustainability and reliance on small-scale farmers pose challenges to growth in the sector.

Nigeria is aiming to enhance its presence in the cocoa sector amidst rising global cocoa prices, currently at record levels. The country’s enthusiasm is fueled by the struggles faced by top producers, Ivory Coast and Ghana, where crops have been adversely affected by climate change and diseases. In December, cocoa prices surged to an unprecedented $12,000 per tonne, prompting local firms to show significant interest in cocoa investment.

The Cocoa Research Institute of Nigeria has reported that in 2023, Nigeria ranked as the seventh largest cocoa bean producer globally, yielding over 280,000 tonnes. The Nigerian government has set a bold target of 500,000 tonnes for the 2024-2025 season, which could elevate Nigeria to fourth place among cocoa-producing countries. Although executive director Patrick Adebola expressed skepticism regarding the short-term achievability of this target, he remains optimistic about future success due to increasing investment in plantation rehabilitation.

Nigerian cocoa producers face greater fluctuations in the global market compared to their counterparts in Ivory Coast and Ghana, where prices are regulated. Despite a decline from their previous record, cocoa futures in New York remain elevated at over $8,000 per tonne. Comrade Adeola Adegoke, president of the Cocoa Farmers Association of Nigeria, noted that individuals are increasingly entering cocoa production to benefit from these favorable prices.

As the world’s top cocoa provider, Ivory Coast produced over two million tonnes in 2023, followed by Ghana at 650,000 tonnes. Both countries faced challenges last year due to adverse weather and disease affecting crop yields, leading to a global supply shortage. Although Nigeria’s cocoa crop has not yet faced similar crises, concerns regarding environmental risks arise as production expands.

The Nigerian government is actively promoting the previously unregulated industry through initiatives like the National Cocoa Management Committee. However, the push for modernization has led to the rise of monocrop plantations that omit companion planting, which studies suggest could be detrimental to environmental sustainability.

Challenges remain for scaling Nigeria’s cocoa sector, particularly since small-scale farmers dominate production. Peter Okunde, a farmer from Ogun state, emphasized the dual needs of capital and land necessary for expanding his cocoa farm. Conversely, John Alamu from Johnvents highlighted that land should not be viewed as the primary issue. He called for a comprehensive support system including seedling provision, farmer training, and a stronger emphasis on sustainable agricultural practices to restore Nigeria’s leadership in cocoa production.

Nigeria’s ambition to become a key player in the cocoa industry is motivated by soaring global prices and challenges faced by leading producers. Despite significant interest and investment in cocoa production, hurdles such as environmental sustainability, reliance on small-scale farmers, and the need for comprehensive support systems remain. Achieving governmental targets and overcoming these obstacles will require strategic efforts and investment in sustainable practices.

Original Source: www.iosconews.com