Nigeria Aims to Enhance Cocoa Production Amid Soaring Prices

Nigeria is capitalizing on soaring cocoa prices to enhance its production capabilities and aims to become a significant player in the global market, aspiring to reach 500,000 tonnes by 2024-2025. Despite challenges such as small-scale farming and market volatility, local investments and government support are fostering optimism in the industry.

Nigeria is aiming to enhance its cocoa production amid soaring global prices, which reached an unprecedented $12,000 per tonne in December. This surge is inspiring local investors to reconsider cocoa as a viable alternative to the nation’s oil-dependent economy. Cocoa Research Institute director Patrick Adebola noted that farmers are benefiting significantly from these price changes, and numerous local firms are looking to expand their cocoa operations this year. Additionally, substantial investments, such as the $40.5 million from the British government’s development finance arm into Johnvents, signify increased confidence in Nigeria’s cocoa sector.

Currently, Nigeria ranks as the seventh largest cocoa producer, generating over 280,000 tonnes in 2023, as reported by the UN’s Food and Agriculture Organization. The government is setting ambitious targets, aiming to achieve 500,000 tonnes in the 2024-2025 season, potentially elevating Nigeria to fourth position globally. While Adebola expresses skepticism regarding the immediate achievement of this target, he believes that revitalizing older plantations and initiating new ones could facilitate long-term growth in production.

Nigeria’s cocoa farmers are more vulnerable to market fluctuations compared to their Ivorian and Ghanaian counterparts, who benefit from regulated pricing. Although cocoa futures in New York have moderated from December’s peak, prices remain elevated above $8,000 per tonne, significantly higher than historical averages. According to Comrade Adeola Adegoke, president of the Cocoa Farmers Association, many individuals are now entering cocoa production to capitalize on current market conditions.

Despite Nigeria’s potential, its cocoa predominantly comes from small-scale farmers, presenting challenges in scaling up production. Peter Okunde, a farmer, highlighted land and financial limitations as significant barriers to expansion. However, John Alamu, managing director of Johnvents, contends that land scarcity is not the issue; rather, a more comprehensive approach, including the provision of seedlings and sustainable agricultural practices, is essential to revitalize Nigeria’s cocoa sector and regain its leadership role within the industry.

Increasing cocoa production in Nigeria presents a significant opportunity for economic diversification away from oil dependence. With high global prices and government initiatives aimed at supporting farmers, there is potential for Nigeria to rise in the global cocoa rankings. However, challenges such as small-scale farming, land accessibility, and sustainable practices must be addressed to ensure long-term growth and environmental responsibility in the cocoa sector.

Original Source: business.inquirer.net