Nigeria seeks to leverage skyrocketing cocoa prices to increase its market share and challenge leading producers. With a production goal of 500,000 tonnes, the government is encouraging investments and sustainable practices to enhance the industry. However, challenges such as small-scale farming limitations and environmental concerns about monoculture remain critical issues to address.
Nigeria is experiencing a significant increase in interest within the cocoa sector, driven by soaring global prices, which reached a record $12,000 per tonne in December. This trend aims to establish Nigeria as a viable competitor to leading cocoa producers, Ivory Coast and Ghana, whose production has been adversely affected by climate change and disease. Investors are now exploring opportunities in cocoa beans as the nation seeks to diversify its oil-reliant economy.
As of 2023, Nigeria is the seventh-largest cocoa bean producer globally, yielding over 280,000 tonnes according to the UN’s Food and Agriculture Organization. The government has ambitious plans to raise production targets to 500,000 tonnes during the 2024-2025 season, hoping to secure fourth place among cocoa-producing countries. However, experts like Patrick Adebola express skepticism regarding reaching this goal within the targeted timeframe, citing the need for infrastructure development and enhanced plantation management strategies.
Investments from local firms and international financiers, such as the British government’s development finance arm, which allocated $40.5 million to the Nigerian agribusiness company, Johnvents, indicate the growing confidence in Nigeria’s cocoa potential. Nonetheless, small-scale farmers face significant barriers such as limited capital and land access, which may hinder large-scale expansion efforts even as interest surges.
Contrastingly, while Nigeria’s cocoa has largely been shielded from severe climatic impacts thus far, there are environmental risks associated with monocrop farming, which the government is promoting. Recent studies suggest that sustainable practices, including intercropping cocoa with shade trees, could foster biodiversity and enhance environmental outcomes, challenging the prioritization of extensive cocoa plantations over diverse agricultural practices.
Industry experts, including John Alamu from Johnvents, argue that a comprehensive approach involving better farming practices, provision of necessary resources, and a focus on sustainability will be pivotal in restoring Nigeria’s cocoa industry to a leading position. Many stakeholders are optimistic that enhancing cocoa production presents a valuable opportunity for both economic diversification and agricultural development in Nigeria.
In summary, Nigeria is positioned to capitalize on surging cocoa prices, presenting an opportunity to become a significant player in the global market. While the government’s production targets strive for increased output, challenges remain, especially for small-scale farmers. Increased investment and sustainable farming practices are essential for Nigeria to elevate its cocoa industry and potentially reclaim a prominent position among the world’s leading cocoa producers.
Original Source: www.hindustantimes.com
