Nigeria aims to enhance its cocoa production amidst soaring global prices, targeting 500,000 tonnes by 2024-2025 while competing with leading nations Ivory Coast and Ghana. Investments are increasing in the sector, although challenges such as smallholder farming and environmental sustainability remain significant.
In response to soaring cocoa prices, Nigeria is aspiring to enhance its presence in the global cocoa market, aiming to rival top producers like Ivory Coast and Ghana. These countries are experiencing crop challenges due to climate change and diseases. Following a surge in cocoa prices to $12,000 per tonne in December, investors are reconsidering the potential of cocoa in Nigeria’s economy, which has overly relied on oil.
On the domestic front, over a dozen local firms are expressing interest in investing in cocoa production, spurred by increasing global demand. The British government’s development finance arm has also invested approximately $40.5 million in Nigerian agribusiness, exemplified by their funding to the company Johnvents. Presently, Nigeria ranks as the world’s seventh-largest cocoa producer, generating over 280,000 tonnes in 2023, with a government goal to reach 500,000 tonnes by 2024-2025.
Experts like Patrick Adebola from the Cocoa Research Institute believe that while reaching the target in the short term may be challenging, the growing interest in rehabilitating old plantations signifies potential future growth. Nigerian cocoa farmers face significant market volatility, as their crop prices are not as regulated as those in Ivory Coast and Ghana, leading to greater exposure to market dynamics.
Despite a recent decline in cocoa futures, prices remain elevated above $8,000 per tonne, a substantial increase from the usual $2,000 to $3,000 range. Local farmers, as expressed by Comrade Adeola Adegoke, are increasingly engaging in cocoa production at all levels to capitalize on favorable prices.
While Nigeria is expanding its cocoa production, it must tread carefully to avoid environmental pitfalls. The cultivation strategy promoted by the government often involves “full-sun” monocrop plantations, which neglect biodiversity. Research highlights the sustainability concerns associated with monocropping compared to mixed farming practices that integrate shade trees.
The scalability of the cocoa sector faces hurdles, as smallholder farmers dominate production. Farmers like Peter Okunde cite a lack of capital and land as significant barriers to expansion. However, industry experts, including John Alamu of Johnvents, argue that expanding land area alone is not the solution; rather, a holistic approach encompassing support through seedlings, training, and a focus on sustainable practices is necessary to reclaim Nigeria’s leadership in cocoa farming.
Nigeria is positioning itself to capitalize on the rising cocoa prices and expand its cocoa production capabilities. The country aims to achieve greater prominence in the global market by increasing output and encouraging sustainable agriculture. However, challenges such as environmental concerns and the need for financial and infrastructural support for small-scale farmers must be addressed to realize these ambitions. The commitment to revitalizing the cocoa sector suggests a promising future for Nigeria in this vital agricultural industry.
Original Source: business.inquirer.net
