Cocoa: Uncertainty grips exporters, farmers over $4bn export earnings

The desire by Cocoa farmers  for substantial earnings  this year may suffer a setback if the federal government does not step up its game in assisting farmers to acquire newer varieties with shorter gestation period.

Recall that earlier in the year, the federal government initiated moves  to ensure that Cocoa farmers and exporters  earn $4 billion from 500,000 metric tonnes of cocoa in the 2025 season as a way of earning more foreign exchange.

This expectation is fast turning into a mirage in view of growing  complaints and fear to access new yields.

The  Cocoa Farmers Association of Nigeria (CFAN) has been complaining of the difficulties and challenges they face in a bid to  access the new cocoa varieties, which,  according to them, bear fruit within 18 months.

cocoa is  mainly a major ingredient for cocoa paste, chocolate, cocoa butter and cocoa liquor, which are commonly consumed across the  world. Business Hallmark’s findings revealed that the demand for cocoa has been on the increase since last year when the prize quadrupled.

The National President Cocoa Farmers Association of Nigeria ( CFAN),  Adegoke Adeola, recently said that the demand for the variety of the new cocoa seedlings is very high when compared to supply.

Recall that early in the year, in a bid to shore up productivity in cocoa farming, the Tinubu administration  had  targeted  production  of 500,000 tonnes for the 2024-2025 season, an expectation that was widely hailed as the dawn of a new lease of life for farmers considering soaring international price of the produce,

if rigorously pursued, however, evidence on the ground points to the contrary.  This projection would have placed the country in the  fourth position  behind Ivory Coast, Ghana and Indonesia.

Uncertainty of Inputs

In a recent interview,  CFAN president, Mr. Adeola, ruefully noted that many cocoa farmers were still recycling the old varieties of cocoa, which has  five to seven years gestation period,  this reality has dampened the expectation of farmers  stoking the embers of the current frustration, according to Adeola.

“There is a new cocoa variety that has 18 months gestation period to fruit and this is a game changer in the sector.”

Adeola  called on the federal government to adequately fund research institutes to enable them create germplasm, which is an  essential element for the availability of new cocoa varieties, noting that there were few nurseries in the country with the capacity to supply the new cocoa varieties to farmers in the country, thereby creating a demand gap.

He stated that many Nigerian youths,  who hitherto had shunned farming were now flocking into cocoa farming as a result of increase in price of the commodity in the international market since 2024.

“Agronomy practice is gaining momentum as well as pesticide application. If we are able to have much availability of new cocoa seedlings that have 18 months duration, then it will be a big blessing to Nigeria, and the country will not be struggling to increase from 200 metric tonnes to 500 metric tonnes.”

Boom for Farmers

Jimoh Quadri, a cocoa farmer based in Ijebu Ilese in Ogun state, told Business Hallmark that some years back “we in the industry merely got by because of low price; besides, the middle men used to rip us off, but for us cocoa farming is what we are used to from our childhood, having inherited it from our fathers we just kept faith with it. “That was the state of affairs for  many years. But last year, something cheery happened: the price of cocoa soared from N1200 for a kilogram to  N18,500, but this is for the new varieties. The old one we have also witnessed a price increase up to N13500. Federal government, earlier in the year promised to make available the new varieties, but unfortunately, this has not happened as the demand exceeds supply currently. That’s the situation we are in now.”

Another cocoa farmer, Biodun Oyefeso, said “I made good money last year with the new variety, which has an 18-month gestation period, and I can tell you this year is not going to be bad. We are appealing to the government to grant us access to the new varieties.

Echoing this view, the Director of Cocoa Farmers Alliance of Africa (CFAA), United Kingdom branch, Mr Dapo Ladegbaye, noted that cocoa farmers in Nigeria until recently were disillusioned and frustrated because of the low price of the commodity in the international market, saying the situation has changed now, I development that is driving young Nigerians to embrace cocoa business.

Ladegbaye emphasized that the government’s drive to diversify the economy from oil and gas to no-noil,  is  a right step in the right direction, adding that there is now hope for the country’s cocoa farmers.

He said: “This is the first time the youth are interested in cocoa farming and see it as a future for Africa and the world. We need money to take advantage of the booming cocoa sector. The challenge is funding because cocoa is capital-intensive.”

He was optimistic that Nigeria would soon become a cocoa destination in the world with the support of the Federal Government to the industry.

Also, an official of Cocoa Research Institute of Nigeria (CRIN), Dr. Yemisi Lawal, noted that Nigerians have changed their perspective on cocoa farming in view of recent soaring price of the produce, saying that young Nigerians are beginning to see cocoa as a business rather than mere farming practice,  adding that the price boom of 2024, which saw cocoa price rise from N1,200 to as high as N18,500 per kilogramme, had made many Nigerians develop more interest in cocoa cultivation.

She said that the federal government had been funding research projects in the institute while the institute was working assiduously to make new cocoa varieties available to cocoa farmers

Potential Trade

It would be recalled that data from the International Trade Centre on goods had shown that the Netherlands imported $807.18 million worth of cocoa and cocoa preparations from Nigeria in 2024, adding that Germany purchased $400 million worth of the beans.

It was believed that the surge in demand from the confectionery, food, and beverages industries has oiled the growth of the cocoa products industry.

National Bureau of Statistics (NBS) data stated that the country exported N1.54 trillion in 2024 from N171 billion in the corresponding period of 2023.

On a quarter-on-quarter basis, the country’s cocoa export jumped to  92 per cent from N624.71 billion in Q3 of 2024. Also, the NBS noted earnings rose by 73 per cent on a quarter-on-quarter basis from N890.72 billion in Q3 of 2024, while superior quality cocoa beans worth N477.95 billion and N108.09 billion were shipped to the Netherlands and Malaysia, respectively.

Also, standard quality cocoa beans worth N110.84 billion and N48.96 billion were exported to the Netherlands and Belgium, respectively.

Meanwhile, the federal government has inaugurated a Technical Implementation Committee for the 10-year National Cocoa Plan in Abuja.

According to the Minister of Trade and Investment, Dr. Jumoke Oduwole, the plan aligns with the Renewed Hope Agenda, which seeks to reduce unemployment and achieve the broader vision of a $1 trillion economy by 2030.

Also, Head of the Commodities and Export Department of the Ministry of Trade and Investment, Hajiya Hajara Usman, highlighted how the ministry plans to achieve the over $300 billion investment in the Cocoa Plan by 2032.

She said: “For the 10-Year National Cocoa Plan, it is expected that the Federal Government will contribute 27 per cent, the cocoa-producing states will contribute 13 per cent, local governments will provide five per cent, and the private sector will contribute 30 per cent.