Nigeria is aiming to enhance its position in the cocoa market amid soaring prices. With hopes to reach a production target of 500,000 tonnes by 2024-2025, the government is focusing on regulatory reforms and investment. However, challenges such as small-scale farming and environmental concerns remain prevalent.
Nigeria is increasingly looking to capitalize on soaring cocoa prices, aiming to become a more significant player in the global cocoa market. Amidst challenges faced by top producers Ivory Coast and Ghana, which are suffering from climate change and disease impacts, Nigeria strives to diversify its oil-dependent economy. Record cocoa prices reached $12,000 per tonne in December, prompting renewed interest from investors in cocoa production.
According to data from the UN’s Food and Agriculture Organization, Nigeria is currently the world’s seventh-largest cocoa producer with over 280,000 tonnes produced in 2023. The government has set an ambitious goal of reaching 500,000 tonnes by the 2024-2025 season, positioning Nigeria within the top four producers globally. While skepticism remains regarding the target’s feasibility this season, experts believe it can be achieved in subsequent years due to growing interest in rehabilitating older plantations and establishing new ones.
Nigerian cocoa growers experience unique market exposure, unlike their counterparts in regulated markets like Ivory Coast and Ghana. Although cocoa futures in New York have dropped from December’s peak, prices remain elevated at over $8,000 per tonne. Farmers at various levels are responding to these price dynamics, seeking to engage in cocoa production to benefit from current market conditions.
Ivory Coast remains the leading cocoa producer at over two million tonnes in 2023, followed by Ghana with 650,000 tonnes. Both countries encountered challenging harvests due to adverse weather conditions and diseases, resulting in a global supply shortage that contributed to the surge in prices. Nigeria’s cocoa sector has been less affected by climate change thus far, although there are environmental concerns regarding potential expansion efforts.
To support the growth of the cocoa industry, the Nigerian government formed the National Cocoa Management Committee in 2022 to regulate the sector and assist farmers. However, current modernization strategies have led to the rise of monocrop plantations, which may not be as sustainable as agricultural practices involving companion plants or trees.
Furthermore, scaling up cocoa production poses challenges, particularly since small-scale farmers cultivate a significant portion of Nigeria’s cocoa. Many lack the necessary capital and land to expand their operations. Despite these challenges, experts emphasize that improving support systems for farmers is essential. This support may include provision of seedlings, training in agronomic practices, and a commitment to sustainable agriculture, which are critical for reinvigorating Nigeria’s cocoa leadership position.
In conclusion, Nigeria seeks to leverage the current surge in cocoa prices to enhance its presence in the global market, competing with top producers. While setting ambitious production targets and promoting regulatory frameworks, the country must address challenges such as small-scale farming limitations and environmental sustainability. Long-term success will depend on government initiatives that support farmers and encourage sustainable practices within the cocoa industry.
Original Source: www.hindustantimes.com
