Stakeholders meet over pathetic state of Nigeria’s cocoa industry
Stakeholders in the cocoa industry converged on Abuja from August 28 – 31 for the ‘1st International Cocoa Summit 2017’ to re-examine what the country did wrong with the once vibrant cocoa industry.
Organized by the Federal Ministry of Industry, Trade and Investment in collaboration with Cocoa Association of Nigeria (CAN), supported by the International Cocoa Organisation (ICCO), African Export-Import Bank (AFREXIMBANK) and governments of cocoa producing states, the summit looked at cocoa as ‘a strategic commodity for national economic development.’
Nigeria, which once occupied the top four position of global production (with 420,000 metric annually), lost that glory in the international cocoa economy while its West African neighbours, Ivory Coast and Ghana reap billions (over $13bn) from the industry.
Figures from the International Cocoa Organisation show that there have been significant decline in the Nigeria cocoa beans production in the last three years, but a better hope for 2017.
Although ICCO forecasts slight increase in production for the 2017 to be at 220,000, previous data shows that from 248,000 metric tonnes in 2012/2013 to 195,000 metric tonnes in 2013/2014 and a further 5% decline in 2015/2016 to 190,000 metric tonnes.
Something officials said the summit was in recognition of the fact that cocoa is a key important economy crop that must be revived.
The federal government now set a target to achieve 500,000 metric tonnes (MT) cocoa production and processing annually by Year 2021.
At the opening ceremony of the summit, President Muhammadu Buhari expressed dismay at the neglect of the export crop, which before now, was second only to oil.
“It is unfortunate that the sector has suffered neglect as a result of over reliance on crude oil, this has also unfortunately led to decline in the country’s annual production from 420,000 metric tonnes in the 60s to 192,000 metric tonnes in 2015, a situation that is no more acceptable to government.”
President Buhari stressed that “Our Industrialisation ambition is hinged on the Nigerian Industrial Revolution Plan (NIRP) launched by the previous government of President Goodluck Jonathan in 2014; it is now time to move that comprehensive document from the Economic Recovery and Growth Plan (ERGP) in view of current realities.”
Represented by the country’s Minister of Agriculture and Rural Development, Chief Audu Ogbeh, he said the federal government was working hard to improve the business environment for local and foreign investors as well as encouraging the development of domestic consumption.
“I wish to assure you that the implementation of our reforms of the Ease of Doing Business will be the backbone for the repositioning of the cocoa sub- sector in Nigeria.
“We are planning a re-launch of cocoa to draw national attention to its strategic importance but the big thing is to help processors at home and increase consumption.
“Everything is not about export, nowadays, the export market is choked and therefore, forcing prices down while farmers are losing money.
“We will help with land clearing, fertiliser improvement, especially the inclusion of boron to revive old cocoa plantation and encourage new ones,’’ he said.
Senate President Bukola Saraki, urge governors to encourage the youth to go into cocoa cultivation as the population of those into cocoa is aging.
Represented by Senator Abdullahi Yusuf (Taraba Central) promised cocoa farmers that the National Assembly would consider legislation intended at encouraging cocoa production in the country.
The Minister of Trade and Investment, Dr Okechukwu Enelamah and that of State for Industry, Trade and Investment, Aisha Abubakar hope the position adopted in the summit will chart a new course for growth in the industry adding that the theme of the summit, “Cocoa: a Strategic commodity for National Economic Development,” was apt.
The President, Cocoa Association of Nigeria (CAN), Mr Sayina Riman, however stressed that the five year cocoa strategic plan at the end of the conference opened a new chapter for the industry.
International stakeholders like Dr Jean-Marc Anga, the Executive Director, International Cocoa Organisation, said the organisation would assist the Nigeria in the implementation of its action plan on cocoa.
He advised that research and development should be a major driving force toward improving cocoa production in Nigeria.
“We will assist Nigeria to develop a plan on cocoa but emphasis should be on quality and value addition,’’ Anga said.
The many issues affecting Nigerian cocoa industry
Mr. Akin Olusuyi is the Chairman, Cocoa Processors Association of Nigerian and a cocoa farmer based in Ile Oluji, Ondo State outlined a number of reasons why cocoa production is declining in Nigeria.
The greatest challenge, he said was that the cocoa farms and the farmers are aging, stressing that government must structured the cocoa economy to make it attractive to young graduates and people to come in.
“The existing farms are very old, the trees in the farms are very old, the farmers that are cultivating them are very old, and so when you have old cultivating old, there is little you can get from it,” he said.
The cocoa expert reiterated that cocoa farming and processing have been severely affected by lack of structured framework within which the cocoa economy in Nigeria works leaving the farmers, processors at the mercy of foreign exporters.
Speaking on lack of infrastructure for production, he said absence of rural roads and extension services couple with long time neglect of the industry was killing cocoa production in the country.
“I am based in Ile Oloji, none of the farms in my environment is accessible. None of the rural roads leading to these farms are motorable,” he stated.
On price, the chairman noted that Nigerian farmer is the most favored in terms of price especially in West Africa stressing “that the factors affecting the price of cocoa in Nigeria is not even understood by anybody because the price of cocoa in Nigeria is more than what you get in the international market.”
Although the price is relative to location, a tonne sells between N1 million and N1.2 million in Ondo State, while in other places it goes between N950,000 and N980,000.
Dr. Victor Iyama, the current Chairman, Board of Trustee and former National President, Cocoa Association of Nigeria (CAN, maintained that government must systematically fund cocoa production by providing the funds that the young people need to go into cocoa production.
Iyama who is also the current National President of Federation of Agricultural Commodity Associations of Nigeria (FACAN) believes the young people are ready to go into farming if government provides venture finance, adding that cocoa is a lifetime investment that can last 70 to 80years.
Dr. Iyama, reiterates that cocoa can be grown in 29 states with potentials for 2 million metric tonnes.
What some states are doing to boost production
Oyo, Cross River, Ondo and Kogi states have been at the forefront of the struggle to revitalize the ailing cocoa industry by providing massive seedlings to farmers to raise plantations.
In Cross River, the Governor of the state, Prof. Ben Ayade, says it was constructing a N7 billion cocoa processing plant in Ikom area of the state to boost cocoa production.
Ayade who spoke through his Special Adviser on Cocoa Development, Mr Oscar Ofuka, said the move was also to add value to cocoa, which the state massively produced.
“We are already trying to make it a policy that school children in the state will be fed with cocoa related products. We have achieved so much on cocoa production, which before now was relegated to the background.
“We raise nursery to expand our cocoa farms and we established cocoa estate with about 5,000 hectares planted already. The state government has made it as a policy to open new cocoa farms across the state. Government has also come up with a policy that will encourage local consumption of about 70 per cent of the cocoa produced in the state,” Ayade said.
He said that the government was also supporting local cocoa farmers in the state to boost production, to enable them to overtake other states in cocoa production.
Cross River is the second largest producer of cocoa in the country and the state said it wants to be the first in the country.
CRIN current research in cocoa to boast cocoa
The Cocoa Research Institute of Nigeria (CRIN) is establishing Cocoa Seed Gardens in all the 14 cocoa-producing states in Nigeria.
These are: Ondo, Cross River, Osun, Edo, Oyo, Ogun, Ekiti, Kwara, Kogi, Akwa-Ibom, Delta, Abia, Taraba, and Adamawa states. This will assist in making CRIN’s extra-early cocoa variety available to all farmers.
The institute said since November 2010, it has released over eight hybrids, which have diverse genetic base, early bearing, high yielding with very low input, resistant to major pests and diseases of cocoa, highly adaptable to cocoa ecologies of Nigeria and very good cocoa quality traits.