Why price of coconut will continue to rise

THE Federal Government’s dream of increasing the country’s coconut production level from the current 224,186 metric tonnes ( MT) yearly to 500,000 MT by 2025 may not be feasible after all, considering the array of challenges facing the sector.

The Minister of Agriculture and Food Security, Alhaji Abubakar Kyari, who made the declaration last year during the 10th International Coconut Festival ( AGUNFEST) in Badagry, Lagos, said Nigeria ranked 19th in the world among coconut- producing countries, noting that increasing Nigeria’s production is capable of making a great economic impact on the country.

But with the year 2025 less than 12 months away, there appears no strategy in sight to hit the target, as the country still relies on importation from neighbouring countries to bridge the demand gap.

Investigations revealed that the huge gap between demand and supply of the produce, coupled with the closure of the border has resulted in the price hike of the produce.

According to market survey, a medium size coconut, which sells for between N200 and N250, now sells for between N550 and N600, while the small size, sold at the rate of N100 and N150, now sells for N450.

An officer at the Permaculture Forest Farm, Badagry, Adeosu Lawal, attributed scarcity of the produce and current price hike to increase in the prices of other commodities. “Therefore, people that are living on coconut too must increase the price; otherwise, they will not be able to meet up.

“When subsidy is removed and other prices go up, if you don’t increase the price of your products, you will definitely go to the market and you won’t be able to afford anything.”

The South Africa Nigeria Business Chamber’s study of the coconut commodity chain in Nigeria revealed that the major problem affecting coconut production and all other agricultural products is the import tariffs that have put fertiliser and other inputs out of reach of small scale farmers, thus, leading to low yield and hard manual labour.

A member of the Lagos State Coconut Sellers Association, Femi Okanlolu, attributed the development to the closure of border. “When we were importing coconut from Ghana, the price of coconut was cheap.”

A farmer from government- owned Coconut Farm in Okoafo, Badagry, Taiwo Sunday, said the high demand for the commodity necessitated the hike in price, forcing it to go beyond the reach of the masses.

“The demand in the international market is high. Coconut is used in the production of body cream and soaps. The price of coconut palm has increased from N500 to N2, 500. With the increased price of transportation and all other things, the price of coconut has to increase. We work with instructions; we are working with the price contained in the circular shared to us,” Sunday said.

Sunday, who expressed confidence that the country has the chance to meet the increasing market demands without depending on importation of coconut, said Nigeria must produce more to increase its market share and the best way to achieve this is to improve cultivation by assisting local farmers.

He also mentioned the need to have an organised supply chain and provision of adequate infrastructure to support farmers, adding that for the country to meet its increasing market demands there’s need for a sustainable source of the coconut palm.