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Nigeria – Cocoa Crop in Decline

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Many claim that the once central industry is now the most neglected, while others eye the opportunities.

The decline in the cultivation of the crop is reportedly to due with long growing periods and impatience among the younger generation, according to President of the Federation of Agricultural Commodity Associations of Nigeria (FACAN), Victor Iyama, who was speaking at the 2nd Daily Trust Agricultural Conference in Abuja on December 15th.

“It’s not four to six months, it is up to five years minimum but the beauty is that it can last for 70 years,” he said, adding that chocolate production generated large sums of money; out of a $120bn cocoa economy only around $15bn goes to products other than chocolate.

Iyama noted that cocoa was the second largest foreign exchange earner, next only to oil, adding that 29 states in the country can produce the crop, reported the Daily Trust.

According to Lagos-based the Guardian, a number of stakeholders in the Nigerian industry have said that it has remained the most neglected sector of the economy despite at the same time being one of the most viable industries in the world. Setbacks include the high cost of borrowing, deregulation and inconsistent government policy.

CEO of FTN Cocoa Processors Plc, Akin Laoye, explained that the deregulated environment is impeding the growth of the processing sector, adding that the cocoa sector needs some degree of regulation.

“To deepen Nigeria’s industrial base, it is counter productive to allow agricultural raw materials to be exported without adding value. Value addition will grow the industrial sector, generate employment, and enhance value of the revenue from export.” Laoye also urged government to find a lasting solution to tackle the ongoing recession, reported the Guardian.

The Minister for Agriculture, Chief Audu Ogbeh, on December 15th said that Nigeria used to be a leading cocoa exported but has since fallen to seventh among exporting countries exporting 27.5m tonnes annually, in comparison to first place Cote D’Ivoire with an annual export volume of 1.75bn tonnes, reported This Day.

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CC 2015.

On December 7th AgWeb reported that the Nigerian government was preparing to capitalise the state owned Bank of Agriculture with Naira (N) 1trn (US$3.2bn) to boost the agricultural sector. “We are looking at 25 million farmers” as stakeholders or depositors, Minister Ogbeh said.

From November 8-10th a regional symposium focusing on the next generation of cocoa research for West and Central Africa was held at the International Institute of Tropical Agriculture (IITA) in Ibadan, Oyo State.

The symposium drew leaders from across the southwestern part of the country, the predominant area for the cultivation of cocoa, such as Ife, Oyo, Osum, Ogun, Cross River and Ondo states. The symposium drew leaders alongside academics and industry representatives to discuss research priorities and alliances to take advantage of the potential of cocoa.

According to Executive Director of the Cocoa Research Institute of Nigeria (CRIN), O. Olubamiwa, the Regional Cocoa Symposium is the first of its kind in Africa. “It is happening in West Africa—the hub of global cocoa production. It will highlight the diverse roles of cocoa in improving farmers’ livelihood. It is also a forum for stakeholders to synthesise ideas on sustainable cocoa production,” reported the Guardian.

However, other reports have suggested that cocoa cultivation in Ondo state appears to be waning, despite having what could mildly be described as comparative advantage. Farmers in the state accused the state government of failing to implement practical policies and programmes.

One of the cocoa farmers in Akure, the state capital, Olorunfemi Ashagi asserted that one major problem facing the growth of cocoa is finance. Another farmer expressed fear that cocoa farming in the state may soon go into extinction, as many of the young men engaged in it are increasingly to alternative livelihood opportunities, reported Leadership.

Find out more in the Africa Research Bulletin:

COCOA: Côte d’Ivoire
Economic, Financial & Technical Series
Vol. 53, Issue. 7, Pp. 21366A–21366C

NIGERIA: Recession and ‘Record’ Low Foreign Investment
Economic, Financial & Technical Series
Vol. 53, Issue. 8, Pp.21384C–21386C

COCOA: Ghana
Economic, Financial & Technical Series
Vol. 53, Issue. 2, Pp. 21184A–21184B

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