Korede Abdullah in Lagos
Nigeria’s cocoa production is poised for a significant boost, with projections indicating a 10% increase in 2024, driven by historically high cocoa prices in the international market.
According to the AFEX 2024 wet season report, the elevated prices have incentivized farmers to produce more, while cocoa seedling projects initiated in previous years are now yielding fruit.
The report attributes the growth to increased international demand and supply shortages in major producing countries, particularly Ghana and Ivory Coast.
Favorable weather conditions in Nigeria’s southwestern region, the primary cocoa-producing area, have also contributed to the projected increase. The estimated yield for 2024 is approximately 320,000 metric tons.
The surge in global cocoa prices has been dramatic, with an 80% year-to-date increase and an additional 10% rise since October.
Adverse climate conditions in leading producer Ivory Coast have disrupted harvests, driving prices higher. The international market price of cocoa has skyrocketed by 130% this year, reaching a peak of $9,900 per tonne.
Nigeria has benefited significantly from the price surge, with cocoa earnings soaring 279% in the first quarter of 2024.
Data from the National Bureau of Statistics shows cocoa exports valued at N408.66 billion in the first three months, up from N107.59 billion in the same period in 2023.
The majority of Nigeria’s cocoa farmers are smallholders, with 76% cultivating less than 2 hectares, while only 3% manage more than 5 hectares.
Most farmers fall within the 36-45 age range. The report highlights the potential for increased production, given the favorable market conditions.
As global demand continues to drive cocoa prices higher, Nigeria’s cocoa sector is well-positioned to capitalize on the trend.
With projections indicating potential further price increases, the country’s cocoa earnings are likely to continue growing, providing a welcome boost to the national economy.
