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Revive cocoa industry – US advises FG

By on December 11, 2014

Amid the dwindling oil revenue caused by global fall in prices of crude oil, the United States Government has advised the Federal Government to prioritise the development of the cocoa industry.

The US Diplomatic Mission to Nigeria said it was unfortunate that the country, which thrived on extensive cocoa production and export, had failed to key into the rising global demand for the agricultural commodity.

The US Consul General, Mr. Jefferey Hawkins, explained that although there was an ‘insatiable’ worldwide appetite for chocolate, a by-product of Cocoa, Nigeria was not positioning itself to take advantage of the opportunity.

Hawkins spoke in Lagos during the ‘Nigeria Cocoa Summit’ organised by the US Agency for International Development in conjunction with the Sustainable Trade Initiative and a global integrated supply chain firm, Olam International.

According to the American diplomat, with improved production of cocoa, Nigeria could target emerging economies such as China and India and other developed nations whose citizens have developed a taste for chocolate.

He said, “When I travel through the regions of Nigeria, I am struck by the fact that cocoa is still raised by hand, not by machine, and remains a very labour-intensive commodity to produce. Cocoa production is still very much a family enterprise, from planting to carrying the bags of cocoa beans to the buyers, who may be far away from their farms.

“Despite the physical labour involved, farmers are realising very limited incomes from their efforts. Cocoa production here in Nigeria is diminishing. Cocoa farmers and their trees are aging, and farmers are getting some of the lowest yields on the continent.

“Farmers are tending small plots of land, often less than two hectares and are not making the investments needed to maintain quality or productivity. With high interest rates, and the cost of inputs exceeding farmers’ ability to pay, the sector is not seen as a viable way to make a living. Sons and daughters of cocoa farmers are heading for the cities for other opportunities.”

Hawkins explained that for Nigeria to take advantage of rising global demand for quality cocoa, which he said had contributed to prices of the agricultural commodity rising by 25 per cent in the past year, something urgent must be done.

 

[Punch]