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AGRIC BUSINESSCOVERNEWSLETTER

Revenue From Cocoa Export May Decline, Here’s Why

Cocoa: "Nigeria Needs Processing Zones, Agricultural Logistics" Adegoke

The Federal Government (FG) may lose revenue from agro-export, as farmers raised alarm over the low quality of cocoa beans.

Adeola Adegoke, the President of Cocoa Farmers Association of Nigeria (CFAN), stated that the Nigerian government should be worried about the low quality of cocoa beans.

According to him, the commodity’s low quality, it is likely to face international rejection, especially if the challenge is left unattended.

“We’ve raised the alarm on the low quality of our cocoa beans and the need for our nation to brace to change this narrative in order to prevent our cocoa from being rejected now and in the future or being sanctioned. And this is because it could lead to the blockage of other opportunities that could improve the livelihood of our cocoa farmers in Nigeria,” he stated.

Why this matters

Should Nigeria’s revenue from cocoa import decline, it would create more problems for the Nigerian government. This is because, amongst other reasons, the commodity is one of the most important non-oil export commodities in the country.

Between January and March 2021, the National Bureau of Statistics (NBS), in its report, has it that cocoa stands second on the list of top agro-export with an estimated value of N35.49 billion. BizWatch Nigeria understands this estimate includes good fermented Nigerian cocoa beans and superior quality raw cocoa beans.

With this, one can conclude that aside from crude oil, cocoa is one of the most significant sources of foreign exchange (forex) in Nigeria.

What you should know

Cocoa is a small perennial tree crop that primarily comes from the three tropical regions in the world; Southeast Asia, Latin America, and West Africa. Cote d’Ivoire is the single largest producer of cocoa beans, accounting for approximately 31% of the world’s supply.

About Author

Damilare Famuyiwa is a journalist and media consultant with over seven years experience. Trained at the Nigerian Institute of Journalism (NIJ), he has since been actively covering different beats, which include finance, showbiz, and music. You can reach him on [email protected]

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