The Nation Newspaper

Tag: COCOA

  • APC urges Mimiko’s govt to account for cocoa project

    APC urges Mimiko’s govt to account for cocoa project

    Ondo State All Progressives Congress (APC) has asked Governor Olusegun Mimiko administration to account for the money spent on its cocoa revolution programme into which over N2 billion was allegedly committed.

    The party claimed that N300 million was released by the Federal Government over three years ago in aid of the programme.

    The party, in a statement by its Director of Media and Publicity, Steve Otaloro,  noted that since the government has been in the saddle for almost eight years now, the mandate given to him by the citizenry authorised him to administer the state in a responsible and God-fearing manner as he would be held accountable someday.

    The APC contended that as the administration has less than six months left, the moment of accountability has come, beginning with the agricultural sector.

    The statement said: “We hereby challenge the governor to tell the people of Ondo State when the Cocoa Revolution programme will now begin to yield result, at least to give a measure of succour to alleviate the current economic hardship in the state.

    “There is need for the people to know when the cocoa trees will begin to bear fruits and when the much advertised Ondo State chocolate, the byproduct expected from the Cocoa Revolution programme that was massively launched with great funfair some three years ago will be on the shelves?

    “We hope the programme has not been a deceit that promotes the concept of the more you look, the less you see. One would expect the much-talked about Cocoa Revolution Programme to spread across all the 18 local governments in the state by now and not a ‘one spot, one man, one family, one town show’, an act of deception.

    “If the people being deceived don’t know, the deceiver himself knows that he is deceiving the people. The good thing, however, is that you can only fool all the people some of the time, as you can never fool all the people all the time.

    “As we approach the end of the tenure of Dr. Mimiko, let us remind him that November beckons, the day of reckoning is finally here, because he will account for all the alleged fictitious programmes and projects that were embarked upon, but not executed by his government”.

  • Aregbesola revamps Osun cocoa industry

    Aregbesola revamps Osun cocoa industry

    This Cocoa Products Industry, Ede has a big story surrounding it. I therefore owe great gratitude to many people in government and outside it.

    “The then military government was very ardent to break a monopoly of bad fortunes for Ede, by actively supporting the quest to site the industry here. It is my earnest prayer, that everyone connected with the operation of it in whatever category, would find joy and happiness in all their undertakings”.

    Those were the messages of hope delivered at the inauguration of the multi-million naira Cocoa Product Industry, Ede on October 17, 1982 by the late Oba Tijani Oladokun Oyewusi, Agbonran II, Timi of Ede. It was during the regime of late Chief Bola Ige as governor of the old Oyo State.

    From the onset, one squabble or the other reared its ugly head. The first expatriate Managing Director of the company, Mr. K. W. Sheldon, tried his best to put it on sound footing, but he lost out in a dirty board-room politics in a dramatic manner. The government, owner of the company, thereafter felt concerned about happenings in the company, and decided in 1990 to lease it out. This brought about a ‘marriage of strange bed partners’. And the resultant effect were rounds of muscle flexing. The two principal leases of the factory at the time, that is  Worldwide Industrial Ventures Limited and Dalami (Nig.) Limited, got involved in allegations and counter-allegations, which resulted in a fierce legal battle, that saw two legal luminaries – the late Chief Fredrick Rotimi Alade Williams (Timi the Law, SAN) and Aare Afe Babalola (SAN) slugging it out at an Osogbo High Court.

    This went on for a period, before sanity prevailed, as the administration of Senator Isiaka Adeleke, the first executive governor of Osun State, took the bull by the horns, by giving the final nod to Worldwide Industrial Ventures Limited, to effectively run the affairs of the company. Dalami (Nig.) Limited again went to court to contest its termination and this went on for years, before it was resolved by Prince Olagunsoye Oyinlola’s government.

    At the time Worldwide Ventures Limited took over, production capacity level was at five per cent. But within a short period, it raised the production capacity to 60 per cent by injecting substantial funds into importation of spare-parts as well as locally sourced ones from the Nigeria Machine Tools Limited, Osogbo and Nigeria Sugar Company Foundries, Bacita. The FFA contents of cocoa, cake and butter, under Worldwide Ventures Limited hovered between 1.40 and 1.55 as against 2.24 before it took over. Globally acceptable FFA content for cocoa butter is 1.50.

    Most unfortunately, the unexpected again happened in 1995, when the leasehold agreement of Worldwide Ventures Limited with Osun State government, was crudely, illegally and arrogantly terminated by some overzealous officials of the Ministry of Commerce and Industry, acting on the instruction of a commissioner, who had his own ulterior motive of bringing in his friend to take over the leasehold of the company. Worldwide Ventures Limited was “thrown” out of Cocoa Product Industry premises in a jungle manner. It was like scaring away foreign investors. What followed could be better imagined than described.

    There and then, began the unending and protracted problem of the industry for a long time. Osun State government’s only industry, which Infact, is a goldmine if properly managed, is the Cocoa Product Industry, Ede. It is a veritable source of foreign exchange earnings for the state. It is capable of generating the much needed internal revenue for the state at this crucial moment of its socio-economic development. Moreso, with the need to tap into all natural resources, that abound in the state.

    Much as I am not holding brief for anybody, it is only fair to let the Chinese investors now in control, to operate without let or hindrance. Neither should any encumbrances placed on their way. There should be no bad blood, as regards who brought them into the scene. What we need in Osun State is accelerated industrial development. The present leasee is determined to put the company on the right footing. The factory is now a beautiful sight to behold.

    The Cocoa Product Industry erstwhile managers and workers, who have been on forced holiday for more than eleven years, are men of proven integrity, who should be given the right of a recall if they so wish and take the company to greater heights. Cocoa Product industry, Ede, is a company of yesterday, today and tomorrow for the people of Osun State. It is posterity-bound and prosperity-inclined.

    The administration of Governor Rauf Adesoji Aregbesola, has now taken the bull by the horns in giving a new lease of life to the hitherto moribund industry. Governor Aregbesola in his wisdom was able to put in place, a dynamic Board of Directors, under the able leadership of a leading light in the entrepreneurial world, in person of Sir Adewale Adeeyo (OON).

    This wonderful leader of men and material, on serious scrutiny of what was on the ground, shifting and weighing, hit upon a world-class investor from China, by name Runners (Nig.) Ltd, who are specialists in Cocoa Industry Management back in their country.

    Sir Adewale Adeeyo-led board, in cooperation with officials of the Osun State Ministry of Commerce and Industry, were able to identify the core problems of Osun Cocoa Products industry, major among which, was that over the years of its abandonment, some unscrupulous people have vandalised very  important cables, electrical materials among others.This in effect, had affected the industry badly. Governor Aregbesola was ready to give executive approval to the urgent needs of the company, whenever they were made. The governor trusted absolutely in Sir Adewale Adeeyo role to re-invigorate the industry.

    The new investor, also came up with master plans for the resuscitation of the factory. They threw themselves seriously into revamping its operation. Brand new and state-of-the art equipment were brought in to replace the obsolete ones put in place since 1982, which in anyway are not in tandem with modern day operation of such a gigantic factory, adjudged the biggest in sub-Saharan Africa.

    Sir Adeeyo did not leave anything to chance. He visited China one or two times to confirm the efficiency of the new investor as far as their activities in China were concerned.

    He was able to ascertain and ensure that the new investors would not jettison the continuous and permanent operation of Osun Cocoa Products Industry. Kudos to you, Sir Adeeyo for living up to expectation.

    It is to the glory of God, that the confidence reposed in Runners (Nig.) Limited – the Chinese new investor was not misplaced. The dynamic company, has made us proud in Osun with its multi-million naira turn-around rejuvenation and total-over hauling of the industry. What we now have in place is a factory that will stand the test of the time and ensure, that the sweet aroma from the Osun Cocoa Products Industry, Ede endures forever.

    A sparkling environment and committed workers are already in place, roaring to go into action. This new development will certainly improve the socio-economic life of Osun in general and Ede, its catchment area in particular. We hope that additional production lines for beverages, chocolate etc. will be put in place by RUNNERS (NIG.) LTD. Bravo to Ogbeni Rauf Aregbesola, Sir Adeeyo and other stakeholders, for not allowing the dreams of the industry founding fathers to die. Posterity will judge you kindly. All hands should be on deck, to make Osun Cocoa Products Industry, a lasting legacy and a pride of us all, so that generations coming behind, will say of us living, that we mastered our moment.

    To cocoa farmers all over Nigeria, there is a ready market waiting for your produce at Osun Cocoa Products Industry, Ede. Governor Aregbesola should trudge on and bring more industries to Osun, as we have industrial sites for kaoline, bauxite, gold and other mineral resources across the state, waiting for exploitation and production for local consumption and importation, to boost the state internally generated revenue. The assistance of the World Bank in this regard should be sought. Such new investors should also be given tax holiday.

     

    • Lawal wrote from Ede, Osun State.
  • USAID trains service providers on cocoa yields

    USAID trains service providers on cocoa yields

    The United States Agency for International Development USAID/Nigeria is training major service providers in key cocoa producing states on vegetative propagation to address the dearth of planting materials.

    The industry is faced with low productivity at less than 350 tonnes/hectare and needs cocoa seedlings to cultivate much-needed new cocoa plantations.

    According to experts, investments in new plantation are required to replace and expand existing cocoa estates, most which were cultivated in the pre-independence era.

    The Lead Facilitator, Dr Daniel Adewale of the Department of Crop Science and Horticulture, Federal University of Oye–Ekiti, Ekiti State, noted: “Nigeria is no longer getting full economic benefits from growing cocoa because most cocoa fields are old and small as well as the poor genetic qualities of the planting materials used.”

    To this end, he noted that the cultivation of cocoa is no longer a profitable crop for many farmers and as a result of this, the nation’s quantity and quality of cocoa is declining.

    Adewale, who is a former scientist with the Cocoa Research Institute of Nigeria (CRIN), noted that Nigeria produces less than 500kg of dry bean per hectare.

    “This very low level of cocoa production has made it necessary to change protocol of production,” he argued.

    He continued: “Vegetative propagation is the best way to ensure increased production of high quality cocoa pods or beans instead of seedling cultivation because it enables multiplicity and commercialisation of high-yielding strains.”

    The crop scientist further explained that vegetative propagation makes it possible to multiply desired cocoa varieties thereby ensuring “quick replication of highly productive planting materials, production of uniform trees with shortened gestation period and cocoa plants are protected against diseases.”

    Consultant to the USAID/Nigeria NEXTT project, Mr Remi Osijo, identified the massive investment opportunities in the cocoa and the possible of further growth if young farmers are supported to expand their farms from less than one hectare to about five hectares.

    “There was an urgent need to encourage investments in commercial cultivation of nuclear cocoa estates not just for increased productivity but because the scale of the operations and services that will be rendered. This will ultimately address quality issues of Nigeria’s cocoa beans as the fermentation, drying, ware housing and branding will be done appropriately and these services will certainly be extended to the atomised/local farmers around the estate.

    “Just imagine the scale and number of jobs that will be created from this venture with Nigeria earning more revenue as premium price will certainly be paid for such standardised cocoa beans all over the world,” Osijo said.

    A Senior Researcher at the International Institute of Tropical Agriculture (IITA), Ibadan, Dr Ranjana Bhattacharjee, stressed the  need for Nigeria to quickly bridge the gap in its cocoa production.

    He said: “Globally, the chocolate and cocoa industry are in crisis due to low productivity which is failing to meet a growing demand that is increasing by two per cent annually,” hence the need for Nigeria to urgently seize this opportunity growing global demand by increasing its falling cocoa production.

  • Ooni: how cocoa can restore our fortune

    Ooni: how cocoa can restore our fortune

    •’Commodity’s price rose by 100 per cent’

    The Ooni of Ife, Oba Adeyeye Ogunwusi, Ojaja II, has said cocoa and other agricultural produce can take Nigeria out of the woods.

    He spoke with State House correspondents after meeting with President Muhammadu Buhari at the Presidential Villa in Abuja.

    The Ooni said: “I am working with the minister of Agriculture. We have assembled over 200,000 youths within 30 days. We are encouraging them to go back to the farm.

    “Something happened in Nigeria that we did not notice. Last October, crude oil price started going down astronomically but cocoa price went up over 100 per cent and nobody noticed it.

    “Nigeria, in the early 1930s and 1940s, was the largest exporter of cocoa in the world and the farmlands are still there.

    ‘’So what we have done now is another positive indicator for the nation’s economy.

    “We have assembled youths and we are giving them five acres per youth so that they will go back to the farm.

    “The Federal Government is supporting us. So it is going to be a model to be replicated in all parts of the country.”

    He advised the youth not to look for fast ways of making money, but to go back to the basic.

    The monarch said his ascension to the throne was divine.

    He said: “I have a clear strategy: if you don’t want to accept me, I will accept you. It is important and I will be persistent about it because it is a divine calling. It is not by my power nor by my might. It is a calling from the King of Kings, who appointed me to this throne.

    “So, I will be persistent. About acceptability, if you do not accept me today, you will accept me tomorrow. It is a clear mission and I will be persistent about it.”

    On his visit to the Villa, he said: “The meeting with the President was about peace and progress of the nation which he stands for and I stand for. What is also key is youth empowerment. That is the main purpose of this meeting.

    He said the President as a progressive was happy about the idea.

  • Akwa Ibom collaborates with Ghana on cocoa production

    The Akwa Ibom government has reaffirmed its commitment to making cocoa farmers play a key role in the economic sector of the country.

    The Commissioner for Agriculture and Natural Resources, Dr. Matthew Nathan Ekaette, while exchanging views with the Paramount Ruler of Ini, Ntoeng Effiong Udo Akpan, at his palace last week, said Governor Udom Emmanuel had discovered cocoa which is like gold in Ini Local Government Area.

    Ekaette, accompanied by Dr. Abraham Kay and four technical experts from John Kouffor Foundation, Ghana, noted that the government is committed to changing the investment direction of the state to sustain agriculture and give Akwa Ibom a place in the global production map.

    According to him, a farmer should be one of the financially buoyant individuals in his community; be able to send his children to the best schools and contribute to the society from his resources as a farmer.

    He assured that the Emmanuel administration would reverse the trend, saying that beyond getting cocoa farmers to do their jobs, they would get inputs on how best to handle issues.

    Ekaette said the on-going cocoa revolution in the state promised to be a major source of revenue to the state government because it had brought in experts from Ghana to help the farmers increase their production.

    “Cocoa production in the state is low and the pruning exercise is aimed at improving cocoa yields from the present 300kg per hectare to 600kg per hectare between 2016-2017; from 600kg/hectares to 900kg/hectares between 2017-2018; from 900kg/hectare to 1000kg/hectare between 2018-2019; from 1000kg/hectare to 1500kg/hectare between 2019 -2020,” he stated.

    Declaring open the zoning/mapping exercise, Dr. Kay observed that the potential of cocoa farmers  in the state are far more than what they have in Ghana. During the pruning, farmers who were trained on maintenance operations using Farmers Field School (FFS) model, expressed gratitude to Emmanuel for initiating the training programme for farmers in the 20 cocoa producing communities.

    The pruning covered 13 local government areas.

    These were Ini, Ikono, Uruan, Essien Udim, Abak, Ukanafun, Etim Ekpo, Mkpat Enin Ibiono Ibom, Uyo, Ikot Ekpene, Etinan and Obot Akara. The remaining eight local government areas: Ikot Abasi, Itu, Nsit Ubium, Ibesikpo Asutan, Nsit Ibom, Oruk Anam and Onna will be covered by the end of January 2016, he said.

  • Reps urge govt on cocoa export standard

    The House of Representatives yesterday urged the Federal government to provide incentives and farm inputs to cocoa farmers to enable them increase the quality of cocoa they produce.

    According to the lawmakers, this would allow the farmers to make high quality cocoa beans available at reasonable prices for the processing factories both locally and internationally.

    The House also urged the National Agency for Food and Drug Administration and Control (NAFDAC) to ensure that cocoa and other products are properly processed to meet regulatory requirements and global standards before being exported.

    This was sequel to the adoption of the prayers of a motion sponsored by a member, Hon. Mayowa Akinfolarin.

    According to the lawmaker,  in the past, no agricultural commodity surpassed cocoa in terms of earnings of foreign exchange, adding that the cocoa sub-sector still offers huge employment opportunities, directly and indirectly.

    He however regretted that for a long while, cocoa processing companies have faced a lot of challenges ranging from high cost of production, unpredictable and fluctuating prices of raw cocoa beans, lack of funds and non-standardised cocoa products.

    He said: “While Nigeria, like other countries, is focusing on agro-business to earn more foreign revenue, it’s main challenge in the exploitation of cocoa and other products is that exporters do not follow the law on standardisation.

    “It is of concern that cocoa and other agricultural products are exported without testing, which leads to the products being returned or destroyed when they are tested abroad and found to be below global standard.

  • Govt urged to build cocoa factories

    Govt urged to build cocoa factories

    The Federal Government should build cocoa factories to address youth unemployment, the Operating Officer (COO), The Centre for Cocoa Development Initiative, Inc, Robo Adhuze, has said.

    He said establishing new cocoa processing industries and revamping others would increase economic opportunities through sustainable and competitive cocoa production, marketing and agro-enterprise development.

    He  lamented  that cocoa processing has declined substantially, appealing to the government to breathe a new life into the industry by making dedicated attempts to revitalise the processing segment through financial support to  ailing businesses.

    He called on the government to create the foundation for a modern, viable cocoa industry that will flourish and attract new investors, enhance rural livelihoods and encourage self-employment, and maximise the country’s opportunity to receive a premium price for the product on the world market.

    He urged the government to take steps to boost cocoa production by supporting farms to move from traditional crop growing agriculture to agro-processing.

    He added that the level of public sector investment was  low, reflecting that the government is not committed to boosting cocoa production.

    He urged the government to support farmers, by providing more access to extension services and training in best practices, adding that it would have an impact on the domestic cocoa industry.

    He asked the government to treat cocoa production as national commodity and to develop it to increase the national economic growth.

    Meanwhile, participants at the just-international cocoa conference  in Calabar, the Cross River State capital, agreed that if well developed cocoa can bolster the economy, or displace petroleum products as a primary foreign exchange earner.

    The event was organised by the Cocoa Association of Nigeria (CAN) and World Cocoa Producers Organisation.

    CAN President, Sayina Riman, explained that the conference was convened to help critical stakeholders in the industry discuss price risk management project, which had over the years critically impacted against smallholder farmers and other developing economies globally.

    Executive Director, Cocoa Research Institute of Nigeria (CRIN), Prof. Malachy Akoroda, said cocoa had great economic potential for the country given the high demand for it around the world.

    “Cocoa is number one non-oil export earner for Nigeria even when it is not enjoying desired state support, push and encouragement for local farmers. The product has great hope. There are great demands for cocoa bye products in Western and Eastern countries but capacity to supply is limited,” he said.

    Akoroda noted the quality of cocoa produced in Nigeria, saying it is the best globally because of the high-breed species.

    He said it had impossible for farmers to plant, nurture and have a high-yield specie in six months, adding that even in 18 months, there could be unimaginable and bounty harvest compared to what can be obtainable with old species.

    “Anyone can plan this specie and make real good profit, so that, say, in five years, it is possible for the farmer to make as much as N15 million in profit”, the expert said.

    He, however, lamented that pricing had been the major challenge because of factors, such as fertiliser, transportation and politics, in the world market.

    Riman said cocoa business could change the economic fortunes of Nigeria, adding that it is more sustainable than oil because there is possibility that oil can dry but cocoa will not.

  • Wanted: A blueprint for profitable cocoa farming

    The Chief Operating Officer, Centre for Cocoa Development Initiative, Mr Robo Adhuze, has called for a blueprint that will make cocoa farming profitable.

    He appealed to investors to pump funds into cocoa production and help to position the industry as a viable area for economic growth, wealth creation and employment.

    To create a robust industry, Adhuze said the industry needed nurseries, processing facilities, more training for cocoa farmers and increased extension services that the association provides to make a sustainable impact on the industry.

    He said the sector needed assistance to help attract more youths to the industry, considering that the average age of cocoa farmers is 60.

    He said young farmers need all the assistance to sustain their interest in the cultivation of the commodity, which should include access to fund, land, fertiliser and other chemicals at a highly subsidised rate.

    He said there was need for the government to pursue a transformative initiative aimed at  empowering farmers to become more productive and secure for the future of cocoa.

    He said cocoa farmers needed more support and that they should be paid a fair price.

    Given the varied issues facing farming communities, he stressed that the right strategies would  help turnaround the sector.

    He said some local cocoa farmers had abandoned their land, which they considered unproductive, following poor yields of their cocoa trees that have a life span of between 25 and 30 years, calling for assistance to enable them replace them.

  • Nigeria’s thorny road to cocoa revival

    Nigeria’s thorny road to cocoa revival

    Nigeria plans to reclaim her position as a global powerhouse in cocoa production and export. But, experts say without evolving a vibrant local chocolate industry to benefit from the entire cocoa value chain, and addressing some fundamental issues agitating the minds of cocoa farmers and stakeholders, the road to achieving the feat remains rough. Assistant Editor CHIKODI OKEREOCHA reports.

    Some people may not have noticed, but a revolution, somewhat silent, is sweeping through the cocoa segment of the agric sector. The revolution, when completed, would hopefully, return Nigeria to the height of its glory in the global cocoa industry.

    Apparently prompted by the economic crisis caused by the crashing oil price in the international market, which has forced the Federal Government to look towards the non-oil sector, the revolution, according to the former Minister of Industry, Trade and Investment, Dr Olusegun Aganga, would help Nigeria claim a greater share of the global market for finished goods made from cocoa estimated at $200 billion yearly.

    The ex-minister, who spoke at the Nigerian Cocoa Value Addition Summit, in Abuja, said the renewed emphasis on cocoa would create thousands of jobs. According to him, the government was repositioning to extract immense value from the cocoa industry where the global value of exporting raw cocoa is approximately $10 billion a year, while the total value from chocolates is over $100 billion a year. He said government was working on deriving benefits from cocoa for farmers and Nigerians through the implementation of initiatives and expansion projects in cocoa processing and manufacturing.

    Part of the initiative that has earned the government the buy-in and support of farmers and key stakeholders in the cocoa sub-sector, was the distribution of hybrid cocoa pods to farmers across the country to boost production and exports. At the last count, over 1.4 million hybrid cocoa pods, according to the former Minister of Agriculture and Rural Development, Dr. Akinwumi Adesina, have been distributed to  farmers across the country.

    Adesina, who spoke at the same event, said this translates to about 50 million seedlings, which are enough for farmers to plant 46,000 hectares of new cocoa plantation. This is based on the yield capacity of the distributed hybrids to produce five times the yield of what farmers get today, which is 2.5 tonnes as against 0.5 tonnes. He promised that with the introduction of the Cocoa Corporation of Nigeria (CCON), the government would be able to co-ordinate the sector and facilitate access to finance.

    That is not all. Cocoa farmers are also being provided with critical inputs, such as agro-chemicals, to guard against black pod and insects, and fertiliser to enhance yield per hectare. “We have also succeeded, for the first time, to introduce a specifically formulated fertiliser for cocoa. Cocoa farmers are also given agro-chemicals, insecticides, fungicides, in addition to fertiliser and hybrid pods,’’ Team Leader, Cocoa Value Chain Development at the Federal Ministry of Agriculture, Dr. Peter Aikpokpodion, said.

    The Cocoa Research Institute of Nigeria (CRIN), Ibadan, Oyo State, The Nation learnt, is also carrying out lots of researches on cocoa bread, liquor and cocoa detergent. According to its Director, Mr. Malachi Akoroda, a few projects were being executed in collaboration with foreign partners to research more into cocoa and see how it can be improved upon by way of partnerships, collaborations and linkages.

    Interestingly, some of these efforts appear to be yielding fruit. For instance, in 2014 alone, Nigeria recorded the highest export of cocoa and its products valued at N131b, according to the Nigeria Export Promotion Council (NEPC). “Cocoa and cocoa preparations were the highest exported products in 2014 with the trade volume on cocoa amounting to N131.2 billion,’’ NEPC noted.

    Statistics from NEPC show that Nigeria recorded N43.191billion exportation of the products in the first quarter of the year, while more than N18. 558billion was recorded in the second quarter. Over N24. 845 billion was recorded in the third quarter, while N44. 695b was recorded in the fourth quarter. NEPC said the exportation of the products was part of the Federal Government’s plan to develop and enhance market opportunities for non-oil export sector through the National Strategy Export Products (NSEP).

    The Federal Government in January marked out 13 NSEP to replace the nation’s over dependence on petroleum products. According to Aganga, tumbling prices of petroleum products at the international markets was threatening the stability of the Nigerian economy hence, this was part of Federal Government’s moves to revive the dwindling national economy with emphasis on rapid growth of the non-oil sector for exports.

    Although, 12 products were originally identified under the NSEP, the number increased because the Executive Director of NEPC, Mr. Segun Awolowo, made a case for the inclusion of Cashew on the list. Aganga listed the 13 NSEP in three categories, including agro-industrial-palm oil, cocoa, cashew, sugar and rice. Others are mining-related such as cement, iron ore/metals, auto parts/cars, aluminium, oil and gas industrial products, petroleum products, fertiliser/urea, petrochemical and methanol.

    However, while these efforts may have put Nigeria on the threshold of regaining her lost glory as a leading cocoa producer, there is a snag: lack of a vibrant chocolate industry to process cocoa into chocolate and other finished products. Ninety per cent of chocolate products in the market are imported from Europe and other African countries such as Ghana, Cote d’Ivoire and South Africa.

    The Nation learnt that there are few processing companies with the capacity to process cocoa into chocolate in Africa’s largest economy; a situation that has denied Nigeria the opportunity of enjoying the full benefit of the ongoing revolution in the sub-sector. Issues such as regular supply of cocoa, capital to establish local processing plants, and the challenge of marketability viz-a-viz imported chocolate, among others, have been identified as serious obstacles to the emergence of a vibrant local chocolate industry.

    This was why Adesina, for instance, has been advocating that Nigeria produce chocolates instead of exporting raw beans. He said cocoa processing factories generate between $90 million and $400 million yearly even at their low capacity rates, urging Nigerians to give more priority to processing instead of exportation of cocoa beans. Adesina, who spoke at the recent 50th anniversary of CRIN, added that a special intervention fund will also be established to support cocoa processors for asset acquisition and working capital.

    The Founder, Centre for Cocoa Development Initiative, a Non-governmental Organisation (NGO), Mr. Robo Adhuze, told The Nation that at the moment the ‘N100billion Cocoa Intervention Fund’ announced by the Federal Government to support cocoa processors remains at the level of a proposal. He, however, said the recent feat achieved by the Ondo State Government’s ‘Cocoa Revolution Project’, particularly in the area of cocoa processing, is an indication that government’s ongoing efforts at revamping cocoa is yielding positive result.

    Adhuze, whose NGO focuses on promoting the development of cocoa in Nigeria and fostering awareness on the usefulness of cocoa products, said Ondo State won the Chocolate Silver Awards at the recently concluded seventh edition of the yearly Academy of Chocolate Award, at the Fortnum & Mason Piccadilly, London.

    At the event, which attracted major cocoa/chocolate and confectionery industry stakeholders across the globe, cocoa produced in the state, for chocolate production, received world certification and recognition. The state was mentioned at the ceremony as the only chocolate award winner from West Africa that produces 75 per cent of global cocoa bean output.

    Chairman of the state Cocoa Revolution Implantation Committee, Jibayo Oyebade, said the product had already been presented to the partnering firm overseas, Cargill Cocoa and Chocolate firm in Netherland. “We taught our cocoa farmers on how to improve the quality of their cocoa through proper fermentation. Our partners have taken our sample, and are satisfied with it.

    “I am proud that our effort has yielded good results. We want to reproduce chocolate from our own cocoa,” Oyebade said, adding that only 300 kilogrammes of the product was sent as sample. He also said the state would increase production and establish a chocolate academy and factory.

    The Ondo feat has been a wake-up call of sorts for other cocoa producing states. According to Adhuze, several states are eager to replicate Ondo’s success by riding on the crest of the cocoa transformation programme midwifed by the Federal Ministry of Agriculture and Rural Development (FMARD).

    The Nation learnt that apart from Ondo, a number of state governments have already indicated interest to be listed on the cocoa value chain intervention programme of the FMARD. For instance, only six states were involved in the programme’s implementation in 2012, but that doubled the following year 2013.

    Adhuze said what gave Ondo State an edge in exploiting the entire cocoa value chain in terms of marketing, processing and adding value was that out of about 10 cocoa processing factories in the country five are located in the state. He, however, noted that although about 24 states fall under what is described as ‘Nigeria’s Cocoa Belt’ only eight are commercially viable, and they form the hub for the current economic regeneration anchored on cocoa production and export.

    “We have enough cocoa processing factories; the only thing is that they are not performing optimally because of high cost of fund and energy,” Adhuze told The Nation, adding that in the next five or seven years, Nigeria would meet its target in cocoa production and export.

     

     

  • Nigeria’s thorny road to cocoa revival

    Nigeria’s thorny road to cocoa revival

    Nigeria plans to reclaim her position as a global powerhouse in cocoa production and export. But, experts say without evolving a vibrant local chocolate industry to benefit from the entire cocoa value chain, and addressing some fundamental issues agitating the minds of cocoa farmers and stakeholders, the road to achieving the feat remains rough. Assistant Editor CHIKODI OKEREOCHA reports.

    Some people may not have noticed, but a revolution, somewhat silent, is sweeping through the cocoa segment of the agric sector. The revolution, when completed, would hopefully, return Nigeria to the height of its glory in the global cocoa industry. Apparently prompted by the economic crisis caused by the crashing oil price in the international market, which has forced the Federal Government to look towards the non-oil sector, the revolution, according to the Minister ofIndustry, Trade and Investment, Dr Olusegun Aganga, would help Nigeria claim a greater share of the global market for finished goods made from cocoa estimated at $200 billion annually.

    The minister, who spoke at the Nigerian Cocoa Value Addition Summit, held in Abuja, recently, said the renewed emphasis on cocoa will create thousands of jobs. According to him, government was repositioning to extract immense value from the cocoa industry where the global value of exporting raw cocoa is approximately $10 billion a year, while the total value from chocolates is over $100 billion a year. He said government was working on deriving benefits from cocoa for farmers and Nigerians through the implementation of initiatives and expansion projects in cocoa processing and manufacturing.

    Part of the initiative that has earned the government the buy-in and support of farmers and key stakeholders in the cocoa sub-sector, was the distribution of hybrid cocoa pods to farmers across the country to boost production and exports. At the last count, over 1.4 million hybrid cocoa pods, according to Minister of Agriculture and Rural Development, Dr. Akinwumi Adesina, have been distributed to  farmers across the country.

    Adesina, who spoke at the same event, said this translates to about 50 million seedlings, which are enough for farmers to plant 46,000 hectares of new cocoa plantation. This is based on the yield capacity of the distributed hybrids to produce five times the yield of what farmers get today, which is 2.5 tonnes as against 0.5 tonnes. He promised that with the introduction of the Cocoa Corporation of Nigeria (CCON), the government would be able to co-ordinate the sector and facilitate access to finance.

    That is not all. Cocoa farmers are also being provided with critical inputs, such as agro-chemicals, to guard against black pod and insects, and fertiliser to enhance yield per hectare. “We have also succeeded, for the first time, to introduce a specifically formulated fertiliser for cocoa. Cocoa farmers are also given agro-chemicals, insecticides, fungicides, in addition to fertiliser and hybrid pods,’’ Team Leader, Cocoa Value Chain Development at the Federal Ministry of Agriculture, Dr. Peter Aikpokpodion,said.

    The Cocoa Research Institute of Nigeria (CRIN), Ibadan, Oyo State, The Nation learnt, is also carrying out lots of researches on cocoa bread, liquor and cocoa detergent. According to its Director, Mr. Malachi Akoroda, a few projects were being executed in collaboration with foreign partners to research more into cocoa and see how it can be improved upon by way of partnerships, collaborations and linkages.

    Interestingly, some of these efforts appear to be yielding fruit. For instance, in 2014 alone,Nigeria recorded the highest export of cocoa and its products valued at N131b, according to the Nigeria Export Promotion Council (NEPC). “Cocoa and cocoa preparations were the highest exported products in 2014 with the trade volume on cocoa amounting to N131.2 billion,’’ NEPC noted.

    Statistics from NEPC show that Nigeria recorded N43.191b exportation of the products in the first quarter of the year, while more than N18. 558b was recorded in the second quarter. Over N24. 845 billion was recorded in the third quarter, while N44. 695b was recorded in the fourth quarter. NEPC said the exportation of the products was part of the Federal Government’s plan to develop and enhance market opportunities for non-oil export sector through the National Strategy Export Products (NSEP).

    The Federal Government in January marked out 13 NSEP to replace the nation’s over dependence on petroleum products. According to Aganga, tumbling prices of petroleum products at the international markets was threatening the stability of the Nigerian economy hence, this was part of Federal Government’s moves to revive the dwindling national economy with emphasis on rapid growth of the non-oil sector for exports.

    Although, 12 products were originally identified under the NSEP, the number increased because the Executive Director of NEPC, Mr. Segun Awolowo, made a case for the inclusion of Cashew on the list. Aganga listed the 13 NSEP in three categories, including agro-industrial-palm oil, cocoa, cashew, sugar and rice. Others are mining-related such as cement, iron ore/metals, auto parts/cars, aluminium, oil and gas industrial products, petroleum products, fertiliser/urea, petrochemical and methanol.

    However, while these efforts may have put Nigeria on the threshold of regaining her lost glory as a leading cocoa producer, there is a snag: lack of a vibrant chocolate industry to process cocoa into chocolate and other finished products. At present, 90 per cent of chocolate products in the Nigerian market are imported from Europe and other African countries such as Ghana, Cote d’Ivoire and South-Africa.

    The Nation learnt that there are few processing companies with the capacity to process cocoa into chocolate in Africa’s largest economy; a situation that has denied Nigeria the opportunity of enjoying the full benefit of the ongoing revolution in the sub-sector. Issues such as regular supply of cocoa, capital to establish local processing plants, and the challenge of marketability viz-a-viz imported chocolate, among others, have been identified as serious obstacles to the emergence of a vibrant local chocolate industry.

    This was why Adesina, for instance, has been advocating that Nigeria produce chocolates instead of exporting raw beans. He said cocoa processing factories generate between $90 million and $400 million annually even at their low capacity rates, urging Nigerians to give more priority to processing instead of exportation of cocoa beans. Adesina, who spoke at the recent 50th anniversary of CRIN, added that a special intervention fund will also be established to support cocoa processors for asset acquisition and working capital.

    The Founder, Centre for Cocoa Development Initiative, a Non-governmental Organisation (NGO), Mr. Robo Adhuze, told The Nation that at the moment the ‘N100b Cocoa Intervention Fund’ announced by the Federal Government to support cocoa processors remains at the level of a proposal. He, however, said the recent feat achieved by the Ondo State Government’s ‘Cocoa Revolution Project’, particularly in the area of cocoa processing, is an indication that government’s ongoing efforts at revamping cocoa is yielding positive result.

    Adhuze, whose NGO focuses on promoting the development of cocoa in Nigeria and fostering awareness on the usefulness of cocoa products, said Ondo State won the Chocolate Silver Awards at the recently concluded 7th edition of the annual Academy of Chocolate Award, held at the Fortnum & Mason Piccadilly, London.

    At the event, which attracted major cocoa/chocolate and confectionery industry stakeholders across the globe, cocoa produced in the state, for chocolate production, received world certification and recognition. The state was mentioned at the ceremony as the only chocolate award winner from West Africa that produces 75 per cent of global cocoa bean output.

    Chairman of the state Cocoa Revolution Implantation Committee, Jibayo Oyebade, said the product had already been presented to the partnering firm overseas, Cargill Cocoa and Chocolate firm in Netherland. “We taught our cocoa farmers on how to improve the quality of their cocoa through proper fermentation. Our partners have taken our sample, and are satisfied with it.

    “I am proud that our effort has yielded good results. We want to reproduce chocolate from our own cocoa,” Oyebade said, adding that only 300 kilogrammes of the product was sent as sample. He also said the state would increase production and establish a chocolate academy and factory.

    The Ondo State feat has been a wake-up call of sorts for other cocoa producing states. According to Adhuze, several states are eager to replicate Ondo’s success by riding on the crest of the cocoa transformation programme midwifed by the Federal Ministry of Agriculture and Rural Development (FMARD).

    The Nation learnt that apart from Ondo, a number of state governments have already indicated interest to be listed on the cocoa value chain intervention programme of the FMARD. For instance, only six states were involved in the programme’s implementation in 2012, but that doubled the following year 2013.

    Adhuze said what gave Ondo State an edge in exploiting the entire cocoa value chain in terms of marketing, processing and adding value was that out of about 10 cocoa processing factories in the country five are located in the state. He, however, noted that although about 24 states fall under what is described as ‘Nigeria’s Cocoa Belt’ only eight are commercially viable, and they form the hub for the current economic regeneration anchored on cocoa production and export.

    “We have enough cocoa processing factories; the only thing is that they are not performing optimally because of high cost of fund and energy,” Adhuze told The Nation, adding that in the next five or seven years, Nigeria would meet its target in cocoa production and export.