In the not too distant past, Nigeria relied on agriculture to boost its economy. There was cocoa in the West; palm oil in the East and groundnut in the North. The country abandoned agriculture when it found oil. But with the economy in dire straits, Mr. Neji Abang, the Country Coordinator Socodevi, an international agency, believe, a return to the land will rejuvenate the economy. In this interview with DANIEL ESSIET, Abang says cocoa production could do the magic of turning the economy round, urging banks to change their attitude towards funding agriculture.
How has the state of the economy affected food production?
Let me say that Nigeria has weathered internal and external economic shocks which should provide a lot of lessons in economic management. The issue is whether the leadership has learnt enough from these experiences to put in place pragmatic measures towards achieving healthy economic growth rates. Right now, I think a lot still needs to be done to revamp the economy if we really want to stimulate economic growth that is more broad-based, driven by domestic demand, infrastructure and increased trade in manufactured goods. Experts keep emphasising on the need to create opportunities for all through prudent macro-economic management. Any slackening on macro management will undermine future economic growth. In the medium to long-term, I expect the government to provide incentives for more Nigerians to enable them participate in the various food value chains, which is viewed as part of the strategy for achieving strong, sustained and inclusive growth. The potential to stimulate a range of activities that bring a product from conception to delivery to the consumer is in the agric sector. This could serve as a springboard for economic diversification, domestic resource mobilisation and investments in critical infrastructure. Government needs to invest more in the productive sectors, building skills, creating jobs and acquiring new technology, knowledge and market information.
Will these interventions impact on the fortunes of the cocoa industry?
These interventions require sound public policies, as well as entrepreneurs that are willing and capable of helping achieve these gains. The agric sector has a great potential to grow the economy, support rapid rural development and natural-resources assets. To achieve this, we need public policies articulated in a targeted strategy that promotes more equitable economic and social transformation and an environmentally sound development. The new crops and technologies have been brought in to enrich our agricultural diversity.
The challenge, however, is that they are not well integrated with local agricultural production systems. Most traditional cash crops are mainly produced in large plantations which had no linkage with small holders. Then we have not been able to diversify food sources to reduce dependence on major food crops. The hope, however, is that the government is promoting food crop production based on productivity improvements. Through the Agricultural Transformation Agenda, certain food crops are prioritised as the centre of agricultural policy. What we need is a consistent agricultural development strategy in which packaged measures such as irrigation development, enhancement of farmer-centered agricultural research and extension and agro-input industry development.
The Federal Government is working on doubling cocoa production to 500,000 metric tonnes (MT) by next year. Is this achievable?
Yes and no. The Minister of Agriculture and Rural Development, Dr. Akinwunmi Adesina, said the government plans to boost cocoa production to 500,000MT by next year. We can only achieve this if farmers have access to early-maturing, high-yielding, disease-resistant beans. There have been efforts to distribute varieties of cocoa that can mature in about 18 months to farmers to replace the traditional crop with four to five years maturity. The new varieties produce 1½ metric tonnes of cocoa per hectare (2.47 acres) each season compared with the older types which yield ½ tonne. The cocoa year is divided into two harvests with the main one beginning in October and ending in January, while the smaller crop usually begins in April and ends in June. The dates may vary each year depending on the weather. Cocoa production is calculated based on the rain pattern from the main crop season, which starts from October to February or March; and the light crop season from April to September.
Currently, several states such as Ondo, Ekiti, Edo, Cross River, Osun, Oyo, Ogun, parts of Abia and Taraba grow the crop for commercial purposes. There had been steady increase in output over the past five years except in the 2011/2012 season when the crop was infected by diseases. Definitely, there has been steady increase in production of cocoa in the last five years. A report said cocoa production should hit 305,000 MTs by September this year. It also said the output for 2011/2012 planting season was 250,000 metric tonnes, with a 10 per cent increase in the 2012/2013 season, that is, 270,000 metric tonnes. Cocoa bean is also said to have increased in price to N420,000 per MT, up from N300,000 per MT about a year ago. Last year, the challenge we had was the drought that affected production and that did not encourage farmers to reinvest. But this year, we are hopeful because the revival came when the rains started earlier than we expected.
A few years back, there were free seedlings given out; and as you know, when there are incentives in the area of seedlings within one to two years, they will start yielding results. Despite the increase in the last five years, the country is still far behind other countries in terms of annual output. For instance, Ivory Coast, which is currently the largest producer of cocoa, is estimated to have been hitting one million MTs per annum in the last few years, while Ghana produces between 900,000MT and 950,000MT, rising to 1.1 million MTs in 2011-2012, and falling again due to the fungi attack. Cocoa farming is a good business but government’s support is usually not enough. There is no policy on cocoa; what happens is that as a minister comes in, he does whatever he likes and another comes in to do it in his own way.
Why is this so despite the efforts you have spoken about?
There is no document to work with; any framework or procedure to follow. During the cocoa board era a few years back, farmers protested and many of them turned their farms to arable farmland because there was no si8upport and they constantly had to battle to save their crops which affected production.
By 1999 when the President Olusegun Obasanjo’s regime started, Nigeria was doing just around 170,000 metric tonnes per annum. We tried to get a framework for the industry during that regime late in 2006. But by that time, people were more interested in politics; so, it was not achieved. In the 2005/2006 season, there was cocoa rebirth and people started planting in Osun, Ondo, Edo, Cross River and some parts of Abia states; and all of these are just coming into commercial production now; that is why we are experiencing this leap.
What challenges do you see?
The challenge right now is that cocoa production is being hampered by a failure to modernise ageing plantations and attract young farmers to the sector. Cocoa output has been erratic. It has oscillated between record production and sharp drops in recent years. This has been blamed on poor weather, disease outbreaks and lack of farming inputs. Losses due to disease and pests claim between 30 and 40 per cent of the nation’s harvest. We could see some changes if there is increased fertiliser use, sustainable farm management and quality control.
Ageing trees and a lack of investment have driven down yields, reducing volumes produced and lowering farmer incomes. Bean quality has suffered as a result. Farmers often sun it on tarred roads and beans are not fermented. It is necessary to train farmers to produce quality and not only quantity. The government needs to support cocoa dryers in the main growing areas to reduce the presence of smoke in beans and reinforce controls to meet tougher European Union (EU) quality standards. Globally, the industry is gearing towards sourcing only certified traceable cocoa from sustainable farms by 2020. Our worry is that many farmers may not be able to afford the required investments and could be left behind. If we are going to improve production, then we have to rejuvenate its trees, many of which are a half-century old. Farmers are recording huge losses with the current crop variety. In some cases, diseases have ravaged trees and harsh weather killed off flowers and small pods. The government needs to support the industry with disease-resistant, high-yield cocoa seedlings for planting. The cocoa transformation programme is on course, but only a handful of nurseries have been established.
On the other hand, I will say that it is also practically impossible for us to meet the target of tripling output to 600,000 tonnes within the planned period given the state of things. Trees require six years to hit peak production and for Nigeria to reach its target, the programme should have been running at full steam now. But this has not been the case. What they are doing now is neither here nor there. There is a lot of lip service and it is as if they don’t know what to do. The cocoa sector has too many problems. We need to completely restructure it.
Why is it difficult to attract young Nigerians to cocoa farming?
Young people think they can achieve success in life in an office in town rather than on farms. Some of them are not aware of government-backed incentives aimed at drawing them into the cocoa sector. The sector is comparatively unattractive to them, due to low productivity. This same problem of low productivity affected our parents and made them poor. Looking at their economic situation, no youth would like to become poor like them and so they go for other ventures. What is needed most to attract the young generation to become cocoa farmers, in my view, is the provision of adequate incentives such as good planting materials, fertilisers, chemicals, and other things that will ensure improved productivity as well as good pricing of the cocoa bean, to make the cocoa business comparatively better than most white collar jobs. There should also be a policy to help the youth to get access to land as the current land tenure system prevents more young people from having access to land. Cocoa production should be introduced as part of school curriculum, at least in the cocoa producing regions, from primary through to senior high school. This would certainly help the youths to acquire knowledge and skills in cocoa farming, thereby boosting their interest in cocoa production. Government can lure young people to cocoa farming by creating new plantations and giving logistical and financial help to new farmers.A lot of buyers are playing a greater role from farms to export, to guarantee supply. Some multinationals are partnering with cocoa farmers. They provide them with financing to enable the production of certified cocoa for the firm. I believe this could be an incentive to attract the youth as they will know that they would have future security if they are in cocoa farming.
Total cocoa production stood at 300,000 tonnes last year showing an increase of seven per cent compared to the previous year. Does this give hope?
The government, under its Cocoa Transformation Action Plan (CTAP) has targeted cocoa production to increase by 40 per cent to reach 500,000 tons by 2015. Incentives at attaining production goals remain inadequate. I want to say that increasing adherence by local cocoa farmers in achieving certification is shoring up demand and prices for our cocoa at the international market. These factors, as it appear would continue to encourage farmers to rehabilitate abandoned farms and also increase areas under production. The other issue is the suspension of the Export Expansion Grant (EEG) in 2012.This discouraged local cocoa processing. Local cocoa processing increased in 2010 and 2012, spurred largely by the introduction of the EEG export incentive rebate programme to encourage non-oil exports. However, government suspended the EEG programme by mid-2012 following sharp practices in cocoa export reporting by certain exporters. Since then, local cocoa processing has dropped significantly. We are hoping the government reviews the scheme in time to correct the identified inadequacies. This will go a long way. Without this, we have a big challenge at hand. In 2011, Dr Adesina set out clear goals in his “Cocoa Transformation Agenda” which among other things, aimed to double cocoa production in Nigeria from 250,000 to 500,000 metric tonnes by 2015 and achieve a 25 per cent processing rate of the national output within four years. This can be achieved with through the availability of cocoa farm land. Major works have to be done on educating and providing local farmers with crucial equipment such as agro-chemicals and imported fertiliser, formulated specifically for cocoa farming, insecticides and hybrid pods, as well as improving farmer skills. The incentives at attaining production goals remain inadequate.
Your organisation, the World Cocoa Foundation (WCF) and the Federal Ministry of Agriculture and Rural Development announced $1.2 million in new funding to provide assistance to 70,000 cocoa farming households in Nigeria. What is this supposed to cover?
The programme will focus on business skills training and support for diversification of rural economies to increase cocoa farm household incomes. It will benefit 10 states by next year. The programme is expected to generate benefits for more than 480,000 Nigerians and help double household incomes within the next five to six years. Our partnership with the Federal Government of Nigeria is built on the foundation of our Cocoa Livelihoods Programme (CLP). It is funded by the Bill & Melinda Gates Foundation and WCF member companies with partners from the German Development Agency GIZ. This partnership will ensure that the Nigerian programme benefits from lessons already learned through CLP’s engagement in other West African cocoa-producing countries. The farmers will be registered, grouped and trained. They are expected to go back and adopt new techniques and practices which will lead to certification of their produce. The issue is that there is pressure from European consumers that exporters should train their farmers to produce according to the international standards. They have emphasised that any cocoa that is not certified by 2020 would not be allowed to enter Europe. So, with certification comes a premium price. The premium is a reward for complying with quality specifications and good agricultural practices. At the end of the implementation of government policy on cocoa production which has started, the Nigerian market will be opened up for competitive cocoa production, it will result in job creation, increased gross domestic product (GDP), generate revenue for cocoa farmers; and most importantly, encourage the establishment of industries that would utilise cocoa as raw material in the country.
How will you describe cocoa farming in the country?
Cocoa production is a very lucrative venture if farmers apply business principles. They should adopt sustainable practices in the production process. We have signed a Memorandum of Understanding (MoU) with the Federal Ministry of Agriculture to train 70, 000 cocoa farmers and 100 groups in 10 cocoa producing states. The states are Ondo, Cross River, Osun, Ekiti, Edo, Ogun, Abia, Oyo, Kogi and Akwa-Ibom. Socodevi Nigeria, a Canadian non-governmental organisation (NGO), is managing the programme for WCF. The programme is geared towards increasing cocoa production from 450 kilogramme (kg) per hectare to about 800 kg per hectare. The training had become necessary because many farmers have limited access to information and education on improved farming techniques that could enhance their yield. For the nation to achieve its goal of food sufficiency, farmers must have access to quality inputs such as sowing seeds, herbicides and pesticides, or to critical information such as accurate weather forecasts that could help them improve the quality of their crops. The success of the programme in improving farmers’ income through increased yield and savings on production costs has stimulated an upsurge of demand for more programmes in other communities. Trainers are drawn from Agricultural Development Programme (ADP) offices across the country and department of cooperatives of states involved in the programme. This will lead to certifying the cooperatives. Using the Farmers Business School (FBS) model, 70,000 cocoa farmers would be trained as entrepreneurs, thereby increasing their capacities to effectively manage their farms as businesses.
What is your take on the staple food processing zones project and the benefits for farmers?
The Federal Government has launched the staple food processing zones project with the aim of increasing staple food crop yields, increasing average farm income, restoring degraded farms in areas which are critical to food supplies but continue to record dismal food production due to poor agricultural practices. I believe it will lift at least 25 per cent of poor households above the poverty line. The programme will help poor farm families to boost their income from agriculture. Right now, we are encouraging small holder farmers to grow crops that will insulate them from food insecurity, crops that are drought resistant and would provide a good diet. Beyond that, growing high value crops and value-adding are strategies that make these small holdings viable. Small-scale farmers’ agriculture needs better and affordable access to seeds, fertilizer, chemicals and other inputs to become more productive and intensive. The cost of inputs is too high and the only way to deal with that is for the Federal and State governments to subsidise inputs to help farmers plant. While a few small farmers embrace intensive money making strategies, the vast majority of small producers remain caught in the vicious cycle of high food prices, limited production and high input costs that make their lives marginal.
What would you say about financial institutions and their involvement in agriculture?
They are not doing well. If more financial institutions are involved in agriculture, more money will come into the sector, thereby driving household and national income. We need more money to reposition rural farmers into viable businesses as this will also stimulate commercial agribusiness. When did you read about micro finance banks financing small farmers? We need financial institutions that can assist small farmers with capital to invest in farm machineries and equipment. Such initiatives will not only enable farmers to triple profits from the processed agro based products but also open up numerous opportunities for the many unemployed youths in rural areas to have a source of livelihood.
What are some of the challenges and opportunities you face in working with cooperatives and farmers?
As a development agency, we work with cooperatives, with independent farmers as well, which can present its own challenges. Every story is different. The biggest challenge is staying on top of the relationship, making sure they understand what the global cocoa requires, and keeping on top of what the challenges are. It’s all about keeping lines of communication open, fostering that strong level of communication to get the quality and relationship that we’re looking for – that’s the most challenging thing to maintain.
