Nigeria Cocoa Exports Jumps By 300% From ₦161.8 Billion To ₦644 Billion
The Nigerian cocoa industry has experienced a recent surge in demand and profitability, with data indicating that the country’s annual cocoa volume of 250,000 tonnes is now valued at over $6 billion.
Adding to the cocoa industry’s sweet success, Nigerian cocoa farmers and exporters had a bountiful first half of 2024, earning an estimated N644 billion from the export of cocoa beans, according to data from the National Bureau of Statistics (NBS).
Nigeria’s cocoa exports saw a 298 percent growth in the first half of 2024, reaching N644 billion compared to N161.8 billion in the same period of 2023.
The surge in exports has been attributed to an increase in the price of the key ingredient in chocolate production. Prices have more than tripled since the start of the year, with a new historic high of $8,246 per tonne recorded on November 27, as reported by the International Cocoa Organisation (ICCO).
Poor weather conditions in the world’s top cocoa-producing nations, Ivory Coast and Ghana, have wreaked havoc on harvests, causing a shortage in cocoa supply.
However, in a silver lining moment for Nigerian farmers, their cocoa exports skyrocketed due to the devaluation of the Naira, which fell to as low as N1,675 against the US dollar, as reported by FMDQ. This devaluation made Nigerian cocoa exports relatively cheaper, giving farmers a lucrative edge in a cocoa market struck by scarcity.
Although the global cocoa market is currently riding a sweet wave for Nigerian farmers with prices reaching around $10,000 per tonne, the potential for Nigeria to benefit is not fully realised, as the country continues to be a minor player in the global cocoa arena. Despite once being the second-largest producer of the commodity, Nigeria has slipped to the sixth spot in the world rankings and currently contributes just five percent of the global cocoa supply.
Despite Nigeria’s diminished prominence in the cocoa production landscape, cocoa industry stakeholders continue to champion the pivotal role of cocoa in Nigeria’s economic diversification strategy.
This message was front and center at the 25th Anniversary and Awards Ceremony of Starlink Global & Ideal Ltd., a Lagos-based agricultural marketing company that specializes in the export of cocoa, cashew, sesame seeds, and other key agricultural products.
According to Adeyemi Adeniji, chief executive officer of Starlink, the cocoa industry holds the key to unlocking substantial economic growth for Nigeria.
Highlighting the significant potential of the cocoa sector, Adeniji urged the government to implement policies that encourage industrialisation via backward integration, enabling the country to capitalise on the cocoa value chain and enhance the sector’s impact on the Nigerian economy.
Nigeria Cocoa Exports Jumps By 300% From ₦161.8 Billion To ₦644 Billion
The Nigerian cocoa industry has experienced a recent surge in demand and profitability, with data indicating that the country’s annual cocoa volume of 250,000 tonnes is now valued at over $6 billion.
Adding to the cocoa industry’s sweet success, Nigerian cocoa farmers and exporters had a bountiful first half of 2024, earning an estimated N644 billion from the export of cocoa beans, according to data from the National Bureau of Statistics (NBS).
Nigeria’s cocoa exports saw a 298 percent growth in the first half of 2024, reaching N644 billion compared to N161.8 billion in the same period of 2023.
The surge in exports has been attributed to an increase in the price of the key ingredient in chocolate production. Prices have more than tripled since the start of the year, with a new historic high of $8,246 per tonne recorded on November 27, as reported by the International Cocoa Organisation (ICCO).
Poor weather conditions in the world’s top cocoa-producing nations, Ivory Coast and Ghana, have wreaked havoc on harvests, causing a shortage in cocoa supply.
However, in a silver lining moment for Nigerian farmers, their cocoa exports skyrocketed due to the devaluation of the Naira, which fell to as low as N1,675 against the US dollar, as reported by FMDQ. This devaluation made Nigerian cocoa exports relatively cheaper, giving farmers a lucrative edge in a cocoa market struck by scarcity.
Although the global cocoa market is currently riding a sweet wave for Nigerian farmers with prices reaching around $10,000 per tonne, the potential for Nigeria to benefit is not fully realised, as the country continues to be a minor player in the global cocoa arena. Despite once being the second-largest producer of the commodity, Nigeria has slipped to the sixth spot in the world rankings and currently contributes just five percent of the global cocoa supply.
Despite Nigeria’s diminished prominence in the cocoa production landscape, cocoa industry stakeholders continue to champion the pivotal role of cocoa in Nigeria’s economic diversification strategy.
This message was front and center at the 25th Anniversary and Awards Ceremony of Starlink Global & Ideal Ltd., a Lagos-based agricultural marketing company that specializes in the export of cocoa, cashew, sesame seeds, and other key agricultural products.
According to Adeyemi Adeniji, chief executive officer of Starlink, the cocoa industry holds the key to unlocking substantial economic growth for Nigeria.
Highlighting the significant potential of the cocoa sector, Adeniji urged the government to implement policies that encourage industrialisation via backward integration, enabling the country to capitalise on the cocoa value chain and enhance the sector’s impact on the Nigerian economy.