LAGOS, DECEMBER 4, 2017 – Nigeria is expecting over N240 billion revenue from the sale of cocoa this year as demand for the product soars in the global market.
The report on the exportation of cocoa beans through the sea ports is commendable. The country is expected to produce over 300,000 metric tonnes of the produce this year because of the favourable weather experienced in the last quarter of the year.
According to exporters operating at the Lagos ports, a large chunk of cocoa had been exported this year.
The International Cocoa Organisation (ICCO) had also said a large production of the beans would be witnessed this year in West Africa.
ICCO said Nigeria and Cameroon were reporting good yields and high quality from harvest.
The organisation noted that top producers- Ivory Coast had projected to realise $3.75billion from its production, Ghana-$1.98billion, Nigeria-$704million and Cameroon-$578million. These constitute 70per cent of the total global cocoa production.
The retail market for chocolate candy is valued at $143 billion this year, according to reports.
Also, it projected a 21.5 per cent increase in cocoa production this year in the world market.
It was gathered that a metric ton of the beans has gone up to $2,122.32 from $1,945 per metric ton since June, because of the positive demand for cocoa made products like cereals and chocolate.
A research firm, Business Monitor International (BMI) had projected a growth rate of 15.2 per cent for cocoa production in the same period.
Already, ICCO had said traders were talking of increased demand as prices are now attractive for grinders and chocolate manufacturers.
Meanwhile, the President, Cocoa Association of Nigeria (CAN), Sayina Rimanhad said cocoa producers should expect increased yields.
Riman said some cocoa beans had been stuck with about two-thirds of their produce due to the glut in the world market.
The 2016/2017 cocoa season, which ended about three months ago, recorded huge surplus of 720,000 metric tonnes of cocoa beans valued at N504.1 billion ($1.4billion).
Based on the huge surplus, the price of the beans went down by 39.99 per cent from $3,241 to $1,945 per metric ton between October last year and June this year. The price suddenly however went up geometrically to $2, 122.32 since October this year.
According to ICCO, production had risen from 3.97million tonnes to 4. 69 million tonnes.
Last year, contrary to the current surplus, earnings from cocoa export by Nigeria dropped due to deficit in production.
Last year, ICCO had said major West African cocoa producers, Nigeria, Ghana and Ivory Coast would record a deficit of 147,000 metric tonnes valued at N128.73 billion ($429.1) from cocoa production in the first quarter of the year because of the effect of the harmattan, which had plundered cocoa flowers and buds off trees before they grew into pods.
It also predicted that demand would outstrip supply in 2016, as global industry deficit forecast was estimated at 308,000 from its earlier forecast of 113,000 tonnes in its previous report in February, 2016.
But the forecast failed because of the favourable weather observed in West Africa in the second and third quarters of the year.