Stakeholders seek better deal in cocoa value chain opportunities

Amid the glaring reality that Nigeria loses over $2b yearly to under-explored value chain opportunities within the global Cocoa industry, stakeholders have intensified efforts to ensure the sustainability of the cocoa economy in the continent.

Investigations showed that from its vantage position as one of the leading cocoa producers in the world, Nigeria manages to process a meager 0.1 per cent of its cocoa beans into chocolate.

Ranked fourth among the cocoa producing countries globally, behind Cote d’Ivoire, Ghana, and Indonesia, with a production capacity of 340,163 tonnes, industry experts say the country has failed to tap into the potentials hold by the produce’s value chain.

The National President, Cocoa Farmers Association of Nigeria (CFAN), Comrade Adeola Adegoke, who spoke on his experience at the just concluded World Cocoa Conference in Brussels, Belgium, said West African cocoa origin countries “must start to chocolatise the tongues of our children,” in order to change the culture of low cocoa consumption that transcends from one generation to another.

He said the power of the region must not only lie in production but more energy must be put into consumption, in order to raise the livelihoods of the producers for sustainability of the cocoa economy of the region.

Adegoke said the success of the just concluded world cocoa conference, concerning the implementation of the EUDR policy and the willingness to adhere to new regulations has reinforced the commitment of stakeholders to change inimical practices hindering the sustainability of the global cocoa industry.

The CFAN President said aside the questions that demand an answer from the stakeholders, Brussels people, which mirrors the EU countries, have demonstrated their uncommon passion for the consumption of chocolate at every corner of their daily activities, saying who pays the piper dictate the tune.

“However, many questions are begging for answers like who pays for the cost of the compliance at the cocoa origin countries without necessarily over-burdening the producers that have always been at the receiving end of the value chain? What is the level of preparedness of other origin countries aside Cote d’Ivoire and Ghana that have always received the highest investment from sustainability programmes?

“What is the model of cooperation between the forestry department and the agriculture department of the cocoa origin countries vis-a-vis the implementation of the EUDR policy?…, what happens to the encroached conserved areas with large cocoa plantations after 2020, which contributes almost 30 per cent of the global cocoa supply if not more? How does a cocoa origin country strengthen the implementation of carbon credit in order for the producers to be encouraged in compliance?,” he asked rhetorically.

Recall that at the International Cocoa and Chocolate Forum (ICCF 2024 – Nigeria), held in both Abuja and Lagos, early this year, stakeholders had unanimously said there is lack of proper and creative funding to fully develop the opportunities within the industry.

They revealed that the buildup processing capacity in the country is about 200,000 metric tonnes (MT) to convert cocoa to butter, liquor and cake/powder, but the country is operating at about 30 per cent capacity because the cocoa industry and the domestic market are not properly structured in the manner that will attract the right investments to develop the market to compete with western market offerings.

The Founder of International Cocoa Diplomacy, Oba Dokun Thompson, identifies difficult environment, funding and labeling, among others as some of the many obstacles, hindering chocolate manufacturing in the country.

“Nigerians are yet to understand the value of cocoa consumption and that the primary and most popular consumption product of cocoa is chocolate.” According to him, the Eti-Oni Development Group’s Cocoa Renaissance Initiative is doing a lot to raise awareness about cocoa’s economic and health benefits. “Hence, the Nigerian Chocolate Group was formed by chocolate makers to assist these agencies in every aspect of chocolate making.

“I hope to see more local brands and products on store shelves. This will only be possible if more funding is made available for entrepreneurs to scale up or expand their operations.

“Yes, the chocolate industry is very young in Nigeria, but an appreciation of chocolate as a wealth creation product should not be readily dismissed either as a foreign product or nothing more than raw cocoa beans,” he added.