Cocoa production in Nigeria projected to rise by 10% over high prices – Report
Due to higher cocoa prices on the global market over the past year, Nigeria’s cocoa production is expected to rise by as much as 10%.
According to the AFEX 2024 wet season report, farmers are encouraged to increase their production this year by the high market prices for cocoa.
According to the research, cocoa seedling programs that were initiated in the last several years are already producing results and will help the cocoa harvest during that time.
“After several years of decline, cocoa production is expected to experience an upward trend this season,” it says. Increased global demand and supply difficulties in key producing nations have led to record high cocoa prices, which are the main driver of this rise.
A major contributing factor has also been the favorable weather in the country’s southwest, which is the main cocoa-producing region. We anticipate a 10% increase in cocoa production this year, with an approximate yield of 320,000 metric tons in 2024, due to the combined effects of these factors.
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The research also pointed down that Nigeria’s 2023 cocoa production exacerbated the world’s supply shortages from big producers like Ghana and Cote d’Ivoire.
According to the report, just roughly 3% of the cocoa farmers surveyed handled more than 5 hectares, while 76% of them were smallholders with less than 2 hectares under cultivation. Most of these farmers were in the 36–45 age range.
Prices of cocoa in 2024
Futures prices for cocoa have risen by more than 80% so far this year, and by another 10% since October, as the world’s top producer’s harvest season is severely disrupted by unfavorable weather.
This year, the price of cocoa has risen 130% on the global market, peaking at $9,900 a tonne. By the end of January, the spot price had increased from $4,297 to $4,841. Growth continued in February, peaking at $6,866 and closing at $6,443.
Prices rose to an astounding $9,828 by March. In April, the bullish trend continued, reaching a record high of $12,216. The price of cocoa is currently around $9,800, and forecasts suggest that it may rise even higher.
Due to higher cocoa prices, Nigeria’s cocoa profits increased by 279% in the first quarter of 2024. According to data from the National Bureau of Statistics (NBS), cocoa exports increased from N107.59 billion in 2023 to N408.66 billion in the first three months of this year.
The market has been unstable ever since, with supply concerns causing further volatility. Ivory Coast’s recent heavy rains have sparked new worries by interfering with transportation, drying procedures, and harvests, which has caused cocoa futures prices to rise once more.
