Cocoa farmers in Nigeria are expected to benefit from the recent surge in international cocoa prices, which reached a 46-year high on the Intercontinental Exchange in London. The current cocoa bean price stands at $3,124.15 per metric tonne, a 7.53% increase from last month and a significant 34.48% increase from one year ago.
In addition to the price rise, the Federal Government’s forex policy, which devalued the naira, means more income for cocoa farmers during the next harvest season. This comes as the International Cocoa Organisation (ICCO) forecasts a global deficit of 142,000 metric tons in cocoa supply.
The tight market for cocoa beans, mainly produced in Ivory Coast, Ghana, and Nigeria, has led to rising prices. However, the above-average rains in Ivory Coast have caused flooding in some cocoa fields, potentially impacting the main crop starting in October.
Despite this challenge, experts in the Nigerian cocoa value chain, including Dr. Sunday Agbeniyi from the Cocoa Research Institute of Nigeria (CRIN), see the rising cocoa prices as an opportunity for the local economy and cocoa farmers. He emphasizes the need to take advantage of the situation by boosting cocoa production through a robust approach, including government support and improving infrastructure in cocoa-producing areas.
As cocoa prices continue to soar, Nigeria has the chance to harness this positive development and capitalize on the growing demand for cocoa in the international market.