Nigeria embarks on a ten-year cocoa plan
Nigeria embarks on a ten-year cocoa plan
Cocoa is one of the diversification products of the Nigerian economy. A ten-year plan is being drawn up with the aim of developing the important national market via schools. Investors are already involved.
«For the first time, Nigeria has developed a ten-year cocoa plan that has already been endorsed by the International Cocoa Organization (ICCO) as part of the Global Cocoa Agenda and is expected to be officially launched this year by the head of State Muhammadu Buhari», announced the president of the Cocoa Association of Nigeria, Sayina Riman, at the World Conference on Cocoa held in Berlin in late April. «At the same time, we are running a program to promote consumption.»
This 10-year program, approved by both the public and private sector, provides a calendar of actions to be conducted each year, as well as an annual assessment of the operations carried out or not and the objectives. «Its budget is important and will be financed by the international community, the government, the private sector and all those who wish to contribute,» says to CommodAfrica the manager, without however wanting to specify the amount since the Plan is not yet finalized. That said, he points out, since it is the cocoa sector which, among other things, financed the development of the oil sector in the 1970s, the latter should participate in the revival of cocoa, possibly as 0.5% of the price per barrel.
250 gr of cocoa per day
The recent crisis in the cocoa market, with a vertiginous drop in world prices for 18 months, does not seem to frighten Nigeria. «Our goal is not to produce for the international market,» says Sayina Riman, who proceeds with a quick calculation: «Our population is about 200 million people and if only 20% of this population consumes as little as 250 grams of cocoa a month, not a day, not a week, but a month, we will use up more than 50% of our current production to cover our domestic market.»
But is is difficult to know for sure how much cocoa is produced in Nigeria. According to Sayina Riman, it would be 290,000 tonnes (t) this 2017/18 season, with an expected intermediate crop increasing 15% from last year, when the drought had heavily impacted the orchards. However, the ICCO estimates the harvest at 225,000 t. Coca in Nigeria also encounters problems of quality: there would be up to 140 beans per 100 gr during the last main season, reports Reuters, while a quality cocoa normally has 100 beans per 100 gr. By comparison, the Cocoa-Coffee Council (CCC) in Côte d’Ivoire gives a tolerance of up to 105 beans per 100 gr.
@La Mandarine, Bertrand Boissimon
A glass of chocolate for children
To develop local consumption, the Nigerian authorities are targeting schools to develop very early, among the youngest children, the taste of cocoa and chocolate. Ghana, Cameroon and Ivory Coast are doing alike. «Our approach is not to target the population aged 15 and over, we want to touch the little ones and cocoa is a daily drink in public and private pensions and schools.» Cocoa is to be included in Nigeria’s Food Program, he said.
Moreover, with the return of economic growth in mid-2017 and especially this year, demand for chocolate and confectionery has resumed its flight in Nigeria. Mars would have benefited the most, with a market share of 39% last year, according to Euromonitor, taking advantage of the popularity of its brands Mars, Snickers, Bounty, Twix, etc. The analyst estimates annual growth of the national market at 5%, boosted by a rise in the number of expatriates, an increase in the middle class and the development of modern shopping centers.
As for investors, «We will create a sustainable and attractive cocoa market for companies like ‘Dangotes’ to want to invest in it immediately.» Olam has already expressed interest in the cocoa program, according to Sayina Riman. It should be noted that in addition to the bean trade, the Asian giant already has a processing unit in Akure, which employs around 500 employees. For its part, Nestlé supplies 80% of its cocoa powder needs locally, reported Business Day at the end of May.
