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| Agric Minister, chief Audu Ogbeh, Minister of State For industry and Trade, Aisha Abubakar and CEO NEPC, Mr, Segun Awolowo at the International Cocoa Summit exhibition. |
· *FG regrets set back
Stakeholders
in cocoa productivity have decided to move the industry forward by having a
central body similar to the Cocoa Board of olden days to govern, regulate and
serve as a body to guarantee loans for farmers, among other functions just as
the Federal Government (FG) expressed its regret for the neglect of the sub
sector that have been a strong engine power of the country in term of foreign
earning in the past. Also, Taraba state governor, Arc. Darius Dickson Ishaku
announced plans to reenact the semblance of the defunct Cocoa Board very soon.
The
stakeholders recalled that the present level of low production capacity of
cocoa in Nigeria was due to the abolition of the marketing board during former
Military President, Gen. Ibrahim Babagida saying the need to bring back a
modified body that would serve in the capacity of control and regulation
towards ensuring standard and growth rebirth is inevitable. This was one of the
high points of the recently concluded International Cocoa Summit held in Abuja.
A former executive director of Cocoa Research
Institute of Nigeria (CRIN), Prof Malachy Akoroda set the ball rolling by
challenging the stakeholders to take the bull by the horn and constitute a body
to take charge of the activities of the industry saying they should not expect
a government that rakes in just 0.7% of its total foreign exchange earnings
from cocoa to effectively make a change for the produce as he explained that
the proposed body should include players from the government and different
groups making up the stakeholders.
In what looks as affiliation with the above suggestion,
already, Governor Ishaku who was represented by the state’s commissioner for
commerce and industry, Alhaji Illyasu Ajibu said the task of setting up the
necessary mechanism had been given to the deputy governor of the state with
technical support coming from the state’s ministries of commerce and industry
and agriculture pointed the government is very passionate in the development of
the industry for economic creation in the state.
The stakeholders noted various challenges that
hinder the output of cocoa produced as 'inconsistency in government policies,
inadequate funding of Research and Development, absence of structured and
viable cocoa stakeholder groups, lack of synergy between Research institutions
and Farmers, problem of identifying the right sector players, lack of synergy
among the key regulatory and quality control agencies, stringent measures for
accessing finance- for players in the technical' industrial, infrastructure
deficit, low and inadequate capacity and technical know-how of the farmers,
lack of adequate incentives, lack Of awareness on the provision of Sanitary and
–Phyto-sanitory (SP) Measures. In addition to lack of appropriate tools to
adhere to SPS regulations, Short term
rather than long term loan with high interest rates; poor postharvest handling
and packaging, inadequate agricultural- extension 'services,; tariffs and
tariff escalation, operational inefficiency, land tenure system; 'ageing farms
and farmers, pest attack: and disease incidence, absence of political and
economic will and Subsidies not getting to the real, farmers among others, and
thereby called for immediate action to reverse the unfortunate trend.
President Muahammadu Buhari
however expressed regret over the
setback in the cocoa sector over the years, saying his administration would
work to re-position it along other non-oil commodities and promising that the summit was designed to be part of his administration’s
Agricultural Commodity Revolution with cocoa as one of the main drivers to
diversify through accelerated production and marketing drive.
President Buhari who was
represented by the agric minister, Chief Audu Ogbeh said it was time for the
cocoa industry to open up the Nigerian economy to local and foreign investors
while encouraging strategic partnerships necessary for resuscitation of the cocoa
sub-sector of our economy after suffering neglect as a result of over reliance
on crude oil, which led to decline in the country’s annual production from 420
metric tons in the 60s to 192,000 in 2015. The
president noted that the position of the country had dropped from being the 4th
global cocoa producing country to the 7th.
He said that the summit was initiated to reposition
the cocoa sub-sector to regain its lost glory and bring to the fore the
strategic importance of cocoa to our national economy in line with the economic
diversification policy of this Administration.
He urged the stakeholders present at the event to join hands with the Federal Government to improve the production and export base of our economy by increasing production, processing, packaging and marketing of our non-oil export commodities adding that stakeholders should support and key into government policy of promotion of non-oil export as an alternative source of revenue as he assured that the FG is committed to restoring the agricultural and industrial sector to its prime position before the discovery of crude oil.
Already, Governor Ishaku who was represented by the state’s commissioner for commerce and industry, Alhaji Illyasu Ajibu said the task of setting up the necessary mechanism had been given to the deputy governor of the state with technical support coming from the state’s ministries of commerce and industry and agriculture pointed the government is very passionate in the development of the industry for economic earnings in the state.
As Akoroda
gave the charge, the president of Federation of Agric Commodities Associations
of Nigeria, Dr Victor Iyama who felt strong against old marketing board being
of its role in creating poverty for the farmers why the officials are getting
fatter, also nodded in agreement and promised that something would be done in
that direction, soonest.
It will be recalled that from independence
until 1985 or thereabout, the Cocoa Board (constituted by government) held sway
in the industry. But due to series of complaints by farmers of ineptitude and
fraud by the board, and following the introduction of the Structural Adjustment
Programme (SAP) by the Babangida Administration, the board was dissolved. What
followed was a period of bliss for cocoa farmers and exporters because the
naira had been devalued and the large volume of naira flowing in encouraged all
comers to partake in the ensuing business. However, the bubble soon burst as
the rush encouraged people to try all sorts of tricks resulting in the
rejection of the commodity originating from Nigeria.
During the
summit, it became apparent that what Cote d’Ivoire did right was to liberalize
and still retain a central body to oversee cocoa affairs in terms of
regulation, development, price control, etc., while Nigeria, in the SAP years,
followed the recommendations of the economists to the letter by liberalizing
without regulating.
The first
paper at the summit was presented by the president of World Cocoa Producers
Organization, Mr. Toussaint N’Guessan. In the paper titled Cocoa supply and demand: prospects and challenges he canvassed the
adoption of crop rotation and integrated agriculture for cocoa farmers arguing
that this system would see to the challenge of lack of income while waiting for
cocoa gestation period to be over as well as ensure organic practices in cocoa
farming.
While
commenting on the paper, Mr. Sona Ebai noted that a value chain is as strong as
its weakest link adding that every link in the system should be strengthened
enough to make the system self-sustaining
arguing that “you don’t borrow to sustain subsidies.”He also called for
strong commodity associations saying that it makes a difference.
The
president, Cocoa Association of Nigeria and vice president World Cocoa
Producers Organization, Mr. Sayina Riman while commenting on the challenges
listed policy somersault was one huge problem; the challenges of data as the
sources of the data are unreliable; which makes it difficult to know who the
real farmers are; the farmers’ deficiency in requisite skills and the problem
of finances which he captured thus: Cocoa has a gestation period of three years
whereas bank loans are of short period of two years. He also noted that
although research is key to higher utilization and profitability in cocoa, yet
without funding, there is no research. The absence of extension services is
another issue, adding “you can’t look up to the research institute or public
officials for solutions to your problems.”
Managing
Director, Tuton Nigeria Limited, Mr. Vivian Onokwai was of the opinion that if
Nigeria was to exit the group of non-performers, she had to encourage farmers
by making farming lucrative; providing access to farms and improving the
process of data collection and put in place facilities for cocoa drying, for
example.
A former
Assistant Director/ Cocoa Desk Officer, Federal Ministry of Agriculture and
Rural Development (FMARD), Evangelist Isaiah Abalaka advised researchers to, in
the absence of extension services,
strategically locate their field trials so that farmers would observe
and gain from such trials; youths should be mobilize into cocoa farming in
addition to encouraging more farmers
into doing same.
Prof Akoroda
in his paper titled Sustainable cocoa
production said of the 50 cocoa producing countries, African countries
produce 70 percent and that of the quantity, Cote d’Ivoire and Ghana alone
produce 50 percent while Nigeria and other African countries produce 20
percent. While comparing the contribution of cocoa in Cote d’Ivoire, Ghana,
Cameroon and Nigeria under topics like Cocoa export as a % of total export earnings, while it was 32 in Cote d’Ivoire; 31 in Ghana
and10.2 in Cameroon, it was an abysmal 0.7 in Nigeria. Under % of imports covered by cocoa exports
earnings, whereas it was 40.2, 21.4, and 7.5 respectively in those
countries, it was a poor 1.27 in Nigeria. Also, under Cocoa export earning as a % of GDP while the figures were 13.3, 8.2
and 0.12 respectively for those countries, it was only 0.12 for Nigeria; also
under the sub heading, earnings from cocoa as % of farmers total income, while
Cote d’Ivoire and Ghana posted 80 and 90 respectively, Nigeria posted 60.
He said Nigeria must wake up
and do more towards the revival of the crop as only 15% of the estimated nine
million trees are producing, because “if you water cocoa, cocoa will water your
pocket.”
He counselled that Nigeria
should make jute bags available for better packaging of the commodity, noting
that under his watch at CRIN, eight new disease resistant varieties of the crop
were released and that the institute uses solar converters to dry the beans and
that it was successful.
The president of Cocoa
Processors Association of Nigeria(COPAN) and managing director of Cocoa
Products (Ile Oluji) Limited, Mr. Akin Olusuyi in a paper titled Cocoa processing in Nigeria: Challenges and
opportunities said although Africa led the pack in cocoa production, when
it came to processing, it only accounted for 20% of the global processing
market. Europe claims the lion share of the processing market with 40% with The
Netherlands leading the world in processing with 13% global grindings. Of the
remaining 60% processing market it is shared evenly between Africa, Asia and
the Americas. In Africa, only Cote d’Ivoire was visible in the processing map
with Nigeria being nowhere to be found.
Why has Cote d’Ivoire
succeeded in its cocoa economy? Olusuyi provided an insight: (1) Establishment
of stabilization fund to support cocoa production as early as 1978; (2)
Well-equipped and guarded warehouses to provide storage for farmers and
confidence for buyers for future sales; (3) Liberalized cocoa market aided by
government policy; (4) Loan scheme to assist cocoa farmers; (5) Centralised
body to ensure the management, regulation, development and price controls of
cocoa.
He said that presently
Nigeria has 18 processing plants while only ten out of the lot engage in some
processing whereas only five of the ten, namely Stanmark Cocoa Processing
Company Limited, Ondo Town; Cocoa Products (Ile Oluji) Limited, Ile Oluji; Coop
Cocoa Products/Olam Nigeria, Akure;Alpha Cocoa Processing Company Limited,
Akure and Plantation Industries Limited, Akure, all located in Ondo state, are
really alive and producing at 30 % installed capacity. All the five process
60,000 tons out of the over 200,000 tons produced nationally.
On the challenges faced by
the processors,Olusuyi listed the scarcity of feedstock (raw cocoa) for feeding
the processing factories as there is competition **between the exporters of the
raw beans and the processors for the little produced in the country, and that
the exporters usually have the upper hand because they have the means; lack of
capital; unreliable infrastructure; undeveloped local market for cocoa
products, i.e, people regard chocolate as luxury food;
Lack of policy guideline for
the development of cocoa value chain; non-signing of European Union /EPA
agreement and lack of political will.
While canvassing for
government support, he said the total value of global export of cocoa is $10
billion whereas the total value of cocoa derived products is over $200 billion,
and then called for strategic actions to correct the inanities and strengthen
the system; building and strengthening of the existing institutions; policy
framework; high tariff on imported cocoa products; availability of finance;
incentives to encourage value addition; integration and collaboration all
players in the value chain; development of blueprint for cocoa
industrialization; and technical and technological support through research and
development, education and information dissemination.
The chief executive officer
of Titan Project Nigeria Limited, Mr. Chris Agara pleaded that nobody should be
discouraged from processing, adding that his company’s 30, 000 ton capacity
factory construction was at an advanced stage and that it should be ready for
commissioning in the next six months.
He explained that three
companies from Europe would be processing cocoa for local consumption and
export, in the facility. And that the quality control would meet both local and
international standards.
The
president of International Cocoa Organization (ICCO) Dr Jean-Marc Anga, while
delivering his paper titled: Global
market for cocoa products got angry and uttered: “Nigeria, great country
with great potential but not helping itself, not helping Africa.”He suggested
that Nigeria could do without the export market noting that what she needed to
do was to rearrange the system such that she could produce more and also
consume 50 % of its produce. The way things are right now, with just 0.4
consumption rate Nigeria should be afraid and the fear gingers it to take
action! He said Cote d’Ivoire became what it is over a period of 20 years. He
threw a challenge of Nigeria coming to the 2nd position within the
next 3-5 years.
In order to
solve the problems of declining cocoa prices, Anga canvassed for
putting in place of National Cocoa Plan;
increased cocoa processing in origin countries; increased consumption in
origin and emerging countries; and diversification or integrated farming.
However,
the stakeholders in a communiqué issued and read by Director of Federal
Ministry of Trade and Investment, Mrs. Modupe Opeewe noted
various challenges that hinder the output of cocoa produced which: include
'inconsistency in government policies, inadequate' funding of Research and
Development, absence of structured and viable cocoa stakeholder groups, lack of
synergy between Research institutions and Farmers, problem of identifying the
right sector players, lack of synergy among, the key regulatory and quality
control agencies, stringent measures for accessing finance- for players in the
technical' industrial, infrastructure deficit, low and inadequate Capacity and
technical' know-how of the farmers, lack of adequate incentives, lack Of
awareness, of the provision of Sanitary and Phytosanitary (SP) Measures. Also
lack of long term loan with high interest rates for the short ones; poor
postharvest handling and packaging, inadequate agricultural- extension
services; tariffs and tariff escalation, operational inefficiency, land tenure
system; ageing farms and farmers, pest attack and disease incidence, absence of
political and economic will and subsidies not getting to the real, farmers
among others.
Consequent upon this, the following
recommendations were made:
·
Establish a Central Coordination unit
for, cocoa development;
· Make cocoa business lucrative by
'providing., infrastructure (power, rural road network, water and linkage to
inputs source, etc);
·
Encourage
innovation and develop appropriate adaptable technology; Provide high yield
seedlings;
·
Strengthen
incentives and subsidies to stakeholders in' the cocoa industry;
·
Create synergy
and partnerships between- the, R&D.. Institutions, support institutions,
policy makers and 'the organized. Private 'sector players;
·
Produce a viable
National Cocoa Development Plan based on sound, knowledge of local cocoa
resources;
·
Ensure
revitalization of moribund cocoa' processing factories;
·
Encourage
domestic consumption of cocoa and cocoa products re- introducing cocoa drinks
in the school, feeding' programmes of the ,' government;
·
Declare cocoa, as
a national drink;
·
Implement the
cocoa development action planning diversification policy of the government of
Nigeria;
·
Strengthen and
fund Research and Development
·
Establish Cocoa
development fund;
·
Organize
structured and viable cocoa stakeholder 'groups for, easy access to finance.
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