Daily Champion (Lagos)
Sina Fadare
18 October 2009
From Akure, the capital city of Ondo state, to the hilly town of Idanre, passing through Owena village to the thickly populated Ondo township, back to Ile-Oluji with over 30 villages, this reporter, for a week, was inside cocoa plantation of various dimensions, exploring the wonderful harvest of cocoa pods. This cash crop nick-named in Mexico as "food for the gods" is virtually in every village visited.
Farmers trooped out as early as 6am to their cocoa farms to process the wonderful crop. On these routes, cocoa seeds are seen on the roads, spread on tarpauline and in front of houses, especially on the pavement in virtually everywhere visited. They will not return to their huts until dawn.
Like all the other farmers in the rest 13 states that produce cocoa, their problems are similar, while their agonies are the same; from the problem of good yield, which translates to naira notes, to lack of funds for large- scale farming and to inability of accessing the much-orchestrated soft loans to farmers by the government. Yet they are in the thick jungle producing what they know best with poor access roads to get their produce to the desired market, where they hardly dictate the market price.
Ondo state, which accounts for about 40 per cent of the total production of cocoa in the country, came in contact with the seed shortly after it was introduced to the country in 1874 by Chief Squiss Ibannigo in Opobo,in the present Rivers state. Ever since then, Ondo state has not looked back as the highest producer and exporter of the commodity to the outside world.
Buttressing this fact the state's deputy governor, Alhaji Ali Olanusi who incidentally is the chairman State Cocoa Development Committee (SCDC) noted that during the peak period of cocoa production in the state.( between 1971-1972), when Nigeria produced 307,000 metric tonnes, Ondo accounted for about 170,000 metric tonnes.
According to him, in order to sustain the tempo, the state government recently gave out 1.1million cocoa seedlings to the farmers at highly subsidised rate, adding that this gesture was not only to encourage young farmers but to boost the future production of cocoa. "Our goal is to improve marketing strategy that will ensure better and stable prices for our farmers. We are instituting a price support programme for farmer's empowerment of quality input as part of the overall farmers empowerment programme"he said
In the early 1960s, cocoa was a symbol of pride in the then Western Region, a source of revenue and the backbone of the economy. But in the 1970s, when oil came to the scene, agricultural products, like cocoa in the West, groundnut pyramid in the North and palmoil and rubber plantation in the East and Mid-West, respectively went into oblivion. Since then, all efforts by subsequent governments to re-enact the lost glory has been futile. Until 1999, cocoa, like any other allied agricultural produce, did not receive governments adequate patronage, neither was any attempt made to tap its immense potentials for local and international consumption.
Available research shows that Nigeria is the third largest producer of the crop in Africa after Ghana and Ivory Coast with about 6 billion dollars coming to the region annually through cocoa. Out of this amount, Nigeria could only get between 550-600 million dollars annually, with a cropping capacity of about 350 kilogrammes per hectare. The sad story is that in the late 1970s, Malaysia came to Nigeria to pick few samples of cocoa seeds and palm kernel, today they are among of the suppliers of the commodities to the international market. Currently, Malaysia is cropping about 1.5 tonnes per hectare of cocoa.
Against this backdrop, former President Olusegun Obasanjo took a giant step in 1999 to resuscitate cocoa export with a holistic approach. According to the deputy governor of Osun state, Erelu Olusola Obada who doubles as the chairman, Presidential Sub-committee on Increased Local Consumption of Cocoa, the committee is working round the clock to make sure that Nigeria returns to its lost glory in cocoa production. She said that since the introduction of Cocoa re-birth in 1999,"our cocoa production has increased from 170.000 tonnes in 1999 to about 300,000 tonnes in 2007, with an income of more than 500 million dollars.
According to her, "thousands of hybrid cocoa seedlings of an improved variety had reached gestation to add value to the cocoa chain." The three years hybrid seedlings planted few years ago, has started to gestate. This will increase the annual production to around 760,000 tonnes annually by the end of 2009 harvesting season. She pointed out that a time like this when the economic meltdown reality has dawned on us as a country; we have to look inward in order to meet the daunting challenges.
Since 2004 some giant strides, with success had been recorded. More people are embracing cocoa production. Nigeria should embrace cocoa production and consumption because a lot of benefits would be derived from this,"
She noted that government would go all out to encourage the production and consumption of cocoa in order to fault the fixing of prices by the buyer.Obada lamented that the buyers who are mainly the European countries fix low prices for exported cocoa bean and make exportation of processed cocoa to companies difficult because they want to protect their firms.
Since the birth of National Cocoa Development Commmitte(NCDC) government has taken a giant step not only to increase the production of cocoa, but the encouragement of its local consumption. During the last 5th edition of Cocoa Day Celebration in Umuahia Abia state, the federal government unfolded a roadmap for cocoa development structure into short term (2009-2013) and long term (2014-2018) in order to address the value-chain of cocoa production, processing, marketing, research and development as well as increase the local consumption.
According to the Federal Government, the roadmap is expected to re-position the cocoa sector as a viable competitive sector globally.
President Umar Musa Yar;Adua explained that "the critical role of cash crops such as cocoa, which is at present the largest non-oil foreign exchange earner for the country in contributing to our GDP is being given serious attention."
Speaking in the same vein, the Agriculture and Water Resources Minister, Abba Ruma said his ministry would leave no stone unturned in repositioning cocoa business to take the pivotal role in the generation of foreign exchange earners. He assured that cocoa will take advantage of #200billion federal government approved fund for commercial farming. He explained "part of the money would be used to bail out cocoa, the largest non-oil foreign exchange earner. Cocoa farmers in the country are fast ageing We need to have replacement for our fathers by putting some incentives to attract younger generation to take over so as to inject new ideas to get the best cocoa quality in Nigeria" He therefore challenged the youths to see cocoa as a crop not only for the present but for the future.
However the Executive Secretary of Cocoa Producers Alliance, Ambassador Hope Sona Ebai, explained that this is not the time to make political promises or speak grammar, rather it is a time for a sober reflection on how to practically harness all our potentials together in order to get the best out of the prevailing circumstances. He pointed out that cocoa is the major ingredient in chocolate industry, with annual revenue of about $600billion.
Mr. Paul Manyo of the International Cocoa and Coffee organization (ICCO) shared Ebai's sentiment that despite the fact that Nigeria cocoa flavour is adjudged one of the best in the world, farmers who are the producers are earning little. He lamented that Nigerian Cocoa is sold at a ridiculous price of 2,500 dollars per tonne, while those of the Latin American countries sell for 6,000 dollars.
Manyo therefore urged the Federal Government to partner with the Cocoa Association of Nigeria (CAN), the Cocoa Producers Alliance (COPAL), Cocoa exporters and International Cocoa Organisation (ICCO) curently headed by a Nigerian to find a lasting solution to European exploitation.
Though stakeholders and majority of the farmers spoken to on the field attested to the fact that government's intervention has positively affected the fortunes of cocoa as a crop, they however regretted the poor price phenomenon which is extremely difficult for farmers to control, and the inability of cocoa farmers to access the orchestrated soft loans facilities purported to have been given to them.
Mr. Ireola Adejuwon, a cocoa farmer of about 35years of experience at Owena village said that despite all the laudable government's programmes, farmers still earn little compared with the huge amount of money that cocoa is sold at the international market. He pointed out that cocoa is the only crop that does not follow the theory of supply and demand in the market.
"It is in the production of cocoa that a producer does not determine how much he wants to sell his crop. Farmers cannot boast or insist on price because they cannot consume it. The issue of price is a big problem which only government can assist so that farmers can equally earn fat revenue from their product," he explained.
But Mr. Robo Aduze, a consultant on cocoa and chief executive of Precious Pearls Communication, faulted Adejuwon's postulation that government should control the price mechanism of cocoa products. To him, it is difficult for government to dabble into the issue of price fixing because it is an open market. Again he said that, cocoa is an international crop that the world market is the determinant factor in price fixing."
Not that alone, most of these cocoa agencies, in conjunction with the stakeholders, give incentives and cash to farmers to assist them on the farm, therefore such farmers hold it as a bond to sell their produce to such organisations. Some of them even go the extra mile to train these farmers and assist them in procurement of chemicals for their crop.This is the dillemma,"he noted.
Aduze however said that the critical area where government can come in is that they should embark on enlightenment campaign to attract investors in cocoa processing locally. This according to him, will increase the consumption of cocoa beans and at the same time offer employment opportunities to teeming Nigerian youths who are roaming the streets. The consultant who lamented that Nigeria is consuming less than five percent of its total production said that if about 50 per cent could be processed locally, processing industries will spring up for production of cocoa butter, cocoa cake, cocoa wine, cocoa bread, cocoa beverages and chocolates. These ventures, if well explored, will give the farmers the opportunity to sell to the highest bidder and have the liberty to sell at convenient and reasonable prices.
The widely traveled cocoa expert equally canvassed for a joint cooperative movement between the major states that produce cocoa namely Ondo, Osun, Oyo, Ogun, Abia, Adamawa, Akwa Ibon, Cross River, Ekiti, Delta, Edo, Kogi, Kwara, and Taraba States. According to him, like what operates in Canada, they would be able to feed the home industries with needed raw materials and would be able to woo big time investors like multi-nationals companies into the business.
"Ghana has gone beyond the production of intermediate products to producing chocolates and cocoa beans for local consumption and export, thus manipulating cocoa prices to her benefits. Nigeria can do better, if all hands are on deck" he asserted.
Similarly, the Executive Director of Cocoa Reseach Institute of Nigeria (CRIN), Profesor Gerald Iremiren, said that if cocoa beans are more consumed locally,farmers will earn more money and there will be varieties of job opportunity for Nigerians graduates who are trooping out of the university in droves.
CRIN, according to him, has developed varieties of cocoa products, including cocoa cream, liquor, bread, cake and buscuits that could be marketed. He, however, lamented that the Institute is finding it difficult to convince investors to acquire patent rights for most of the products.
"We make chocolates in CRIN. We have been on it for years. We even have thermo-resistant chocolates.We are trying to find a way to commercialise it"he added
The university don pointed out that if government can go all out to sensitize the public on the need to embark on these laudable and money -spinning enterprise, it will go a long way to assisting government in employment generation.
If cocoa produced in Nigeria is one of the three most- preferred flavour worldwide with a wide range of uses and consumption enhanced by the recent findings on health and nutritional benefit, why the lukewarm attitude on the part of government to explore this avenue, especially at a period like this when the country is experiencing economic meltdown? Mr. Adenowuro Toba a desk officer on cocoa at the Ministry of Agriculture, Ondo state, provides antidotes to this poser. To him, since 1999, government of producing states have been working round the clock to make sure that more of the cocoa beans are consumed locally. This is the only way to raise farmers earnings and an ample opportunity to create job openings.
Toba however noted that government should embark on enlightenment campaign on the need for public private partnership (PPP) to collaborate with the stakeholders and the government and make sure that more of cocoa beans are consumed locally. He said that with the government ready to release a whopping #400million life line to cocoa farmers, all the stakeholders could manage and make success of this.
The agricultural officer said that the current cocoa farmers are well trained and have been grouped into various co-operative societies especially in Ondo state where it will be easy for them to access any loan given."We have learned our lesson from the past where loans are given to the farmers without adequate documentations. Now we know which of the cooperative they are operating, the chief in their village who could identified them and his bank account. Loan given by government is no longer a national cake but a palliative that must be returned.' he explained
Toba lamented that the processing factories in Nigeria are grossly inadequate to take care of the country's population."We have only five processing factories in Nigeria, three in Ondo state and two others in Lagos.These factories are short from what the country needed in order to create employment for our youths. If we harnessed these potentials, our farmers will earn more money, indusries will spring up and more foreign currency would be generated." he added
However the General Manager of OLAM, one of the largest companies in the country in cocoa usage, Mr Moorthy Satiya, identified the low quality of cocoa beans and high cost of production as contributing to the inappropriate pricing of Nigeria's cocoa beans outside the shores. He recalled how Nigeria loses about $5,200 on each tonne sold at the international market, adding that other African countries like Ghana and Ivory Coast are not similarly affected because of the high quality of their production.
To solve this problem, he suggested that cocoa farmers should be continuously educated on the need to adhere to the best practice and urged the government to include the private sector in effort at improving production. OLAM that has been operating in Nigeria in the last 22years according to Satiya has trained over 5,000 farmers on the best agricultural practice to enhance capacity. He said it also established 120 demonstration farms in Ondo, Ekiti, and Osun to teach cocoa farmers the best practice in cultivating, harvesting and packaging cocoa.In addition 4million cocoa seedlings are donated yearly to farmers in cocoa- producing states freely.
But in his own view, Mr. Afolabi (a.k.a doxology), an exporter of cocoa in the last 25 years, disagreed with Satiya in terms of the quality of cocoa produced in Nigeria. According to him, cocoa from the country is being short-changed outside the shore of the country because 'we are virtually exporting about 96 per cent of our total production. "This makes it possible for them to determine the price, whereas in Ghana, cocoa beans are turned into cocoa butter before it is exported, by so doing more bargaining are done and more foreign currency earned."
The Managing Director and Chief Executive Officer of Dox Afod Holding Commodities, said that if about 50 per cent of the production is consumed in the country, aside the fact that it will create employment opportunities, farmers will determine the price to sell their raw cocoa beans and availability of varieties of buyers will jack up the price.
He pointed out that with the various palliative measures from government directly to the farmers, the country needs urgently private investors who will go into processing industries which at the long run will expand the economy.
Corroborating the view of Afolabi, Chief Adelani Lejoka, a big- time cocoa farmer, said that all over the world and among countries producing cocoa, Nigeria cocoa beans is one of the best. To him, if all the money bags who siphone Nigeria's money outside the country can invest in cocoa industry, all this cry over unemployment in the country will be a thing of the past.
"I have traveled far and near in the business of cocoa, in the last 30years, Malasyia, Brazil, Canada,USA and many others, there is no place our cocoa is not given grade A attention. We need to consume greater percentage of what we produced so as to enlarge the market. This will assist the farmers who are doing all the productions without adequate and corresponding revenue in return."
Looking into the future of cocoa business, Osun state deputy governor Obada, whose committee had been saddled with the responsibility of finding ways on how greater percentage of cocoa beans produced in the country could be consumed locally. noted that if Nigerians are aware of the immense health benefit of cocoa powder, our total production, which is less priced outside the country would be consumed locally."
A recent finding reveals that cocoa is the best antioxidant; it is good in combating free radicals that you find in diseases like diabetics, heart problems like hypertension. If cocoa powder is taken everyday without milk, it has good curative and preventive properties" she explained.
To Dr Akinwale Ojo, the executive secretary, Cocoa Association of Nigeria, cocoa is a miracle seed that recent research has proven that it prevents heart diseases and diabetics, boosts libido and brain power, rights fatigue, arrests breast cancer and persistence coughs.
He explained that a cup of pure cocoa powder constantly taken everyday undiluted without anything is a sure way of long life span. "Cocoa is also said to be the highest source of magnesium, a vital mineral for human health. It is not surprising why Mexicans from whom cocoa is said to originate, call it food for the gods"
Perhaps it was because of its health benefits that the federal government recently incorporated cocoa-based drinks into the home- Grown School Feeding Programme. This policy was adopted by some of the producing states. Obada gave credence to this. "Here in Osun, we have introduced free cocoa drink to our children in pre-primary and primaries one and two. We give them free cocoa drink so as to imbibe in them the culture of taking cocoa right from an early age." she enthused
Beside the traditional uses in chocolate manufacturing and confectionery, cocoa butter is also used in the manufacturing of tobacco, soap and cosmetics, said Dr. Victor Iyama, president of CAN. He pointed out that cocoa seed is also a folk remedy for burns, cough, dry lips, fever, malaria, rheumatism, snake bite and wounds." Cocoa consuming nations of Western Europe are 'rushing' it because of its health benefits and not for the fun of it. Look at their life span, cocoa has contributed a lot to it. Research has shown it, and we have to let our people know these things," he said
If the benefits of cocoa powder are so enormous to the extent that researcher are affirmative of its nutritional and domestic values, why are we dragging our feet as a nation to go all out for sizable consumption of this 'miracle' seed? Aduze who had conducted a lot of researches on cocoa beans said that it is not too late for the country to list her name in the committee of cocoa consumption if the governments continue in the way it is going."
All what it requires to be a good consuming nation is to embark on aggressive enlightenment campaign that will attract Nigerians to the enormous advantages of taking a cup of raw cocoa powder everyday. Let the slogan.' take cocoa powder and keep away from doctor ' be our watchword. With time we will definitely get there" he assured.
Meanwhile, available information indicate that the industrial sector had been on comatose on account of poor operating environment. In fact, the organised private sector (OPS) which included the manufacturers Association of Nigeria had recently noted that the failure of government to address the lingering power crisis in the country, has remained the major bane of the economy.
Economy watchers also argue that cottage industries that can process cocoa into other uses would only spring up when energy challenges, policy summersaults, multiple taxation and other official bottlenecks that made investing and manufacturing in the economy an unimaginable risk. And as long as those challenges remained unaddressed, the unemployed and the industrial expert which could added to the country's gross domestic product, reduce unemployment in the economy and effectively check growing mass poverty would remain a mirage, and a mere dream.
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Development of cocoa in Nigeria should be pursued from all angles and they have to be done together.Production, Processing, Packaging, Marketing and Consumption. If one is done without the others it will have a skewed effect with the others affecting its growth.
Increase in local consumption will encourage all the other functions by creating additional market and therefore higher demand and of course better pricing for the product. It will create a demand pull on production and processing. govenment should therefore embark on sustained vigorous campaign on local consumption of cocoa.
Furthermore, cooperative system should be resuscitated and vigorously encouraged for the producers to take advantage of collective bargaining in terms of inputs delivery, market sourcing and pricing.
The Federal govenment should include cocoa in the selected crops of the N200b Commercial Farming Credit Scheme. This will make credit available to the sector especially in plantation establishment and processing.