Due to smuggling Nigeria earned a paltry N2.64 trillion ($7.24 billion) from cocoa exports in the last five years.
Fungi diseases, which resulted to low production, also contributed to the low exports. Smugglers traffic the beans to Ivory Coast port to earn more money because of the quality of Nigerian cocoa. Nigerian cocoa beans grade 1 is sold at $2,782 per ton. Ivory Coast and Ghana cocoa are sold at $2,917 and $2,832 respectively.
Already, the two neighbouring countries – Ivory coast and Ghana – which produce roughly 60 per cent of world’s cocoa, have resolved to harmonize their marketing systems, strategies and coordinate their beans sales and price for the new season.
Apart from Ivory Coast port, the Chairman of Nigerian Port consultative Forum, Otunba Kunle Folarin, noted that most of the cocoa beans were also smuggled to Benin Republic where there was no export prohibition.
He explained that Nigerians packed loads of cocoa to Benin port, thereby boosting that country’s export trade. Folarin said: “Our cargo is promoting their prominence outside the world, making them feel bigger than us, whereas it is Nigerians cargoes.”
Between 2014 and 2018, the country exported 1.15 million tons of cocoa beans to Europe and United States. In 2014 season, Nigeria exported 248,000 tons; 2015 195,000 tons; 2016, 200,000 tons; 2017, 245,000 tons and 2018, 260,000 tons. This season, total output may reach between 250,000 tons and 260,000 tons between October and February.
Currently, the price of the commodity is $3,303.10 at the global market. Despite smuggling and weak yield last year, Nigerian cocoa exports to some Europe and Asia was N86.8 billion ($241.3 million). Netherlands, Belgium and Germany received the bulk of the beans because of high demand for chocolate.
Export market data revealed that The Netherlands received $107.9 million worth of cocoa from the country.
Also, the country exported $20.4 million worth of the beans to Germany; Belgium, $13.5 million; France, $7.2 million and Estonia, $15.8 million.
Others are Malaysia, $23.5 million; Indonesia, $23.8 million; United States, $11.3 million and Canada, $8.9 million.
Already, Statistica Portal records revealed that cocoa butter prices as quoted by the Cocoa Merchants’ Association of America (CMAA) went up to $7,728 per ton in 2018 from the $4,667 per ton recorded in 2017, as demand for chocolate stayed strong in the global market, leading to increase in the price of the beans.
Last year, domestic price of the beans increased in Nigeria by 21 per cent. And output dwindled by seven per cent. Price per metric ton rose to N821,520 ($2,282.36) from between N580,000 and N600,000 in the year. In January and October, 2018, cocoa price surged to 43 per cent because of dryness and fungi plaguing the crops in West Africa, which accounts for over two-thirds of global supplies.
