‘Africa as producers of 75% of world’s cocoa supply makes only 5% profit’
THE global cocoa industry is said to be worth $200billion annually while West Africa that produces 75 percent of the world’s cocoa supply makes less than $10billion from it.
Pique by this, HRM Oba Dokun Thompson Gureje IV, Oloni of Eti-Oni, Osun state Nigeria and the Founder, International Cocoa Diplomacy, has said that there is a lot of potentials to increase that value because cocoa as a product like coffee though produced in Africa, is yet to be well understood, appreciated and consumed in Africa.
He stated that the value of most of these products is in its consumption even at the farm gate and not just in export as raw materials.
Oba Thompson stated this while speaking at the Nigerian British Chamber Of Commerce (NBBC) 2023 Trade Mission to the UK, held in London.
“I am honoured to be the Faculty Head of the Agric Sector and delighted to be part of this Trade Mission by the Nigerian British Chamber of Commerce which is coming at a time that there is a new Nigerian government, and I am confident that the new administration is not going to rest on Nigeria just being the largest economy in Africa, but work to ensure Nigeria becomes the economic power house and business hub for Africa that it really should be.
“We all know Nigeria is the biggest market on the continent and opportunities abound with the Agriculture sector providing perhaps the largest and untapped potential in the country due to a number of reasons and none of those reasons have anything to do with lack of opportunities, profitability or sustainability.
“The Nigerian market is a dynamic one that requires innovation and clear understanding of the people,” he said.
Oba Thompson stated that Nigeria’s agriculture sector offers incredible opportunities in production, processing and manufacturing and that Nigeria has a land mass of 923,768 sq.km and 38.43 percent of that was reported as arable land in 2020 according to the World Bank collection of development indicators.
“We also have good weather and an excellent climate condition for increased production output and the manpower to make it possible considering that in 2020, the median age of the Nigerian population was put at 16.9 years.
He pointed out that there are certain parts of the Northern region of the country where cocoa grows, that the farmers don’t have people to buy their cocoa hence lose interest.
“That alone is an opportunity. I was once approached by a Chinese company requesting cocoa and I saw that as a chance to point them in the direction of the Northern farmers. This is not an isolated case but there are several of such stories.
“Whether we talk about Pastoral or Crop Farming, the potentials are unbelievable.
“Today, we do not produce enough chicken and have to supplement with imports. Cattle or dairy farming remain untapped despite the huge potentials and investors are encouraged to establish modern ranches for this purpose.
“The ease of doing business in Nigeria has improved a lot and what some may find as a challenge like land tenure issues because agriculture always requires huge parcels of land is not as complicated as it may seem, once the local tenancy is properly understood and well managed with consent from the traditional institutions who are the primary land owners.
Speaking further he said between 2015 and now, the UK Government created the Department for International Trade on July 14, 2016 dissolved it February 7, 2023 and established the Department for Business and Trade same day.
“For me, it confirms that while the names of the departments may change from time to time, one thing is constant, that is the need for increased trade and business with willing partners and Nigeria is also in need of investment and technical partners.
“So today, I am also saying the same that we, the Nigerian British Chamber of Commerce know what is best and we will point you in the right direction to achieve the much needed partnership for shared value purposes,” he added.
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