Cacao trees, native to the Amazon rainforest, thrive in hot, humid climates. Today, they’re cultivated in tropical regions across the globe, with Nigeria, Ivory Coast, and Ghana being major producers. Farmers meticulously care for these trees, nurturing them through the seasons until they yield pods containing precious cocoa beans.

In the late 1960s, Nigeria was the world’s leading cocoa producer with the oil boom and the shift of the nation’s focus from agriculture, the country now stands at fourth globally. Cocoa production faces several challenges that threaten its position and the livelihoods of millions.

Some of these challenges include:

• Low Yields: Aging trees, inadequate disease control, and poor farming practices lead to low cocoa yields, impacting farmer incomes and overall production.
• Poor Working Conditions: Workers often face inadequate wages and lack of access to basic safety equipment and healthcare. Workers remain vulnerable due to a lack of policies and welfare ethics
• Limited Processing and Value Addition: Most cocoa beans are exported raw, depriving Nigeria of the economic benefits associated with processing and value addition. Limited access to processing facilities and expertise further hinders progress.
• Environmental Degradation: Unsustainable practices like deforestation and overuse of pesticides threaten biodiversity and soil health, jeopardizing the long-term viability of cocoa production.

Producers also face several challenges in processing and export such as:

• Outdated Infrastructure and Technology: Lack of modern processing facilities and inefficient logistics hinder quality control, consistency, and competitiveness in the global market.
• Limited Market Access and Traceability: Fragmented supply chains and lack of transparency make it difficult for farmers to access premium markets and ensure fair pricing.
• Inconsistent Quality and Certifications: This is due to inadequate fermentation and drying processes which limits access to higher-value markets. Producers also lack certifications like Fairtrade and Rainforest Alliance.

Transforming Nigeria’s cocoa industry requires addressing each challenge at every stage of the value chain.

• Investing in Sustainable Farming Practices: Promoting disease-resistant cocoa varieties, training farmers in good agricultural practices, and encouraging agroforestry can significantly improve yields and soil health.
• Expanding Processing and Value Addition: Investing in modern processing facilities, encouraging public-private partnerships, and providing access to training and financing for local processors are key to capturing greater value within Nigeria.
• Promoting Environmental Sustainability: Supporting regenerative farming practices, reforestation initiatives, and responsible pesticide use can protect the environment and ensure long-term cocoa production viability.
• Improving Infrastructure and Technology: Modernizing infrastructure, investing in logistics, and adopting digital solutions for traceability can enhance efficiency and market access.
• Improving Quality and Certification: Implementing rigorous quality control measures, supporting farmer cooperatives in obtaining certifications like Fairtrade and Rainforest Alliance, and promoting direct trade relationships can enhance market competitiveness and access to premium prices.

Transforming the cocoa industry requires a collaborative effort from the government, the private sector, NGOs, and farmers. At FutuX, we empower farmers, by providing consultation and support services that ensure proper production, increase in productivity, and certification support for a better market.

By empowering farmers, investing in processing, and improving export competitiveness, Nigeria can unlock the full potential of its cocoa sector.