News in brief:
– Cocoa prices rose by 132% in 2024 due to global supply deficits, benefiting Nigerian farmers and exporters.
– The country earned ₦1.46 trillion from cocoa exports, with farmers boosting yields and tapping into record profits.
Cocoa prices experienced a dramatic surge in 2024, climbing 132% to hit a record high of $10,353 per ton by December, making it the year’s best-performing commodity. This meteoric rise outpaced even Bitcoin, according to data from the International Cocoa Association (ICCO).
The year-long rally saw cocoa prices soar from an average of $4,453 per ton in January to a peak of $12,000 per ton in April before settling at $10,353 per ton in December, reflecting a 14% decline from the April high.
Supply deficits fuel price surge and economic gains
Experts attribute the price hike to the worst supply deficits in decades, with Ivory Coast and Ghana—the world’s leading cocoa producers—reporting significant disruptions. These challenges rattled the global supply chain, pushing up prices.
Sayina Riman, a cocoa farmer in Ikom, Cross River State, shared his story of renewed efforts on his plantation. “I paid more attention to my cocoa farm in 2024 than ever before. I pruned the undergrowth and applied liquid fertiliser, something I had never done previously,” Riman said.
The cocoa windfall motivated Nigerian farmers to revive old plantations and boost yields. Adeola Adegoke, President of the Cocoa Farmers Association of Nigeria, highlighted how farmers made significant profits.
“If governments and private sector players can remain focused on increasing and decentralising cocoa production, Nigeria could produce between 500,000 and 600,000 metric tons annually,” he said.
Cocoa played a pivotal role in Nigeria’s agricultural exports in 2024, generating ₦1.46 trillion in nine months. Data from the National Bureau of Statistics (NBS) revealed that cocoa accounted for 7.12% of total agricultural exports, making it the best-performing crop of the year. Key export destinations included the Netherlands, Malaysia, Belgium, and Germany.
Exporters also benefited from the price surge by processing cocoa beans for higher returns. Francis Okeleke, managing director of Kenfrancis Farms, said that they earned much more exporting processed cocoa and sesame seeds to Europe in 2024 than in the previous two years.
Globally, Nigeria maintained its position as the fourth-largest cocoa producer, with an output of 280,000 metric tons in the 2022–2023 season. It is also ranked as the third-largest exporter after Ivory Coast and Ghana.
The unprecedented surge in cocoa prices underscores the commodity’s potential to drive economic growth. With renewed focus and investment, Nigeria’s cocoa industry could further solidify its position as a global powerhouse.
