Cocoa; Investment Facts

INTRODUCTION

 
Cocoa is the second major non-oil foreign exchange earner in Nigeria. Cocoa is the leading agricultural export of the country and Nigeria is currently the world’s fourth largest producer of Cocoa.

SOURCING

 
Cocoa is produced mainly in 14 states namely; Ondo,Cross River, Oyo, Osun, Ekiti, Ogun, Edo, Kogi, Akwa Ibom, Delta, Abia, Kwara, Ebonyi and Rivers.

PRODUCTION STATISTICS

 
Nigeria’s annual production rate of cocoa beans is about 235,000 metric tonnes {MT}.

PLANTING SEASON

 
Planting of cocoa trees starts at the beginning of the rainy season.

PRICING
Cocoa currently sells for N380, 000 – N430, 000 per metric tonne.

USES

 
Cocoa’s main use is as a source material for Cocoa powder and Chocolate.

Cocoa butter which is a byproduct from cocoa is heavily used in the cosmetic and pharmaceutical industries.

The husks of cocoa pods and the pulp, or sweatings, surrounding the beans and the cocoa bean shells can be used in the production of Animal feed, soft drinks and alcohol.

Cocoa bean shells can be used an organic mulch and soil conditioner for the garden.

Potash from cocoa pod husk  is used mainly for soft soap manufacture. It may also be used as fertilizer for cocoa, vegetables, and food crops.

PROCESSING

 
Many products can be derived from cocoa.
Once the beans have been fermented and dried, they can be processed to produce a variety of products. These products include:

Cocoa butter is used in the manufacturing of chocolate. It is also widely used in cosmetic products such as moisturizing creams and soaps.

Cocoa powder can be used as an ingredient in almost any foodstuff.

Cocoa liquor is used with other ingredients, to produce chocolate. Chocolate is used as a product on its own or combined with other ingredients to form confectionery products.

EXPORT MARKET

 
The major export destinations of cocoa in Nigeria are; Netherland, UK, France, Germany, Spain, Italy, USA and Japan. Other emerging markets include China and India.

HARVESTING

 
The main crop is usually ready for harvest 5-6 months after the start of the wet season which is September- March and the mid-crop is harvested June- august.

STORAGE

 
Cocoa beans are normally stored in form of whole beans in jute bags for a relatively short period. They can be stored for 5 to 6 months safely.

COCOA INVESTMENT SUMMARY
Production
Processing
Export
Storage