Finance

August 2, 2010

Cocoa stakeholders gather for yet another celebration

By Jimoh Babatunde
Farmers, researchers, policy makers, government officers and stakeholders in the agricultural sectors gathered in Ilorin, Kwara state last week for yet another National Cocoa day celebration organised by the National Cocoa Development Committee (NCDC) established by the Obasanjo’s administration to encourage farmers in the rich tree crop production.

Cocoa on display at the 6th National Cocoa day celebration held in Kwara State.

This year’s edition which is the sixth to be organised by NCDC, which has its members drawn from the fourteen producing states in the country, had as its theme, “Quality Cocoa for National Economic Transformation.”

The Governor of Kwara state, Dr. Abubakar Bukola Saraki, captured the objectives of the gathering in his opening speech that the event is expected to  brainstorm and map out strategies to redress the abnormal situation in which the country’s cocoa farmers find themselves today, “ especially in the areas of inappropriate pricing of cocoa, excessive use of chemicals and its hazards, inadequate enlightenment of farmers as regards funding of their farm projects, inadequate enlightenment on local consumption of cocoa and the low patronage of the private sector in taking advantage of investment opportunities in the cocoa industry.”

Governor Saraki represented by his deputy, Chief Joel Ogundeji, said that cocoa was one of the major cash crops during the colonial era which even extended to the late sixties. “If not for the wanton neglect of the agriculture sector in the early seventies in favour of crude oil, cocoa would have maintained its status as a choice crop especially now that its natural importance such as health values is fast becoming apparent.”

While noting that the government of the nation owes it a duty to bring back the lost glory, Saraki said strategies that would encourage and motivate private sector participation in the production, processing and marketing of cocoa and its by products must be put in place.

He added “ we must create the adequate enabling environment to promote the involvement of the private sector in cocoa rejuvenation and rehabilitation, especially through the strengthening of research institutions and making the presence and impact felt in the cocoa producing states.”

But, the Minister for Agriculture, Prof. Sheikh Ahmed Abdulla, while appreciating the importance of cocoa to the country’s economy said that the government is poised to provide the enabling environment for the sustainable development of the cocoa industry through the revitalizing the National Cocoa Rehabilitation programme.

“A roadmap for cocoa development has been articulated to serve as a strategic plan to move the national cocoa economy forward in the next 10 years. In the short term that is within the time frame of 5years, we will engage in and support programs and project that will deliver improved varieties and productivity enhancing technologies.”

Prof. Abdullah said the country is the 4th largest producer of cocoa globally, with an average production of 340,000 metric tonnes per annum and that the  cocoa economy accounts for more than 30% of our agricultural export in earning.
“In 2008/2009, with an average price of 250,000 per tonne, about a hundred billion was pumped into the national economy. This contribution shows that this commodity is a good economy driver of this country.”

The minister noted that they expect an annual production of 400,000 tons of cocoa based on the land size of 800,000ha planted to cocoa and to achieve this objective, he said the following strategies will be adopted.

Facilitate availability and access to productivity enhancing technology transfer through farmer field schools; time access to essential inputs; promote timely availability and delivery of improved planting materials at affordable costs; promote good agricultural practices; promote youth interest in cocoa production and promotion of activities that enhance production of quality cocoa that meets international standards.
And as a means of promoting quality standard, the organisers invited  the Country Manager, IITA/ Sustainable Tree Crops program,  Dr. Chris Okafor to present a paper on Economic Implications of Good Quality Cocoa.

In his paper, Dr. Okafor said that the quality of cocoa is one of the key factors that determine the demand for and price of cocoa as well as improvement in incomes.

“The premiums paid on cocoa are determined largely by quality parameters. Ghana cocoa attracts $150-200 per ton premium on account of quality. Fine or flavour cocoa from Ecuador attracts more than 35% over and above NYCE price.”

He added that declining bean quality has significant commercial implications for the industry, “ low quality beans raise the cost of bean processing; increase the quality of rejected beans and create food safety concerns and in turns reduces the margins of actors in the supply chain.”
Speaking on measures to produce quality coca beans, Dr. Okafor said farmers must adopt the Good Agriculture Practice (GAP), which FAO says is the practice that addresses environmental, economic and social sustainability for on farm processes, and result in safety and quality food and non- food agricultural products.

He then took the farmers round the GAP recommendations for production of good quality cocoa in physical handling; in drying of cocoa beans; in harvesting and braking of cocoa pods; and in fermentation among other measures.

On mitigating pesticide residues, Dr. Okafor said farmers should apply pesticides to address identified problems in the right way and should avoid pesticide cross contamination as usage must comply with all national and international regulations.

He, therefore, advised that farmers to separate drying facilities for cocoa, separate collection and storage facilities as well as separate packaging and transport of cocoa.

Dr. Okafor, while calling for the training of farmers on Good Agriculture Practice (GAP), said there are needs  for the strengthening of quality control institution and measures; incentives for production of good quality cocoa beans; transparency in the cocoa supply chain; review of storage systems and the provision of market information to farmers at the right time.

A cocoa farmer from Edo state, Mr. Omoregie asked how he can  know if his cocoa if laden with metal residues which Dr. Okafor said it is impossible to do that at the farm gate, but asked that proper soil analysis be carried out as the source of the heavy metals in cocoa is the soil.

“There is an absence of relevant equipment for farmers to detect heavy metals in the soil and cocoa beans.” Dr. Okafor said.

One major issue that was of interest to the cocoa farmers during the session was funding for production and when Dr. Joel Aniegbolu from the Central Bank of Nigeria (CBN) spoke, the farmers where all hears.

The Director from the Development Finance department of the CBN told the cocoa farmers that the states have not approached the apex bank for access to the N200billion agriculture intervention  fund domiciled there by the federal government for farmers in the country.

“I repeat none has come to us. The guideline says for the small scale farmers, the state government should access the fund on their behalf. Because they know that the poor farmers may not have the necessary power, they don’t have the collateral to borrow. So we made it clear that state government should borrow on their behalf and give them through cooperatives, but none of the states has approached us yet.

I will tell you that of the N200billion, the big farmers have been able to access N60billion, only five state governments have come to us for this fund on behalf of their farmers and out of these five states, none is from the 14 cocoa producing states, so farmers talk to your state government to come and access this fund on your behalf so that you can enjoy the benefit.”

In his contribution, the Minister of Agriculture, Prof. Abdullah disclosed that Federal Government has added cocoa to list of crops to benefit from the fund.
He added “ This year, in addition to providing funds for the procurement of agricultural chemicals, my ministry will also provide funds for the construction of fermentation  boxes and solar driers which will be distributed to farmers through the farmers field schools. Being the first thing in the processing activities,  will ensure that quality cocoa is produced by our farmers. We want to ensure that Nigerian cocoa command the premium position as it was several years ago.”

The country’s President, Dr. Goodluck Jonathan reiterated the government commitment to the funding and development of cocoa at the closing ceremony when he said “as a practical demonstration of government commitment to cocoa development, we are distributing approved agro chemicals to all cocoa producing states of this country.

“We are also providing a financial window through the agric. loan scheme to large and medium size farmers, while the sum of N1billion has already been made available through state governments  at a low interest rate to small holder farmers which include the cocoa farmers.

The President represented by the Vice President, Arc. Namadi Sambo said “I have been told that the cocoa sub sector is becoming an endangered sector, this should not be so for a sector that I am told has an installed capacity of 96000 metric tonnes and an annual export  turn over of about $342.9 million and a total capital investment of N15.4 billion.

“To ensure its sustainability, I  am hereby directing the setting up of an inter ministerial committee comprising of the federal ministry of agriculture; the ministry of commerce and industry; the ministry of finance; the CBN and Nigeria Export Promotion Council to meet with the Cocoa Processors Association of Nigeria to identify their challenges and proffer solutions to them. The Minister of Agriculture will co-ordinate and report to reach me within six weeks.

The President said for the country to earn revenue and create employment from cocoa, “ we must add values to our cocoa, so the cocoa processing sub sector must not be allowed to die.

This administration is encouraging investment in the processing sector and all other sectors of cocoa production.”
President Jonathan called on the younger generation to get involved in all areas of cocoa economy, production, processing and export, nothing that the country needs the younger generation to take part in this important agric. sector.

He promised that government will continue its commitment to cocoa production by  providing high yielding and early maturing varieties of   cocoa seedlings and at highly subsidized rates.

One of the cocoa farmers from Osun State, Alhaji Wahab Bello commended the National Cocoa Development Committee (NCDC) for what they have been able to achieve in their state as the farmers have enjoyed the chemical and inputs subside.

He said the State Cocoa Development Committee under the leadership of the Deputy Governor of Osun, Erelu Olusola Obada gives each cocoa farmer as much as 400-500 seedlings as well as regular training through the Farmers field school.

Wahab, who is the Vice President of the Koko dowo co-operative society, said they will expect the government to extend the granting of loans to the cocoa farmers to boost their production in the state.

For Mr.  Omoregie Edwin from Edo State, he wants the government to pay more attention to extension works which he sees as a major missing link militating against the growth and development of cocoa in the country.

He said that both small and large_scale farmers in the country were not receiving adequate extension service delivery in terms of research findings and technology transfer due to the dearth of extension workers.

Another stakeholder, Mr. Ojo Bakare , told Vanguard  that the Federal Government has deviated from the concept of extension workers complementing the activities of research institutes by ensuring effective technology transfer, soil testing and monitoring of farmers in the rural areas.