Flooding raise price of cocoa by 21%

The price of cocoa beans in Nigeria has jumped by 21% in the last three weeks due to fears that the output of the commodity may be cut by as much as 7% because flood ravaged farmlands.

Cocoa is Nigeria’s second largest export after oil, with the country ranking joint fifth cocoa exporting in the world with Cameroon.

Price per metric ton rose to N700,000 ($2,282.36) from N580,000, as buyers scrambled for the beans, as the Cocoa Association of Nigeria, CAN, put the decline of output on poor weather conditions.

Speaking on the decline, the National President of CAN, Sayina Rima, said: “The high incident of this year’s rainfall has cut down our 2017-2018 production by seven percent.”

The International Cocoa Organisation, ICCO, estimated Nigeria’s production to reach 240,000 metric tons in the 2017-2018 output.

CAN however fears that a decline in cocoa output could lead to a drop in the country’s position among the leading cocoa producing countries.

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According to Rima, high humidity led to the outbreak of Black Pod, a fungus disease this year, adding that the flood has made it difficult for farmers to sun-dry their cocoa beans properly.

“The combination of these factors has led to a decline in our production when compared to that of last season,” Rima explained.

Speaking also, Mr. Zacheaus Egbewusi, the chief executive officer of an agro-commodity inspection company based in Lagos, said farmers do not have adequate sunlight to dry their beans and this has resulted in the scarcity.

According to him, farmers are unable to maintain the quality of their cocoa beans, as machine-drying , which is not easily available in most rural areas, reduces the flavour of the beans.

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