As Russia concludes plans to initiate direct import of cocoa beans from Nigeria, shipments of 17,000 tonnes (17 million kilogrammes) of the beans that moved from Lagos, Tincan Island ports to Netherlands and Indonesia in July 2024 fetched exporters N208 billion ($130 million) in July 2024.....KINDLY READ THE FULL STORY HERE▶
Findings revealed that low production and harsh weather had given Nigeria, the world’s sixth largest cocoa producer, 31 per cent increase y/y to 17,456 tonnes in the global market.
Further, it was revealed that cocoa rallied to a two-month high due to excessively dry conditions in West Africa, leading to disrupted global supply.
Also, Forecaster Maxar Technologies said that cocoa-producing countries, Ivory Coast and Ghana, had witnessed a significant decrease in rain over the past month, leading to below-normal soil moisture and limited crop growth.
Regardless of bad weather and oher challenges, Russia said that the first shipments of cocoa from Nigerian ports would commence between September and October, 2024.
According to Moscow’s Trade Representative in Nigeria, Maksim Petrov, the Russian trading houses will handle the deliveries from Nigerian ports, explaining that Moscow’s decision to start direct purchases of Nigerian cocoa beans was part of a strategy to diversify imports of the commodity away from ‘unfriendly countries’ that were currently Russia’s suppliers.
He said: “To date, leading Russian chocolate manufacturers have already tested Nigerian cocoa beans and are satisfied with the quality. We expect the first container shipments to arrive with the fall (September-October) cocoa harvest.”
In the first quarter of 2024, data from the National Bureau of Statistics (NBS) explained Nigeria’s cocoa exports rose by 304 per cent due to higher demand and naira depreciation, noting that cocoa exports, which accounted for 42.4 per cent of the N1.04 trillion agricultural exports for the period, surged to N438.7 billion in the first quarter of 2024 from N108.6 billion in the corresponding period of 2023 as price increased by over 567 per cent in the Q1 of 2024 because of huge deficit supply from Ivory Coast and Ghana.
Recalled that in June 2024, the International Finance Corporation (IFC) partnered with Johnvents Industries Limited to expand cocoa processing operations and increase its export capacity to global markets.
The company said that the partnership would also strengthen Nigeria’s agricultural sector and support the livelihoods of thousands of farmers.
It was revealed that the IFC’s $23.3 million financing package, which includes local currency funding in Nigerian naira, would allow Johnvents to expand its cocoa processing plant in Ondo State and double its production capacity to up to 120 metric tonnes per day or 43,800 tonnes of cocoa per annual, helping to provide steady incomes for farmers in its supply chain.
The IFC’s Managing Director, Makhtar Diop, said that agribusiness played a critical role in fostering value addition and diversifying Nigeria’s economy, adding that bIFC’s financing and advisory support for Johnvents would help to strengthen the company’s operations, develop Nigeria’s cocoa sector and sustain and create thousands of jobs.
He noted: “Cocoa plays a crucial role in Nigeria’s agribusiness sector and the country is one of Africa’s largest producers and exporters.
By supporting Johnvents, IFC is contributing to allowing the company to meet higher demand and access new markets, while boosting Nigeria’s competitiveness in the global cocoa market, and increasing the country’s export earnings.
“The financing package includes an $8.5 million loan from IFC’s own account, a $6.3 million loan equivalent in Nigerian naira with support from the local currency facility of the International Development Association’s Private Sector Window, and a $8.5 million loan by the Private Sector Window of the Global Agriculture and Food Security Programme (GAFSP).”
In addition, he noted that IFC would provide advisory services to Johnvents to help the company increase women’s participation in its workforce and across its value chain, noting that it would help strengthen the company’s ongoing sustainability and traceability programme and advise Johnvents on enhancing efficient digitisation and sourcing of its current processing capacity of cocoa-based products, including butter, cake, and powder for chocolates, confectioneries, and health products.