HOW TO START YOUR PROFITABLE COCOA FARMING BUSINESS

Cocoa (Theobroma cacao) is a small perennial tree crop that primarily comes from three tropical regions; West Africa, Southeast Asia, and Latin America. It usually ranges in height between four and eight meters. Cocoa is an important cash crop in Nigeria. It is the highest non-oil export in the country. The cocoa market is estimated to hit 54 billion USD in 2026.

There are over 100 agricultural items you can export from Nigeria but if you are looking for an industry where the network of the business is over $900m and 309th most traded product in the world, then let me introduce you to cocoa export business in Nigeria

Before the oil boom in Nigeria, there was cocoa, which we banked on as one of our major cash crops exports. Nigeria was then the biggest exporter of cocoa in Africa and ranked amongst the top exporters in the world. According to the Cocoa Association of Nigeria (CAN), Nigeria ranks behind Cote D’Ivoire (1st), Ghana (2nd) and Indonesia (3rd). Together, Ghana, Nigeria, and Cote D’Ivoire supply more than two -thirds of the world’s cocoa.

Another reason for cocoa farming in Nigeria is because it is a perennial crop that can survive for many decades. Once planted and nurtured to maturity, farmers can harvest from a cocoa tree for many years. While initial cultivation can be a hassle, once mature, cocoa trees could be a source of income for the farmer for 40 years or more.

Cocoa production business requires a huge amount of money to start. This capital will cover land acquisition, seed purchase, pest control, equipment, harvesting, store set-up, e.t.c. Most importantly, as soon as you begin, ensure to set aside some funds for labour, pesticide and other expenses until harvest.

There are certain factors to consider when starting a cocoa farm which includes; A large expanse of good land with the appropriate climate conditions and with a good steady rainfall supply. The farmer must invest in good quality, disease-resistant, and high-yielding cocoa beans for planting.

Best Climate conditions for Cocoa Farming in Nigeria; Cocoa farming can only be done under very specific climatic conditions which include 21–32oC temperature and 100–250 cm of rainfall, well distributed throughout the year. Cocoa trees do not like too much sun, and its natural habitat is under the heavy rain forest canopy. That’s the reason why you rarely find a cocoa farm in the northern part of Nigeria. Cocoa would only thrive in states like Ondo, Ogun, Rivers, Cross River, Osun, Oyo, Ekiti, Imo, the western, Eastern and Southern states of Nigeria where there is abundant rain and less sun, according to Africa Business Classroom.

Capital also plays a large role in the kick-off of this business. A potential merchant has to decide if he would be going into Cocoa cultivation large scale or small scale. This decision would influence the amount of capital he would be investing in the business. This is why a good Business plan goes a long way in determining the success rate of the cocoa cultivation business

Marketing and Export: The international price of cocoa beans is currently rising in response to high demand for cocoa products as the industry wakes up to a potential long-term shortfall in global supply. Climatic conditions, drought and aging cocoa farm in most part of West Africa, the general tonnage of cocoa has dropped drastically. A ton of cocoa seeds is sold between $10,000 usd – $12,000 usd per ton in the International market. Farmers and exporters are currently making between 50% to 100% Return on Investment

Farmers to Co-operatives – Farmer co-ops combine cocoa from several farms to sell to different agencies. The co-op purchases cocoa directly from farmers, and in some cases, sells it to exporters directly. In other cases, the co-op may also export the product directly.

Nearly half of all Cocoa in Nigeria is exported to the Netherlands (45%). Germany and Malaysia are ranked second and third in cocoa imports from Nigeria, importing 22% and 6.2% of Nigeria’s cocoa output, respectively. Other top importers of Nigerian cocoa include Spain, Italy, Belgium-Luxembourg, and China.

Harvesting and Processing

Patience for maturity: Cocoa trees take about 3-5 years to reach maturity and produce harvestable pods. Be patient and maintain good agronomic practices during this period.

How Much Does it Cost to Start a One Hectare Cocoa Farm in Nigeria

The cost to start a one hectare cocoa farm is detailed below:

Acquisition of one hectare farmland: N100,000 – N400,000

Surveying and Land Documentation: N100,000 – N200,000

Clearing, Ploughing and Harrowing: N55,000

Seedlings: N120,000

Planting: N10,000

Irrigation: N300,000 – N650,000 (Optional)

Fertilizers and Manure: N20,000 – N100,000 (Depending on soil fertility)

Pesticides: N20,000

Others: N100,000

Harvesting: Harvest ripe cocoa pods by hand, using a machete or knife. Take care not to damage the tree or other pods during the process.

Remember, cocoa farming requires continuous learning and adapting to changing conditions. Seek guidance from agricultural extension services, attend training programmes, and network with other cocoa farmers to enhance your knowledge and maximise your chances of success.

Start a lucrative cocoa farming Business. In this information, you will learn the best way to market and profit from the cocoa farming business. Most especially, you will learn the exact costs of the resources and equipment you need for your cocoa farming business. The body of this work is formed from consulting experienced and relevant people running the Cocoa farming business, to get first-hand information about the success secrets and marketing strategies deployed to achieve business success

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