Post by Trade facilitator on Oct 20, 2022 18:16:40 GMT 1
Nigeria, being a country endowed with so many natural resources, has continued to blossom exponentially in the area of cocoa production and export. With over $489M in export of cocoa beans hereby making her the 5th largest exporter of cocoa beans, having Germany, Netherlands, and France as the major export destinations. The sector was the major exchange earner for Nigeria in the early 1950-1960s during the verge of Nigerian independence, and was ranked second exporter of cocoa before the oil sector was harnessed between 1970-1980 years after independence and the civil war of 1960.
The condition further deteriorated due to the adverse effects of the civil war, government policies (fiscal and monetary), frequent change of government (from a military regime to democracy and from one political party to another), corruption (FAGBADEBO, 2020), terrorism, and severe droughts. The issue of “oil boom” created both opportunities and distortions in the economy and increased the degree of movement of labour from agriculture to non-agriculture
In the government quest to diversify the economy and proactively decrease the vulnerability, provided land and climate to boost output of cocoa farming, issuing loans to small scale agro businesses, made favourable policies to encourage export. As a result of the government action, Nigeria exported cocoa beans worth N209. 89 billion to the international markets, which translated into 41.6 percent of the total export earnings, the second after crude oil, as reported by the National Bureau of Statistics, this is a great impact to economic stability.
Cocoa is known today as a single commodity contributing significantly to the agricultural revenue in the country. Despite its significant contributions, the sector is also facing a plethora of challenges, ranging from climate change, pest disease,technological advancement, unfavorable government policy on cocoa farmers etc.
In Analyzing cocoa production for export we need to consider
1. The unfavourable climate conditions and prolonged dry season hinders production
2. Low financial literacy and lack of funding are major obstacles that also impede farmers' ability to invest or acquire more advanced technological tools and pay laborers on farm. Farmers now rely on informal sources of credit loan which come with huge interest rates.
Objectively, when production is affected through this, output is geometrically dampened hereby reducing the total export and reserve for local consumption. Improved efficiency is a way to improve productivity which will help farmers meet up with domestic and International demands.
3. Use of fake chemicals by farmers.
The condition further deteriorated due to the adverse effects of the civil war, government policies (fiscal and monetary), frequent change of government (from a military regime to democracy and from one political party to another), corruption (FAGBADEBO, 2020), terrorism, and severe droughts. The issue of “oil boom” created both opportunities and distortions in the economy and increased the degree of movement of labour from agriculture to non-agriculture
In the government quest to diversify the economy and proactively decrease the vulnerability, provided land and climate to boost output of cocoa farming, issuing loans to small scale agro businesses, made favourable policies to encourage export. As a result of the government action, Nigeria exported cocoa beans worth N209. 89 billion to the international markets, which translated into 41.6 percent of the total export earnings, the second after crude oil, as reported by the National Bureau of Statistics, this is a great impact to economic stability.
Cocoa is known today as a single commodity contributing significantly to the agricultural revenue in the country. Despite its significant contributions, the sector is also facing a plethora of challenges, ranging from climate change, pest disease,technological advancement, unfavorable government policy on cocoa farmers etc.
In Analyzing cocoa production for export we need to consider
1. The unfavourable climate conditions and prolonged dry season hinders production
2. Low financial literacy and lack of funding are major obstacles that also impede farmers' ability to invest or acquire more advanced technological tools and pay laborers on farm. Farmers now rely on informal sources of credit loan which come with huge interest rates.
Objectively, when production is affected through this, output is geometrically dampened hereby reducing the total export and reserve for local consumption. Improved efficiency is a way to improve productivity which will help farmers meet up with domestic and International demands.
3. Use of fake chemicals by farmers.
