‘Higher cost of inputs has made cocoa production unsustainable’

President of Cocoa Farmers’ Association of Nigeria (CFAN), Comrade Adeola Adegoke, spoke with FEMI IBIROGBA on issues affecting cocoa production and productivity of farmers, and suggested ways to significantly increase production of the cash crop for maximum benefits.

What are challenges that keep cocoa production as low as we produce now?
There are many issues confronting growth of the cocoa industry in Nigeria. Most of these issues came up after the abolition of the cocoa board in 1986 and after the abolition, we could realise that growth, production and productivity of cocoa farmers declined.

Our production was about 590,000 metric tonnes in the 1950s and 1960s and we were regarded as the second largest cocoa producer in West Africa. Cocoa farmers then enjoyed a lot of patronage during the era of Chief Obafemi Awolowo. And when you look at the achievements and contribution of cocoa to the economy then in the South West, it was about 70 per cent. Cocoa took the larger chunk of the GDP, and we also recall that the free education and the Cocoa House were all done in that period. This implied that production per hectare was actually very good.

Coming back to the problems confronting the sector, the issue of improved variety, as of today, is a key factor in productivity per hectare because you will agree with me that we have many of the old varieties that have taken about 50 to100 years. Most of the farmers still rely on recycling old varieties for seedling production and that is why the productivity continues to go down.

Another challenge is funding. We do not have a clear funding system for the sector. In fact, smallholder farmers cannot go to anywhere to access funding, especially to take care of cost of production, which determines the output yearly.

I told you that since 1986, we have been having issues because there is no coordinating structure. The sector is just on autopilot. It means the farmer, buyer, exporter and every other stakeholder do what pleases them. The government and policymakers do what pleases them. There is no structure that services the subsector.

We used to have a cocoa development unit and it coordinated farmers and rendered extension services. How many extension units do we have now? Water, electricity and other critical infrastructures in major cocoa communities are zero, and this situation contributes to why we have many youths leaving cocoa farming and riding motorcycles, and some are into internet frauds.

And the farmers are withdrawing because they are not being incentivised to continue to produce. There is also climate change. Every year, adverse effects of climate change, such as drought and irregular rainfalls, affect productivity of cocoa trees but we have zero irrigation intervention.

You have mentioned two major critical issues. One is planting of older varieties by farmers, but we learnt that CRIN has developed improved seedlings. Why are farmers not planting them?
Nigeria has been blessed with new varieties, but what I am saying is that they are not readily availability. How available are they to farmers? Have we funded research institutes to actually produce these seedlings?

The second issue is funding. What is the intervention of the CBN Anchor Borrowers’ Programme like? 
That is why we have to tell you that we thank God that the CBN has come to intervene through the ABP, but when? The first intervention on cocoa production came in 2019 for just 1,221 farmers across nine cocoa-producing states. We have no fewer than 200,000 cocoa farmers in Nigeria. So, intervention was infinitesimal. We appreciate the CBN for doing it, and we believe a journey of 1,000 miles will start with a step.

On the issue of agro-inputs, farmers cannot succeed in agriculture if there are no subsidies. Even in the advanced countries, they subsidise inputs. How much subsidy do we have? We have some subsidy from the Federal Ministry of Agriculture, which we appreciate, but it is infinitesimal.

Is the Federal Government giving cocoa farmers any subsidy?
Yes. The Federal Government will always make subsidies available, but we are talking of huge needs and that intervention is less than one per cent. How do you look at that?

What is the form of the incentive that the Federal Government is giving?
They make some inputs available at subsidised rates. Such inputs include fungicides, pesticides and fertiliser, but it might be just 20 per cent subsidy. What I am talking about is that, it is less than two per cent of the total requirements of the smallholder farmers. When you look at the rate of input cost versus the output, it is not encouraging. So, farmers are groaning because farming is not sustainable without serious interventions. That is why we are advocating that the government and relevant stakeholders must look at the economic effects.

With your experience on the field, what will you recommend as holistic solutions to the problems?
There should be a kind of institution that actually services cocoa development in terms of production, research and development, policy making and robust coordination of stakeholders.

Do you mean an organisation like Ghana Cocoa Board?
Yes. An organisation like Ghana Cocoa Board that does not buy or sell but saddled with other responsibilities that can move the sector forward.

How do you want this board to be constituted? Private or government-driven?
It should be a public-private arrangement.

Which other ways do you want to suggest?
Other ways are about the living income differentials. We are going to Ghana soon to engage with relevant government agencies. The living income differentials that are being collected by farmers in Ghana and Ivory Coast, that is $400 in addition to the price of one tonne of cocoa sold, should be collected by Nigerian farmers too.

What impact will CFAN’s handbook on cocoa good agricultural practices have on production and productivity?
We have realised that our productivity has declined because the farmer does not equip himself with relevant good agricultural practices in cocoa production. Apart from that, there are other sustainable practices that are very critical when it comes to cocoa. These practices must also be embraced before we can get the $400 differential.

There are some critical issues relating to deforestation, child labour, chemical residue and traceability of sources of cocoa beans. We have talked about the climate change. It is a result of our practices. So, these negative practices have to be incorporated in cocoa production handbook so that farmers can internalise them and preserve the environment and eco-system.

Can all the farmers read the handbook?
Yes. We are producing it in different languages. We are doing it in other indigenous languages, and another thing is that we are also going to domesticate the implementation by training our farmers on what this book is all about.

What do you think about the declining number of cocoa-processing factories? Is it a factor in the lower production?
If we are able, as a nation, to process some of these beans, we will definitely enjoy far better income through employment opportunities.

Like how many cocoa processing companies do you know exist in Nigeria for now?
If we are going to count them, they are fewer than 10.