Cocoa farmers in Osun have called for the establishment of cocoa processing factories in Nigeria to help regulate cocoa prices and boost production.
The Secretary of the All Farmers Association of Nigeria (AFAN), in Osun, Mr Adewole Abimbola, made the call during an interview with the News Agency of Nigeria (NAN) on Thursday in Osogbo.
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Abimbola, who is also the Chairman of the Sweet Cocoa Association in the state, said cocoa farmers face price fluctuation challenges as exporters largely determine the prices paid to then.
According to him, most of Nigeria’s raw cocoa is exported and later processed in Europe and other Western countries, thereby giving buyers control over pricing rather than producers.
He said that local processing of cocoa would enable indigenous factories to influence pricing in favour of farmers.
“The price at which cocoa is sold and bought is determined by the global market, which is beyond the control of local farmers.
“Exporters purchasing cocoa from farmers largely dictate prices in line with international market trends and demand.
“If cocoa is processed locally before export, pricing would be driven by producers rather than exporters who currently buy the raw produce,” he said.
Abimbola noted that although rising global cocoa prices could benefit farmers, fluctuations could also negatively affect investment in the sector.
He added that foreign exchange rates play a crucial role in determining gains or losses in the cocoa business.
“The higher or lower the foreign exchange rate, the greater the impact on farmers’ returns,” he said.
He urged cocoa farmers and investors in the cocoa value chain to remain resilient, assuring them that the sector holds strong future prospects.
“Irrespective of price fluctuations, cocoa remains a viable cash crop, and losses in one season can be offset by gains in another,” he said.
Abimbola encouraged farmers who experienced losses not to be discouraged, expressing optimism that prices would improve.
“Farmers should not be downcast by temporary setbacks. In business, profit and loss are inevitable,” he said.
He also advised young farmers and new investors in the cocoa value chain to remain committed, noting that price dips are temporary challenges in the industry.(NAN)
