Nigeria will see a decline in its 2020 mid-crop cocoa export as the novel coronavirus pandemic hits the global demand for chocolate.
The demand for chocolate at the international market has declined tremendously owing to the closing of borders, halting of public and private transport, self-isolation and quarantine administration across cities globally to curtail the spread of the virus.
This has caused the average price of a metric ton of cocoa- a major input for the production of chocolates to rise by 14percent since the novel virus spread across continents.
Data from The International Cocoa Organisation (ICCO) show that the monthly average price declined from $2,716 in February to $2,338 in March, while the figure for April is yet to be made available.
“The global demand for chocolate has declined and this is attributed to the coronavirus pandemic which has shutdown several major cities in Europe and North America,” said Dokun Thompson, the Oloni of Eti-Oni and the chairman of Eti-Oni Development Group in a response to questions.
“This has slowed down all economic activities and greatly affected export of commodities and cocoa was not spared as prices have dipped to below $2,000 since the beginning of the pandemic,” Thompson said.
He stated that the country’s export of cocoa beans will be affected if the situation fails to improve before the midcrop cocoa season fully commence next month.
He called for Federal Government support for cash crop farmers, noting that their means of livelihood have been badly affected by the pandemic.
Cocoa is Nigeria’s major cash crop non-oil export earner and the country is among the top grower of the crop.
Nigeria has two cocoa harvest seasons which include the smaller midcrop from April to June, and the main crop from October to December.
The midcrop accounts for about 30percent of Nigeria’s cocoa output while the maincrop accounts for the remaining percentage.
Africa’s most populous nation now ranks fourth with 255, 000 metric tons production in the 2017/2018 cocoa season, recent data from the International Cocoa Organisation (ICCO) states.
“The situation is really bad for us farmers. We are just pilling up our cocoa and waiting for the pandemic to be over. Cocoa can be stored for up to two years if properly stored,” Sayina Rima, national president, Cocoa Association of Nigeria (CAN) said by phone from Ikom in South-South Nigeria.
“Prices are just tumbling now because there is no market right now for cocoa. Input prices are surging and cost for labour is rising amid the lockdown,” Rima said.
He stated that cocoa farmers across the country are feeling the pains and most are yet to commence harvesting for the midcrop season owing to the pandemic.
The outbreak of the virus has also reduced the global grinding of cocoa beans.
Processing of cocoa has declined in the first quarter of 2020 on falling chocolate demand, according to a survey conducted by Bloomberg.
In Europe – the biggest consuming region of chocolate, grinding may fall three percent from a year earlier, according to the median estimate of Bloomberg.
Josephine Okojie
