How To Make Money Starting Cocoa Production Business In Nigeria 2021

Nigeria is one of the largest producers of cocoa beans in Africa, (4th Biggest producer in the World) with an annual production of about 1.7 million tons. It has been a significant exporter for more than 30 years and ranked as the second-highest producer globally. The Nigerian government estimates that by 2020 Nigeria could be exporting over 2 million tons annually to become the world-leading supplier. 

A cocoa production business can be started from scratch with little money and within a short period without any prior experience or expertise. 

Cocoa beans are easy to grow on small plots, making it a sustainable business model for farmers who want to diversify their income sources or look for alternatives to traditional crops such as yams, cassava, and maize.

We are living in a world where everyone is trying to make money. One of the best ways to generate income is through business ownership. The cocoa production business in Nigeria has always been one of the most profitable businesses globally, and with the right knowledge, it could be very successful for you. This blog post will help you get started on your cocoa production journey by providing advice from someone who has done it before.

How profitable is cocoa farming in Nigeria

Cocoa growing is one of the most lucrative enterprises in Nigeria for entrepreneurs interested in agriculture. It produces a big crop without requiring a lot of labor or highly automated equipment, and it has a vast worldwide market waiting to buy it.

Nigeria ranks fourth after Cote D’Ivoire, Ghana, and Indonesia, according to the Cocoa Association of Nigeria (CAN). Moreover, two-thirds of the world’s cocoa comes from Ghana, Nigeria, and Côte d’Ivoire.

Cocoa cultivation has the advantage of just requiring a single major investment. This is because, to establish a cocoa plantation, you only need to plant the trees once, and then all you have to do is harvest every year, with the typical cocoa tree lasting 45 years and producing regularly.

How to start cocoa farming in Nigeria

The cocoa industry is a billion-dollar business in Nigeria, and the country is one of the biggest producers of cocoa beans. However, many Nigerians are unaware that they can start their cocoa farms with little to no capital investment to reap these benefits. This blog post will discuss why you should consider starting your cocoa farm in Nigeria and provide steps to go about it! 

Step By Step Plan On Cocoa Production

The cocoa tree is an evergreen that produces fruit. The pods are harvested by hand and then dried in the sun before being processed into chocolate. Cocoa production is a multi-billion dollar industry worldwide, but it’s difficult to find reliable information on producing your cocoa. This blog post will outline the steps necessary for you to start your small-scale cocoa farm at home!

Get land and Plant the Seed.

After selecting the seed, the following step is to plant it. The ideal period to plant cocoa is between April and May, starting the wet season.

To this end, there are many methods for sowing a cocoa seed. Seeding, budding, cutting, and marcotting are all options.

Seeding

Seeds are removed from bean pods and sown in the ground after approximately 15 days of production.

Bud the Plant

This is a less frequent technique of cocoa planting, although it is still employed. To begin, cocoa buds are taken from a mature tree and planted beneath a different tree. The old tree may then be chopped down and the new one allowed to grow after it has begun to mature.

Plant Cutting

To cultivate cocoa, you’ll need a plant cutting with 2-5 leaves and 1-2 buds. The leaves will then be chopped, and the cuttings will be put in a polythene-lined container. It may be moved to the plantation as soon as the tree roots develop from the container.

Marcotting involves removing a strip of bark off a limb and covering it with sawdust and a polythene bag. The branching cut will be sown as soon as the covered region starts to develop.

Keep the plant alive.

Cocoa is disease-prone, and as a result, it needs special attention and pesticides to keep pests and diseases at bay after it has been planted. The cocoa plant, like every other food crop, is susceptible to a variety of pests and illnesses. The black pod disease (a severe disease in West/Africa), Cherelle wilt, and charcoal rot are only a few cocoa plant illnesses. Cocoa mirids, mealybug, cocoa pod borer, and frosty pod rot are the pests.

As a result, after the seed is sown, regular care is required to ensure optimum production. Weeding, trimming, replacing dead seedlings, and regenerating the old cocoa plant are all tasks that should be completed.

Harvest the plant

Cocoa plantations must be developed after approximately 4-5 years of physical labor and effort before being harvested. Harvesting may last for years, with most fruits appearing from October to February and May to August each year.

To harvest the precious cocoa beans, the ripe seed pods are first cut from the trees with a dagger or sticks, then split apart with a machete. However, since these beans have a strong bitter flavor, they must be fermented. The pleasant flavor of fermentation takes approximately 4- 5 days to emerge. The beans are then dried, washed, and packed for sale.

How long does it take cocoa to grow

Patience is required to grow a cocoa tree, the plant whose pods are used to make chocolate. A cocoa seed takes three to five years to mature into a fruiting tree. Each tree can only produce a certain amount of seeds. And those seeds aren’t the same as those from the parent plant. The genes in the seeds are a jumbled mess.

Cocoa yield per hectare in Nigeria

The cocoa yield in Nigeria has been steadily declining since 2008. This is due to several factors, including the drought that affected much of Africa in 2011 and 2012, which left many Nigerian farmers without food or water for their farms. Coupled with climate change, this led to an increase in pests and diseases among plants.  The government has tried to help by providing improved farming practices that promote sustainability, but it doesn’t seem like they are working yet.

Is growing cocoa profitable?

Cocoa is one of the most valuable crops in Nigeria. It’s used to produce chocolate, cocoa powder, and other cocoa products. When you think about it, these are some pretty amazing benefits for a single plant! With that said, is growing cocoa profitable?

Cocoa is a tricky crop that requires a lot of expertise and experience to grow. It can be difficult for Nigerian farmers inexperienced with cocoa farming to know if it’s worth the effort. The answer depends on many factors, including weather conditions, what type of soil you’re using, your land size, the region in which you live, and whether or not there is an established market for your product.

How much does a cocoa farmer earn a year?

Nigeria is the world’s leading producer of cocoa beans, but the farmers that work with them are not being paid enough for their efforts. The average income for a Nigerian cocoa farmer is $1,000 annually. This may seem like a lot of money to many Westerners, who might make about half of this amount in an entire year on their jobs. But considering what it takes to grow cocoa beans and harvest them on time – working long hours in high temperatures without proper protection from exposure to pesticides or other harmful chemicals – this annual income hardly seems worth it.

What is the current price of cocoa?

A tonne of cocoa now sells for anywhere between N700,000 and N750,000, depending on where it is purchased. The prices of cocoa per tonne in various cocoa-producing regions in Nigeria are shown below:

Which country is the world’s largest producer of cocoa?

With 2,034,000 tonnes of cocoa beans produced in 2017, the Ivory Coast is by far the world’s biggest cocoa producer, providing almost 30% of the world’s cocoa beans. The cocoa business is very significant to the country’s economy, accounting for 40.2 percent of export revenue.

Where can I sell cocoa in Nigeria?

Many Nigerian farmers lack access to markets where they can sell their cocoa beans. The following are Nigeria Cocoa Dealers and Suppliers:

  • 1Cocoa Association of Nigeria. RB 2, Ondo State Industrial Park Ilesha Benin Expressway, Akure, Ondo State Nigeria.
  • 2Tripplesea Limited. 4 Bashiru Oweh Street, Ikeja, Lagos State Nigeria.
  • 3BOS Natural Resources Limited.
  • 4Omjas Farm.
  • 5Usha Cooperative.

What are the three largest chocolate companies in the world?

RankCompanies2019 Net Sales (US$ billion)
1Mars Wrigley Confectionery (USA)18
2Ferrero Group (Luxembourg / Italy)13
3Mondelēz International (USA)11.8

Why are cocoa farmers so poor?

It’s a common misconception that cocoa farmers are rich and live in mansions. Most cocoa farmers live in poverty and struggle to feed their families.  The cost of living has increased dramatically, and wages have not kept up with inflation rates. Cacao trees take years to mature before the farmer can harvest anything from them, so many farmers will borrow money at high-interest rates just to plant more cacao trees. Then they wait until the tree matures before harvesting it for their next crop, which means they will be paying high interest rates twice as long even though they may only make one good harvest per year. This cycle of debt is crippling many African countries like Nigeria.

 Conclusion

We’ve walked through the steps to start your cocoa production business in Nigeria. From where you can buy land, how much it will cost, and what crops to grow on that land, we hope this has been helpful for any potential entrepreneurs interested in starting a cocoa farming business or investing in one already established.

We also want to provide some context about why many of these farmers are so poor despite producing such an important crop. The global demand for chocolate is going up faster than new producers have entered the market. In contrast, prices have plummeted due to increased competition from other countries with lower labor costs. This means that there may be more opportunity today for those who would like not only a small farm but a larger operation.

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