Reap rewards by investing in cocoa plantation

Cocoa was first introduced to Nigeria in 1874. Thereafter, the country became one of the world producers of cocoa from 1904.

In 1960, it became the second largest producer after Ghana, producing about 200,000 metric tons on annual basis.

Moreover, most of the developmental projects in the western region of the country were financed from cocoa income by the then western region government. However, the decline in production started with the advent of crude oil, when most plantations were abandoned.

Thus more than ever before, there is the need to revitalise cocoa production in Nigeria because of the dwindling oil income. Not only this, there is the need to diversify the economy to create jobs and income opportunities in the face of the global financial meltdown, and inability of getting income from oil to create jobs and wealth for majority of the people.

Cocoa is one of the most exportable crops in Nigeria, which can readily generate export earning to the people. It is also an investment that will outlive the owner, and the implication of this is that an investor in cocoa plantation will reap the rewards for the rest of his/her life.

The uses of cocoa are many. These include among others cocoa butter, cake and liquor. Cocoa products are used for beverage production and cosmetics, while its bye-products can also be used as organic fertiliser and feed for ruminant animals. So far, from cocoa pod, only the cocoa beans are economically used.
The cocoa husk and cocoa sweetens have been proved to be capable of a number of industrial processes, such as the use of the husk in livestock feed and soap making, and that of sweeteners in manufacturing of jellies, jams, food ingredients, wines, sugary solution, etc.

Requirements
The number one requirement is a large expanse of land where the soil is deep, fertile, well aerated and loamy in nature.

Another is the source of seedlings procurement, which is also very important. Alternatively, nursery may be prepared separately whenever the seed are pre-lanted before transplanting them to the field. It can be grown either from seeds or vegetative breeding, but commercial plantings are mainly grown from seeds.

Other requirements are black polythene bags, farm implements, shading materials, wind breakers, abundant labour, chemicals (fungicide, insecticides, etc.), processing implements, qualified personnel, some growth hormones, and drying facilities.

Market potential/project justification
Considering the benefits of cocoa today, its demand is fast rising and prices even getting better.

It is a good source of foreign exchange also for the investor and the country. For some time now, cocoa farmers in Nigeria have been smiling due to the boost in non-oil export, which was as a result of the abolition of cocoa board by the Federal Government.

However, the demand for cocoa beans in the country for both export and domestic uses is in the excess of the supply. Moreover, the ton of cocoa bean is now selling at 400 percent of the price some years back.

The recent deregulation of the economy by the government has further more made cocoa production to gain tremendous popularity because of boost given to the non-oils exports.

Thus a lot of abandoned cocoa plantations located in some parts of Oyo, Ondo, and Ekiti states have been re-activated by their owners. Suddenly, cocoa production is being seen as one of the major sources to earn foreign currency.

In view of the above, it has been identified that establishment of cocoa plantation is one of the investment opportunities for Nigerian investors. Not only because of its foreign exchange potential, but due to the fact that it will stand as life investment for its owners.

This project is strongly recommended for consideration by investors, investment houses and profit-conscious companies, including governments, to create jobs and income for the nation’s youths.

Projected revenue
A well-maintained cocoa plantation will yield a minimum of two tons of dry seed per hectare per year starting from the fourth year, which translates to 20 tons for 10 hectares.

The current selling price of cocoa is N350, 000 (minimum per ton). An annual income of N7 million can be generated from this project, with operating expenses put at N1.5 million per annum.
Investors will be making over N5 million annually from the fourth year for life, while serious-minded investors can be assisted in the actualisation of this project.