Cocoa, Farm Produce Slump in Ipele as Farmers Count Losses

News in Brief:

-Cocoa prices in Ipele have crashed as coconuts and other perishables are facing severe price drops and weak consumer demand.

-The crisis highlights the urgent need for value addition, better storage, processing facilities, and stronger rural infrastructure to protect farmer incomes.

Nigerian farmers are once again facing a harsh reality in the market. In Ipele, cocoa prices have crashed to ₦2,500 per kilogram, according to a source. Coconuts that sold for ₦700 now go for as low as ₦300 each. 

In several markets, traders are pleading with buyers to take plantains on credit to prevent total spoilage. For many pepper farmers, the situation is even worse; they are haemorrhaging financially as demand dries up.

Markets this week have been described as a ‘bloodbath’. Demand has collapsed, leaving farmers stranded while some processors and middlemen capitalise on cheaper raw materials. The painful question remains: why are price surges the only time farmers make meaningful profits? Why can’t increased demand, efficient systems, and value addition drive stable income?

The recent fasting period observed by both major religions has further reduced consumer spending. However, the truth is that purchasing power was already weak before then. With consumers cutting back, perishable produce is rotting in both rural aggregation points and urban markets. Mass spoilage has become the norm, rather than the exception.

Policy, Inflation Control and Cost

At the macroeconomic level, demand is being squeezed. High interest rates of about 26.5% and a Cash Reserve Ratio (CRR) of around 45% have tightened liquidity in the economy. Budgetary releases are slow, contractors are owed, and the circulation of funds is weak. These measures are largely aimed at controlling inflation, but the unintended consequence is suppressed demand.

When people have less money to spend, they buy less food. When demand drops, farmgate prices crash. Farmers bear the brunt of policies designed to stabilise the broader economy. It becomes a vicious cycle; lower income for farmers means less reinvestment, lower productivity, and more vulnerability.

Value Addition, Storage and Infrastructure Are Non-Negotiable

Value addition is king. Without storage, processing, and rural infrastructure, farmers will continue repeating the same painful cycle. Good roads connecting rural areas to cities would reduce spoilage and expand market access. Processing facilities in every Local Government Area could stabilise prices and create jobs.

A recent visit to the Netherlands showed cocoa stored for up to three years, still fresh. That is the power of proper fermentation, contamination-free drying, and modern storage facilities. Unfortunately, much of Nigeria’s cocoa suffers from poor post-harvest handling, reducing its shelf life and export value.

Farmer cooperatives can explore solar-powered storage and partner with technology institutions. Funding remains a challenge, especially when members are already losing money.

If Nigeria is serious about food security, government-backed processing, strategic grain reserves, and guaranteed minimum pricing must move from talk to action. Our farmers cannot continue to suffer in silence.