Cocoa Farmers Lament Financial Despair as Price Crash by 70%

News in brief:

-Cocoa farmers in three South-West states say a steep drop in cocoa prices has triggered heavy debts, unsold harvests and financial hardship.

-Farmers and experts are calling for government intervention, including price regulation, subsidies and expanded local processing.

Cocoa farmers across Ondo State, Osun State and Ekiti State have raised concerns over a steep fall in cocoa bean prices, warning that the development has pushed many growers into serious financial difficulty.

In separate interviews with the News Agency of Nigeria (NAN), farmers described how the sudden shift from a period of high earnings to a sharp downturn has left many with mounting debts, unsold produce and growing uncertainty about the future of cocoa farming.

According to the farmers, what appeared to be a windfall in 2024 has quickly turned into an income shock, with cocoa prices falling by more than 70% from earlier highs, raising fears that many plantations may be abandoned.

Young Farmers Discouraged by Market Collapse

A cocoa farmer in Owo, Abiodun Joseph, said the drastic drop in prices has frustrated many young farmers who entered the industry during the boom period.

He explained that cocoa prices, which once surged and drove up the cost of chemicals and labour, have now fallen sharply while production expenses remain high.

Joseph noted that cocoa sold for about ₦14,500 per kilogram in January 2025 but now trades between ₦2,000 and ₦2,500 per kilogram.

According to him, many farmers can no longer afford basic living expenses or maintain their farms, a situation he said is discouraging young people from remaining in the sector.

Dealers and Farmers Call for Price Regulation

A cocoa buying agent in Akure, Olanrewaju Abiodun, said the price collapse has affected the entire cocoa value chain, including dealers who now struggle to repay debts.

He urged the federal government to establish a National Cocoa Management Board to stabilise prices, citing examples from Ghana, Cameroon and the Ivory Coast where more structured cocoa marketing systems exist.

Abiodun also alleged that farmers are increasingly vulnerable to exploitative middlemen who dictate prices in the absence of strong regulation.

Farmers Seek Subsidies and Support Measures

Another cocoa farmer in Ile-Oluji, David Ogunmakinwa, called for government subsidies on farm inputs such as fertilisers and insecticides to help farmers manage rising production costs.

He noted that while some farmers failed to invest their earlier profits wisely, young farmers should remain committed to cocoa production despite the current challenges.

Similarly, Kola Akinmoye, a farmer in Okitipupa, said many young people who joined cocoa farming during the price boom have already abandoned their farms following the market downturn.

Rising Debt and Risk of Farm Abandonment

In Ore, a farmer, Jimoh Aderinigbe, warned that many growers who borrowed money to cultivate their farms are now struggling to repay their loans.

He appealed for government assistance, warning that continued hardship among farmers could lead to serious consequences in rural communities.

Meanwhile, the chairman of the Cocoa Growers Association of Nigeria in Osun, Adewale Abimbola, said cocoa prices have historically fluctuated due to global market dynamics.

He added that Nigeria’s heavy reliance on exporting raw cocoa beans and volatility in foreign exchange rates also contribute to price instability, stressing the need for stronger local processing capacity.

Experts Attribute Crash to Market Correction

A cocoa merchant, Kolade Afeez, said earlier price increases were influenced by factors such as weather conditions, global market trends and extreme heat affecting cocoa production.

However, he explained that recent price declines may be linked to the appreciation of the naira against the US dollar and increased supply from new entrants into the cocoa sector.

An agricultural expert, James Yahaya, described the situation as a market correction following earlier supply shortages. He recommended measures such as minimum price guarantees, commodity boards, cooperative structures, contract farming and forward pricing systems to stabilise the sector.

Ekiti Government Unveils Cocoa Development Plan

Meanwhile, the Commissioner for Agriculture in Ekiti State, Ebenezer Boluwade, said the state government has launched a 10-year development plan aimed at positioning Ekiti among the top three cocoa-producing states in Nigeria.

Boluwade said the initiative includes the distribution of 500,000 cocoa seedlings backed by the United States Department of Agriculture TRACE programme, as well as a 50% subsidy on agrochemicals and seedlings.

He added that the government is also providing free fertiliser and ₦10 million worth of water pumps to support 28 cocoa nurseries across the state. According to him, the state requires about 10 million seedlings to achieve its long-term cocoa production targets, and training programmes are underway to expand nursery operations.