Nigerian mid-crop cocoa output seen weak as coronavirus disrupts exports

Published 15/05/2020, 09:33
Nigerian mid-crop cocoa output seen weak as coronavirus disrupts exports

By Chijioke Ohuocha
ABUJA, May 15 (Reuters) - Nigeria's cocoa mid-crop output is
expected to be weak as measures to curb the spread of the
coronavirus hindered farmers and exporters, creating a backlog
of unshipped beans, the president of the cocoa association said.
Mufutau Abolarinwa told Reuters that some of April's orders
were still being exported after lockdowns disrupted transport
and port activities. Around 5,000 to 6,000 tonnes of beans were
stuck at Lagos port and warehouses in the country, he said.
Nigeria is the world's fifth biggest cocoa grower, and its
mid-crop - harvested between May and September - comes in at
between 50,000 and 60,000 tonnes when weather conditions are
good and chemicals readily available to spray diseased trees.
The government last week eased month-long lockdowns in
commercial hub Lagos state, neighbouring cocoa producing state
Ogun and the capital Abuja. But interstate movement has been
banned, creating a headache for cocoa delivery.
Ships are being quarantined at the port, creating extra
storage costs.
Trading houses are anxious to receive their shipments,
Abolarinwa said, noting that delays could affect demand for
further beans from farmers, especially as the mid-crop harvest
is about to start.
"We are hoping for an improvement," Abolarinwa told Reuters
by phone.
One local buying agent echoed Abolarinwa's concern and said
the export delays have also slowed domestic demand because
buyers were struggling to resell beans stuck in their warehouses
to exporters.
Some farmers said this year's mid-crop could begin in the
southwest region a month later than usual, in June, due to late
rains, and output could be hit by a lack of chemicals. This
could see the main crop extend to November.
No official figures for 2018/19 cocoa output have been
released. The International Cocoa Organization estimates 2018/19
output at 250,000 tonnes.
Farmers expect the late rains to affect bean weight for the
mid-crop which could be around 270-280 grammes, compared with
average weight of around 300 grammes.
"We are supposed to be spraying now to avoid black pod
disease once the rains start," said Oko Aja, who owns a
42-hectare cocoa farm in Nigeria's second-biggest producing
region of Cross Rivers state.
"But because of coronavirus, labour is scarce, and we don't
know whether we would get chemicals or not."
Nigeria has had 5,162 confirmed cases of the new coronavirus
with 167 deaths. Some cocoa-producing states have confirmed
cases, which has curbed farming practices as physical distancing
rules disrupt the way farmers and buyers interact, analysts say.
"By now I should have produced around seven to eight tonnes
from the light crop, but there's no production at the moment,"
said Aja.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.