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Cocoa Farmers Make More Money On Weaker Naira by Adesiji77: 8:06am On Nov 07, 2016
Nigeria’s cocoa exporters are smiling to the bank as the steep devaluation of the naira has resulted in a sharp increase in the naira income from cocoa exports. “Despite a drop in the country’s cocoa output, farmers and exporters are making a lot of income presently, due to the foreign exchange situation” Zacheaus Egbewusi, chief executive officer, Agri Commodity Inspection Limited, told BusinessDay.”

BusinessDay findings show that the local price of cocoa per ton at Matori cocoa warehouse in Lagos was N1.25 million on Tuesday, 1 November, almost twice higher when compared to N650, 000 per ton in December of 2015. Hakeem Adebisi, a cocoa farmer in Ajebandele in Ondo State, said cocoa is now a more profitable business. “Farm-gate price of a kilo of cocoa beans have increased from N650 in December 2015 to N1, 250. We are currently harvesting and we are still expecting the price of cocoa to increase because of the value of the naira,” Adebisi said.

Some cocoa farmers confirmed to BusinessDay that they repatriate their foreign exchange proceeds through the country’s land borders to circumvent the Central Bank of Nigeria’s (CBN) rule that exporters can only withdraw their foreign exchange at the official rate of about N305 to the US$. This way, they exchange their proceeds at the blackmarket rate which is currently hovering around N470 to the US$. Some exporters said they sometimes buy products abroad with their foreign exchange earnings or come in with their earnings through the borders of other African countries, pretending to be nationals of these countries.

“Definitely the foreign exchange policy is driving people to do all sorts of things. The export figures are dropping, not because exporters are not exporting but most are going through the land borders due to policy issues,” said Obiora Madu, chairman, export group of the Lagos Chamber of Commerce and Industry (LCCI). “Exporters are not getting any incentives from the government, so why would they sell their dollars at the official market and lose money?” Madu asked.

Tunde Oyelola, chairman, Manufacturers Association Export Group, said the trend started as soon as there was a big differential between the parallel and the official markets. “It is a regulatory problem by the financial authorities. Why should you mandate exporters to take their dollar at N305?” asked Jon Kachikwu, CEO of Jon Tudy Interbiz, an exporter to the United States. The price of cocoa in US dollars on Thursday, 3 November was $2,678 according to data found on the website of the International Cocoa Organisation.

This means that cocoa exporters could earn N1.25 million per ton by selling export proceeds in the unofficial market at N470 to the US$ than the N816, 790 earnings if the cocoa sells it through the CBN’s official window at N305 to the US$, a N433, 000, a significant amount for any farmer. Nigeria is the world’s fourth largest cocoa producer, with total cocoa exports of $666.4 million in 2014, which dropped by more than half to $270.7 million in 2015; according to Nigeria’s non-oil export data, compiled by Cobalt Services. People familiar with the cocoa industry say a significant amount of the drop could be due to smuggling through the borders. Cocoa is currently Nigeria’s flagship crop export, dwarfing rubber, oil seeds, grains and nuts.

Export destinations include the Netherlands, Spain, India, Ghana, Gambia and Senegal, among others. Companies that participate in cocoa export include Olam International, Bolawole Enterprise, AIS Trades, among others. Out of N1.3 trillion total exports in the first quarter of 2016, cocoa accounted for N46.7billion ($153million), which went mainly to Europe and the United States. This constituted 3.7 percent of Nigeria’s total exports within the period, according to the National Bureau of Statistics (NBS)’s calculations. Though Nigeria produces an estimated 3.6 million metric tons of cocoa per annum, it consumes about 250,000 metric tons annually, according to data obtained from the Ministry of Agriculture and Rural Development.

Nigeria’s two cocoa harvests include the smaller midcrop from April to June, and the main crop from October to December. The midcrop normally accounts for about 30 percent of Nigeria’s cocoa output, while the main-crop constitutes the rest. High input costs, poor weather, aging trees and farmers are the main challenges faced by cocoa farmers


http://www.businessdayonline.com/cocoa-farmers-make-more-money-on-weaker-naira/

16 Likes 4 Shares

Re: Cocoa Farmers Make More Money On Weaker Naira by Pavore9: 8:35am On Nov 07, 2016
There is no incentive to channel the proceeds through the banking system. There is cool money to be from cocoa in the international market.

21 Likes

Re: Cocoa Farmers Make More Money On Weaker Naira by DICKtator: 12:31pm On Nov 07, 2016
This is what the West should be investing in and exporting while the North build their legendary groundnut pyramids and the East produce more palm kernel and export it!!

Regionalism should set the way to liberalism


grin grin grin grin

208 Likes 14 Shares

Re: Cocoa Farmers Make More Money On Weaker Naira by mrbillz(m): 12:32pm On Nov 07, 2016
cool cool

1 Like

Re: Cocoa Farmers Make More Money On Weaker Naira by rabex123(m): 12:33pm On Nov 07, 2016
Look at how Nigeria has forgotten about cocoa..
What have we been doing since independence self.

14 Likes

Re: Cocoa Farmers Make More Money On Weaker Naira by ibroh22(m): 12:33pm On Nov 07, 2016
hmmmmmm
Re: Cocoa Farmers Make More Money On Weaker Naira by ritababe(f): 12:33pm On Nov 07, 2016
rabex123:
Look at how Nigeria has forgotten about cocoa..
What have we been doing since independence self.

ask yourself, you are part of us.

31 Likes 2 Shares

Re: Cocoa Farmers Make More Money On Weaker Naira by jejemanito: 12:34pm On Nov 07, 2016
rabex123:
Look at how Nigeria has forgotten about cocoa..
What have we been doing since independence self.

Drinking oyel

41 Likes 1 Share

Re: Cocoa Farmers Make More Money On Weaker Naira by Onyeasi(m): 12:36pm On Nov 07, 2016
Odiegwu.... Story for the gods...

1 Like

Re: Cocoa Farmers Make More Money On Weaker Naira by Nobody: 12:42pm On Nov 07, 2016
Good old days of nigeria economy

1 Like

Re: Cocoa Farmers Make More Money On Weaker Naira by obailala(m): 12:44pm On Nov 07, 2016
Adesiji77:

....
“Definitely the foreign exchange policy is driving people to do all sorts of things. The export figures are dropping, not because exporters are not exporting but most are going through the land borders due to policy issues,” said Obiora Madu, chairman, export group of the Lagos Chamber of Commerce and Industry (LCCI). “Exporters are not getting any incentives from the government, so why would they sell their dollars at the official market and lose money?” Madu asked.

Tunde Oyelola, chairman, Manufacturers Association Export Group, said the trend started as soon as there was a big differential between the parallel and the official markets. “It is a regulatory problem by the financial authorities. Why should you mandate exporters to take their dollar at N305?” asked Jon Kachikwu, CEO of Jon Tudy Interbiz, an exporter to the United States. The price of cocoa in US dollars on Thursday, 3 November was $2,678 according to data found on the website of the International Cocoa Organisation.

This means that cocoa exporters could earn N1.25 million per ton by selling export proceeds in the unofficial market at N470 to the US$ than the N816, 790 earnings if the cocoa sells it through the CBN’s official window at N305 to the US$, a N433, 000, a significant amount for any farmer....
I really don't understand what's wrong with the CBN and this meaningless price regulation... you do not force down the exchange rate by forcing people to sell their forex at a very low price (even when they can clearly see the amount they lose). Stupid policies like this will only discourage people from engaging in exports to boost forex supply. This useless policy is the very reason Nigeria isn't reaping the potential benefits of the last devaluation (in terms of increased exports and increased income for exporters).

Similarly, the CBN forces diasporans sending money home to exchange their forex at the low official rate, but when family in Nigeria wants to send money abroad (e.g. to children schooling abroad), they are forced to buy forex at the true rate (blackmarket rate). I still wonder who advises the CBN board that this policy can encourage people to send more forex home.

41 Likes 4 Shares

Re: Cocoa Farmers Make More Money On Weaker Naira by Akinz0126(m): 12:46pm On Nov 07, 2016
The sooner we go back to regionalism the better for us all.Just imagine what if we were still in regionalism govt We could have gone far beyond imagination Lord lugard you really did more harm than good to Us by bringing us together with this born to rule mafians.

11 Likes 2 Shares

Re: Cocoa Farmers Make More Money On Weaker Naira by basilo102: 12:47pm On Nov 07, 2016
This is not about cocoa alone. all exporters make more money on weaker currency. we export little and import a lot that's why a weaker currency is not generally good for Nigeria. Secondly, cocoa exporters make the money, not cocoa farmers, they are different

12 Likes 1 Share

Re: Cocoa Farmers Make More Money On Weaker Naira by Jeetkool(m): 12:47pm On Nov 07, 2016
we are soo bless in this country
Re: Cocoa Farmers Make More Money On Weaker Naira by codemaniacs: 12:47pm On Nov 07, 2016
rabex123:
Look at how Nigeria has forgotten about cocoa..
What have we been doing since independence self.

After crude oil, cocoa is Nigeria's second highest income earner.

No one forgot about cocoa. You just lack info on Nigeria's exports and are living the city life.

27 Likes 1 Share

Re: Cocoa Farmers Make More Money On Weaker Naira by Nobody: 12:47pm On Nov 07, 2016
Smart farmers
Re: Cocoa Farmers Make More Money On Weaker Naira by codemaniacs: 12:52pm On Nov 07, 2016
Akinz0126:
The sooner we go back to regionalism the better for us all.Just imagine what if we were still in regionalism govt We could have gone far beyond imagination Lord lugard you really did more harm than good to Us by bringing us together with this born to rule mafians.

Some regions would have gone far.

If Nigeria was still practising regionalism. U would never ever hear of Dangote and the entire northern elite infact the north will have very few elites.

8 Likes

Re: Cocoa Farmers Make More Money On Weaker Naira by nairaman66(m): 12:54pm On Nov 07, 2016
Nigeria is cursed and nothing good can come out of it. A country built on lies can never stand!

5 Likes

Re: Cocoa Farmers Make More Money On Weaker Naira by rabex123(m): 12:54pm On Nov 07, 2016
codemaniacs:


After crude oil, cocoa is Nigeria's second highest income earner.

No one forgot about cocoa. You just lack info on Nigeria's exports and are living the city life.
Never knew..so it is still very much marketable?
Re: Cocoa Farmers Make More Money On Weaker Naira by rabex123(m): 12:56pm On Nov 07, 2016
ritababe:


ask yourself, you are part of us.
I said Nigeria not Nigerians..
Read well before jumping into conclusions.

19 Likes 1 Share

Re: Cocoa Farmers Make More Money On Weaker Naira by Lasskeey: 12:56pm On Nov 07, 2016
cool
Re: Cocoa Farmers Make More Money On Weaker Naira by 49cents(m): 1:02pm On Nov 07, 2016
Pavore9:
There is no incentive to channel the proceeds through the banking system. There is cool money to be from cocoa in the international market.

Firtus commentus
Re: Cocoa Farmers Make More Money On Weaker Naira by Pavore9: 1:07pm On Nov 07, 2016
49cents:


Firtus commentus

There is no award attached to it! cheesy
Re: Cocoa Farmers Make More Money On Weaker Naira by iykepromotions: 1:09pm On Nov 07, 2016
Not only cocoa farmers, any business you're been paid in dollars now is very encouraging and rewarding. Get trained via this awareness thread; www.Nairaland.Com/3430037/buying-selling-domains-really-profitable
Re: Cocoa Farmers Make More Money On Weaker Naira by Babanick: 1:13pm On Nov 07, 2016
the money will still go into buying imported cocoa products like chocolate.... we should take it a step further at least get to the level of exporting semi-finished cocoa proceeds.

5 Likes 1 Share

Re: Cocoa Farmers Make More Money On Weaker Naira by Bubu4Sea: 1:18pm On Nov 07, 2016
[size=14pt]Excellent, so the South West can go back to their cocoa and leave our oil alone.

Chai, can you imagine our sophisticated South West going to farm
[img]http://image.hotdog.hu/user/11angyalka/magazin/photo-friday-sweet-success-for-cocoa-farmers.tns.jpg[/img]
Well no more oil to drink for them.
Cocoa is now making money grin grin grin

[/size] grin grin grin

4 Likes

Re: Cocoa Farmers Make More Money On Weaker Naira by Slikbae: 1:19pm On Nov 07, 2016
And my dad has over 40 plots of land wasting away. I have told him to start cocoa farming but he won't listen.

10 Likes 3 Shares

Re: Cocoa Farmers Make More Money On Weaker Naira by PapaBrowne(m): 1:23pm On Nov 07, 2016
Cocoa is super duper cool.
Get involved correctly.
Don't just jump in.

1 Like 1 Share

Re: Cocoa Farmers Make More Money On Weaker Naira by heybeemoney(m): 1:23pm On Nov 07, 2016
more blessing

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