By Toye Olori
LAGOS, Sep 14 1999 (IPS)

Nigerian cocoa farmers have urged the government to scrap all plans to re-introduce commodity marketing boards which go against the spirit of free trade.

“The last semblance of commodity marketing boards in the world are being currently dismantled in Cote d’Ivoire and Ghana. We cannot afford to swim against the tide,” says the Cocoa Association of Nigeria (CAN).

Leaders of the Cocoa Growers Association (CGA) and the Farmers Congress in the cocoa-producing Ondo State also say they oppose the idea of any type of central body to direct the affairs of cocoa producers in the West African nation.

The re-establishment of a commodity board is being mooted by government as a way to control and ensure a higher quality of cocoa for export.

Samuel Ajayi, chairman of the Ondo State Farmers’ Congress, says that past experience has shown that any type of commodity board would enjoy a price monopoly at the disadvantage of farmers and producers.

“Resuscitating commodity boards is surely going to marginalise and impoverish the cocoa producing states and repress the economic progress of the growers,” Ajayi says.

While austerity and monetary control policies have been in place in Nigeria since the early 1980s, in July 1986, the military government of Ibrahim Babangida introduced a Structural Adjustment Programme (SAP).

The political instability in the 1990s hampered the implementation of economic reform policies and adversely affected international confidence in the Nigerian economy.

Ajayi argues that the country’s agriculture minister “never sought the opinion nor discussed the issue of commodity boards with any of the states that produce exportable commodities…”

Cocoa farmers in Ondo State, which is a major producer of cocoa, have threatened to destroy their plantations and switch to crops like maize.

Of Nigeria’s agricultural crops, only cocoa makes a significant contribution to exports. But due to ageing trees, low producer prices, black pod disease, smuggling, and labour shortages, the country’s share of the world cocoa market has declined.

According to the International Cocoa Organisation, cocoa production fell from 165,000 tonnes to 110,000 tonnes in the period 1988/89-1991/92. By 1997/98, output was put at 155,000 tonnes.

The Cocoa Marketing Board was abolished in 1987. Some analysts argue that this led to a poorer quality of cocoa being produced and an increase in smuggling.

Henry Akinghulugbe, chairman of the CGA, argues that if the government plans to re-create a cocoa commodity organ, its primary concern should be to “ensure quality control of the produce for export purposes”.

Experts say every tonne of Nigerian cocoa arriving on the international market is discounted by 100 U.S dollars, a loss of about 15 million dollars per year, because of the poor quality of exported beans.

Ajibola Daramola, Director of the Nigeria Stored Product Research Institute, explained that good cocoa beans, which are termed “well cured”, have to be fermented for between four and five days.

However, in the rush for quick money, farmers and merchants do not allow for good curing before bagging the produce for export.

Because of the losses due to poor production, some industry experts have advocated for a review of the cocoa export liberalisation policy and a return to a cocoa marketing board.

Excerpt:

By Toye Olori
LAGOS, Sep 14 1999 (IPS)

Nigerian cocoa farmers have urged the government to scrap all plans to re-introduce commodity marketing boards which go against the spirit of free trade.

“The last semblance of commodity marketing boards in the world are being currently dismantled in Cote d’Ivoire and Ghana. We cannot afford to swim against the tide,” says the Cocoa Association of Nigeria (CAN).

Leaders of the Cocoa Growers Association (CGA) and the Farmers Congress in the cocoa-producing Ondo State also say they oppose the idea of any type of central body to direct the affairs of cocoa producers in the West African nation.

The re-establishment of a commodity board is being mooted by government as a way to control and ensure a higher quality of cocoa for export.

Samuel Ajayi, chairman of the Ondo State Farmers’ Congress, says that past experience has shown that any type of commodity board would enjoy a price monopoly at the disadvantage of farmers and producers.

“Resuscitating commodity boards is surely going to marginalise and impoverish the cocoa producing states and repress the economic progress of the growers,” Ajayi says.

While austerity and monetary control policies have been in place in Nigeria since the early 1980s, in July 1986, the military government of Ibrahim Babangida introduced a Structural Adjustment Programme (SAP).

The political instability in the 1990s hampered the implementation of economic reform policies and adversely affected international confidence in the Nigerian economy.

Ajayi argues that the country’s agriculture minister “never sought the opinion nor discussed the issue of commodity boards with any of the states that produce exportable commodities…”

Cocoa farmers in Ondo State, which is a major producer of cocoa, have threatened to destroy their plantations and switch to crops like maize.

Of Nigeria’s agricultural crops, only cocoa makes a significant contribution to exports. But due to ageing trees, low producer prices, black pod disease, smuggling, and labour shortages, the country’s share of the world cocoa market has declined.

According to the International Cocoa Organisation, cocoa production fell from 165,000 tonnes to 110,000 tonnes in the period 1988/89-1991/92. By 1997/98, output was put at 155,000 tonnes.

The Cocoa Marketing Board was abolished in 1987. Some analysts argue that this led to a poorer quality of cocoa being produced and an increase in smuggling.

Henry Akinghulugbe, chairman of the CGA, argues that if the government plans to re-create a cocoa commodity organ, its primary concern should be to “ensure quality control of the produce for export purposes”.

Experts say every tonne of Nigerian cocoa arriving on the international market is discounted by 100 U.S dollars, a loss of about 15 million dollars per year, because of the poor quality of exported beans.

Ajibola Daramola, Director of the Nigeria Stored Product Research Institute, explained that good cocoa beans, which are termed “well cured”, have to be fermented for between four and five days.

However, in the rush for quick money, farmers and merchants do not allow for good curing before bagging the produce for export.

Because of the losses due to poor production, some industry experts have advocated for a review of the cocoa export liberalisation policy and a return to a cocoa marketing board.

Excerpt: