Economic and regulatory challenges for the Nigerian cocoa processing industry in decline

게시됨 2024년 7월 25일

Tridge 요약

Nigeria's cocoa processing industry is in crisis, operating at just 8% capacity due to economic challenges, high energy costs, multiple taxation, and unfair competition. Only five out of 15 plants are functional, processing 20,000 MT annually. Proposed 2024 export regulations by NAFDAC could further increase costs and bureaucracy. The sector is heavily indebted, with high production costs and limited access to affordable loans. Despite being the world's fourth-largest cocoa producer, Nigeria struggles with declining value addition through processing. Reducing production costs, improving financing access, and reviewing export regulations are crucial for revival.

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원본 콘텐츠

Production Capacity Reduced to 8% Nigeria's cocoa processing industry is facing a significant crisis, currently operating at just 8% of its installed capacity. This critical scenario is the result of worsening economic conditions, which have prevented the full operation of its facilities. Previously, the country had 15 processing plants with a total capacity of 250,000 metric tons (MT), but today only five plants remain in operation, together processing just 20,000 MT per year. Economic Challenges and High Production Costs Felix Oladunjoye, president of the Cocoa Processors Association of Nigeria (COPAN), described the situation as “dire”, highlighting high energy costs, multiple taxation and unfair competition from traders offering lower prices. “The need for working capital has increased five times compared to last year, coupled with other rising production costs,” Oladunjoye said during a press briefing. Furthermore, the industry faces new challenges posed by export regulations ...

출처: Mercado Do Cacau