Com-Watch - Issue 37 - June 2014

COMMODITY NEWS
COCOA
Nigeria
Cross River State Plans To Sell 5 Cocoa Farms
Cross River State, Nigeria’s 2nd-largest cocoa grower will sell 5-government-owned farms in a bid to boost production of the
commodity with private investment. Prospective investors have until May 19 to bid on the cocoa farms, which the government
expects to sell before the end of next year. The farms cover 12,129 ha and produce about 50,000 MT annually.
Nigeria, the world’s 4th-largest cocoa producer, will probably will see output jump 10% in 2013-2014 season after higher prices
last year lead to planting of more disease-resistant plants according to the Cocoa Association of Nigeria. The nation plans to
double production to 500,000 tons by next year. The main harvest begins in October and ends in January, while a smaller crop is
collected from March through June.
[Bloomberg 05/05/14]
Output Seen Rising Less Than Expected
Nigeria will probably produce less than originally expected this year as rainfall harms yields in the southeastern part of the country.
The Cocoa Association of Nigeria noted production would increase by a small amount, bur would not match the 10% gain
forecast in January. The government is to distribute fungicides to help farmers deal with the blackpod threat. Nigeria’s recent
measures of distributing fertilizers and early-maturing, high-yielding, disease-resistant beans led the country’s cocoa association
earlier this year to expect a bigger crop. The farm-gate prices for cocoa beans increased 12% to N470,000/t [US$2,892] from
N420,000 in January, which enables more farmers to buy agrochemicals to protect their crops. Nigeria’s main crop begins in
October and ends in January, while the smaller mid-crop season usually begins in March and ends in June. The start and end
dates of the seasons may vary each year depending on the weather.
[Bloomberg 28/05/14]
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