Malachy O. Akoroda - World Cocoa Foundation

BoostingtheCompetitivenessofNigeria’sCocoaSectorThroughWeb-working

Malachy O.AkorodaExecutiveDirector,

CocoaResearchInstituteofNigeria,Idi-Ayunre,Ibadan,Nigeria

Typesof

cacaopods

A tree starts to bear when 4-5 years. A mature tree may have 6,000 flowers in a year, yet has 20-50 pods. 1,200 seeds/40 pods/1kg of paste.

Ixcacau

In1519,HernanCortez,34yroldofSpain,landed

Campeche,Tabasco,Mexico.HeandhiscrewmarchedontheAzteccapitalof

Tenochtitlan,andweregreetedbyrulerMontezumawhogavethemplentyofcocoa

beansastoagod.

CortezbroughtcocoatoSpainfromthein1528.ItcametoFernandaPobytheSpanishin1788andbyStraussBanigotoBonny,Nigeriain1874,&Lagos1893.

A tree begins to bear when it is

four or five years old. A mature tree may have 6,000

flowers in a year, yet set only 50-20 pods. About 1,200 seeds (40 pods)

produce 1kg (2.2 lb) of

cocoa paste.

HighPowerofBestQualityDryCocoaBeansinWorldCocoavalueSystems

CocoaasCurrency

West Africa Pound = 20 shillings = 240 pennies, used from 1959 till 1973; replaced in 1973 by the Naira = half of

the W.A. Pound or 100 Kobo.

TheAztecspaidfortheirpurchaseswithcocoabeans,butthecocoabeansthemselveswerenotforsale[FromDocumentinNahuatl fromTlaxcalain1545]

3cacaosubspeciesas% ofworldbeanoutput:Criollo (<5)

Forasteros (>90)Trinitarios (<10)

30%ofharvestlosttoPest&Diseases

Thefour

AfricanCocoaGiantsneedhelpsalways

CountryRank2005 Value$1,000* (Outputtonne)1 Ivory Coast 1,024,339 1,330,0002 Ghana 566,852 736,0003 Indonesia 469,810 610,0004 Nigeria 281,886 366,0005 Brazil 164,644 213,7746 Cameroon 138,632 180,0007 Ecuador 105,652 137,1788 Colombia 42,589 55,2989 Argentina 37,281 48,40510 Papua New Guinea 32,733 42,50011 Malaysia 25,742 33,42312 Dominican Republic 24,646 32,00013 Peru 21,950 28,50014 Venezuela 13,093 17,00015 Sierra Leone 8,472 11,00016Togo 6,547 8,50017 Mexico 6,161 8,00018 Philippines 4,352 5,65019 Republic of the Congo 4,336 5,63020 Solomon Islands 3,851 5,000

Top 20 cacao-producer countries in 2005 (FAO)Cacao trees are grown on 17,000,000 acres (or69,000 km2) worldwide.

*Based on 1999–2001 international prices of $770.2/tonne of beans.

Tensegrity Web,acentercoordinatingspokes-rings

CocoaFarmsas% LGA

Suitable %area farmland % area producing

State area(ha) suitable hectares cocoaha suitable cocoa

1 Ondo 326,000 10.54 149687 23.41 45.92 142 CrossRiver 775,000 25.05 123747 19.36 15.97 123 Edo 485,000 15.68 57259 8.96 11.81 104 Osun 161,000 5.20 106111 16.60 65.91 285 Oyo 189,000 6.11 41447 6.48 21.93 166 Ogun 192,000 6.21 60589 9.48 31.56 197 Ekiti 66,000 2.13 80252 12.55 121.59 128 Kogi 31,000 1.00 10200 1.60 32.90 79 Abia 21,000 0.68 4230 0.66 20.14 410 Kwara 9,000 0.29 3578 0.56 39.76 611 Akwa Ibom 27,000 0.87 1892 0.30 7.01 612 Taraba 356,000 11.51 200 0.03 0.06 413 Delta 360,000 11.64 150 0.02 0.04 614 Adamawa 96,000 3.10 6 0.00 0.01 1

Total 3,094,000 100 639,348 100 20.66 145Mean 221,000 7.14 45,668 7.14 29.61 10.4

SD 219961.2 7.11 51,908 8.12 32.76 7.20CV(%) 99.5 99.5 113.7 113.7 110.6 69.5

Cocoahectares,suitableland,andLGAbyState,2005

……………………………………………………………………………………………..………………………………………………………Aspect Tc-1 Tc-2 Tc-3 Tc-4 Tc-5 Tc-6 Tc-7 Tc-8………………………………………………………………………………………………………………………………………………………Adaptedto: Ms+Hf Ms+Hf Ms+Hf Ms+d Ms+d Ms+Hf Ms+Hf Ms+HfRes.toPhyto- PR mod mod hi+mod mod+m mod+wb hi mod+hm mod+mPodsize L M L M-L M-L L M-L M-LM.no.beans/pod 39 37 41 34 36 39 37 35Meanbeanwt (g) 1.1 1.4 1.1 1.1 1.1 1.1 1.2 1.2C.basequality Acc Sup Sup+F Sup Acc Sup Excel Good+FP.BeanYld (kg/ha)2040 2120 1850 1600 1700 1500 1730 1340………………………………………………………………………………………………………………………………………………………Ms:moistSavanna;Hf:humidforest;Phyto-:Phytophthora;mod:moderate;hi:highly; Podsize:L:large,M:medium;Acc:Acceptable;Sup:Superior;F:flavour quality;m: mirids;d:drierareas;wb:“witchesbroom”diseaseoftheAmericas;hm:highlyresistanttomirids;Excel:excellent.

Aspectsof8newhybridcocoavarieties[CRINTc-series]releasedin2011byCRINforfarmeruseincocoagrowingareasofNigeria.

Potential MeanDryBeanYieldfor8varieties:

1735kg/ha

Month200820092010201120122013 6-yrmean………………………………………………………………………………………………………………………….........January 51,082 34,762 36,896 58,613 24,805 33,250 39,901February 43,282 26,909 37,523 43,071 42,188 32,496 37,578March 20,780 20,983 31,689 30,785 37,954 37,179 29,895April 24,563 26,369 24,329 29,988 30,727 24,944 26,820May 26,046 21,421 26,005 23,227 28,765 23,978 24,907June 19,446 12,100 15,881 10,403 21,310 9,799 14,823July 10,259 18,604 8,159 12,682 10,119 4,527 10,725August 4,902 8,164 9,059 9,969 12,147 8,377 8,770September 10,190 9,495 6,539 13,437 5,333 8,185 8,863October 10,370 23,005 23,092 23,008 16,396 21,823 19,616November 20,200 33,534 41,293 36,638 27,825 27,974 31,244December 29,909 47,229 41,698 45,554 42,726 27,499 39,103

Total 271,030 282,574 302,163 346,377 299,935 259,030 293,518US$/tonne* -- 2275.44 3133.00 2980.00 2391.87 2439.07 2643.88

Nigeria’sCocoaBeanExportbyYears

Cocoajutebags(eachwith64 kg)atawarehouseinAkure,Ondo State.

Ifweplant,space,prune,shade,protect,spray,harvestwell,avoiddamagebyfireorcattle,curbtheft,breakpods,fermentbean,sundry,bag,store,sell,investwell,

ThenAllisWell

MajorDiseasesofCocoa

Cacao is grown in large commercial plantations and small farms, but bulk of the production comes from millions of farmers each with a few trees.Cocoa output rose from 1.5 m t in 1983/84 to 3.5 m t in 2003/04, and 4.3 m t in 2014/15; due almost entirely to expansion in hectares of cocoa farms but not to any higher dry bean yields per hectare.

Nigeriagrinds/usesonly18,000 of240,000tonnes

=7.5%ofalldrybeansproducedannually

Teamof61researchersinlocationsin:France12,USA7,Korea1,Coted’Ivoire1,Brazil1,&Venezuela1.

ThegenomeofTheobroma cacaoofaBelizeanCriollo Variety[Nat.Gen.43(2):101-09,2011]

Venndiagramshowingthedistributionofsharedgene

families amongTheobroma

cacao,Arabidopsisthaliana,Populus

trichocarpa,Glycinemax&Vitis vinifera.

Genefamilyclusters& (NumberofgenesineachGFC)201023,529/28,798 genes=82%arein10chromosomes

76%ofGenome

CocoaWorld,dwindlingfarmerincomes,moredeficitstocks,tropicalpoverty,Rainforestdamage,labour problems,smalltransferofwealthtofarmworkers, hopeforhigherbeanprice.

WorldCocoaConferenceconcludeswithAmsterdamDeclaration.LastUpdatedon15April2015Amsterdam,13June2014—2ndWorldCocoaConference,organizedbytheInternationalCocoaOrganizationandhostedbytheGovernmentoftheNetherlands,concludedtodaywiththeadoptionoftheAmsterdamCocoaDeclaration,highlightingtheprogressmadeintacklingthecocoaindustry’smostseriousproblems.TheConference,whichranthroughouttheweekatthecity’sRAIExhibitionandCongressCentre,attractedover1,400cocoastakeholdersfrom55countriesandfromallpartsofthesector,includingfarmers,traders,processors,chocolatemakersandcivilsocietygroups.AnExhibitionfeatured50standsrepresentingvariouscocoa-relatedorganizationsandcompanies,andaseriesofinteractivesessionsorganizedbyDutch-basedstakeholders.

THURSDAY12June2014.BREAKOUTSESSIONSTrack1 SustainableProduction:TransformingCocoaFarmingintoaViableEconomicActivity.

The cocoa and chocolate industry has raisedconcerns that a lack of supply threatens the futureof the sector, as productivity has not improved overthe years and cocoa farming is not seen as anattractive proposition for the young generation.This session will offer a platform to discuss progressand propose innovative ideas to address this threat,focusing on making the business more financiallyappealing to farmers.

Whenagroupmoves,greatadvancebyasmallset inthegroupmakeslittleprogress,ifanotherset isslowandfarbehindandhastobewaitedfor.Sotoo,therateofanycomplexsetofreactionsdependsonthespeedofthesloweststep ofthemanychemicalreactions.

Thisappliestotheglobal‘CocoaWorld’wherefuturistsandfewmembersadvancewell withhigh-technology/funds butthefarmersaresobackward.This callsforreflectiontolookback.

Akoroda’s ConvoyTheory(India,2006)

Whenwillcocoafarmerseversmile?

Cacaotreeson20%ofsuitablelandinNigeria

44years(1972—2015)

Nigeriacocoabeanexportrosefrom0.0tonne in1874to300,000tonnes in2014over140years.Butmanyyouthsneedtojointhecocoaworldsoonestbeforetheoldtreesdieandfewerarebeingplanted.

Ogunlade (2015)reportsthattreeagegradesinfluencecocoabeanyield

TreePopulationCensus&Age-GradeManagement

100growthfactorsusedinmeta-analysisofNigeria’sCocoaSector

40/100 43/100

Web-WorkingNigeriatheCocoaSectorin

Techno-Economics:WealthofanAverageNigerianCocoaFarmer,20162.0hacocoafarm.Drybeanyieldperyearof500 kg/ha.1tonne output.N1000/kg ofbean.N1,000,000 /year.CostofCocoabeanproduction/yearis:N216,000 /hai.e.N432,000/2.0ha(Lawal 2015).TakehomeisN1,000,000 less N432,000 orN568,000@N460/$forfamilyof5 for365 days=$0.68.

WellbelowpovertylineofWorldBankAdvisedtomanage3ha farmtoescape

NigeriaBureauofStatistics(2012):Nationalhouseholdexpendituresurveyfor2009/2010found:

64.7%spentonfoodand35.5%onnon-fooditems

Samepatternfor2015survey.Soitismightbettertogrowfooditems,NOTCOCOA,ifbeanpriceremainslowandinputscostscontinuetorisehigh.

Scenarios of equivalence of cocoa andcrude oil export sales in Nigeria, 2016Cocoaexport(1000tonnes) 150 200 300Cocoaprice($/tonne) 2000 2500 3000Cocoavalue$m/year 300 500 900Crudeoiloutput(mbpd) 1.5 1.7 2.0Crudeoilprice($/barrel) 30 37 45Crudeoilvalue($m/day) 45.0 62.9 90.0Daysofcrudeoilsales 6.7 7.9 10.0

Tropicalization ofpoverty

Manycocoaproducingcountriesaretoopoortonegotiatebeanpricesandmustbecorneredto

acceptanypriceirrespectiveoftherealitiesvisibleonfaces,bodies,homes&lifestyles ofcocoafarmers

DynamicsofAction orInaction byStakeholdersbasedonmeta-analysis1. Action defeatstalksorplans2. More credit,low interestrates3. SkillsTrainingforStakeholders4. Better LawandOrderinnation5. Higherpricesfordrybeans6. Lower/subsidizedinputscosts7. Non-stop relevantresearches8. LocalizationofworkbyLGAs9. Monitoring,Statistics,Reports10. Coordination:Web-working

MythQuiz:Whatanimalisthis?Whereisthehead?

Thispopularmetaphor ofostrichwithheadinthesandisbelievedtohaveoriginatedwithobservationsofostrichesthatappeartoburytheirheadsinthesand toavoid predators.

Peoplethinkthisbehavior resultsfromthefactthatostrichesaresostupid thattheythinkbyburyingtheirheadswillmaketheminvisible to

predators.Thus,iftheycan'tseethepredators,thenthepredatorscan'tseethem.

Mythsteachlessonswedonotoftenwanttolearn

Whenpeoplesaysomeonehastheirheadburiedinthesand,theyareclaimingthatthepersonisignoringobviousfactsorrefusingtoacceptadvice,hoping thatsimplydenying theexistenceofaproblemwillmakeitgoaway.

LessontheCocoaWorldneedtoconsiderseriouslyispriceofbeansfromthelabours offarmerswhichistheweakestlinkintheweb-working ofnetworks

withinover50nationsthatproducecocoa.

WhatLessontoLearn,evenifweignoreandputheadsinthesand?

Notassweetasabarofchocolate

AncientRomefellwhileelitesparty-edAndthepowerfulfewdidnotgiveanySeriousthoughtstothedetailsofeventsThetopladieswerebathingwithmilkTohavesmoothsoftskinfortheelitesWhilethemajorityoflowerworkingcitizensfindnosecurityofbasicfood

Aretheelitesofthe‘CocoaWorld’behavinglikethoseofancientRome?

DoesHistoryRepeatitself?

ThanksforListening