Investing in cocoa plantation establishment
Cocoa is one of the most exportable crops in Nigeria that can readily generate export earnings. It is also an investment that will outlive the owners. The implication of this is that an investor in cocoa plantation will reap from the investment for the rest of his/her life.
Uses of cocoa include cocoa butter, cake and liquor, beverage production and also cosmetics. Cocoa by-products can also be used as organic fertilizer and feed for ruminant animals. The cocoa husk and other parts of the cocoa have been proven to be capable of a number of industrial processes such as the use of the husk in livestock feed and soap making, and that of sweeteners in manufacturing of jellies, Jams, Food ingredients, wines, sugary solution etc.
Requirements:
Large expanse of land where the soil is deep, fertile, well aerated and loamy in nature.
Sources of seedlings procurement is also very important. Alternatively, nursery may be prepared separately whenever the seed are pre-planted before transplanting them to the field. It can be grown either from seeds or vegetative breeding commercial plantings are mainly grown from seeds.
Other requirements are black polythene bags, farm implements, shading materials, wind breakers, abundant labour, chemicals (fungicide, Insecticides etc.), processing implements, qualified personnel, some growth hormones and drying facilities.
Market potentials/project justification:
The demand for cocoa is rising steadily and prices are good. It is a good source of foreign exchange. For some time now, cocoa farmers in Nigeria have been smiling due to the boost in non-oil export, which resulted from the abolition of cocoa board by the Federal Government. However, the demand for cocoa beans in the country both for export and domestic uses is in excess of the supply. Moreover, the price of a ton of cocoa beans is now 400percent higher than the price some years back.
The recent deregulation of the economy by the federal government of Nigeria has made cocoa production to gain a very tremendous popularity. This is because of boost given to the non-oils exports. A lot of abandoned cocoa plantations located in some parts of Oyo, Ondo and Ekiti states have been re-activated by their owners. Cocoa is being seen as one of the major sources of foreign exchange earnings! Establishment of cocoa plantation is a life investment in which the investor will continue to get the returns for life.
In view of the above, it has been identified that establishment of cocoa plantation is one of the investment opportunities for Nigerian investors. Not only because of its foreign exchange potentials but also it is a life investment for its owners.
This project is strongly recommended for consideration by investors, investment houses and profit conscious companies including government to create jobs and income for the Nigerian youths.
Projected revenue:
A well maintained cocoa plantation will yield a minimum of two tons of dry seeds per hectare per year starting from the fourth year. This translates to 20 tonnes for 10 hectares. The current selling price of cocoa is N400,000 per ton (minimum).
An annual income of N8 million can be generated from this project with operating expenses put at N2 million per annum. Investors will be making over N6 million on annual basis from the fourth year for several years. Serious minded investors can be assisted in the actualisation of this project.
Email: olumakindeoni2@yahoo.com.
OLUMAKINDE ONI