How to invest in establishment of cocoa plantation
The uses to which cocoa can be put are many. These include, among others, cocoa butter, cake and liquor. Cocoa products are used for beverage production and also cosmetics. Cocoa by-products can also be used as organic fertiliser and feed for ruminant animals. So far, from cocoa pod, only the cocoa beans are economically used. The cocoa husk and the cocoa sweets have been proved 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 are also very important. Alternatively, nursery may be prepared separately whenever the seeds 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 uses to which cocoa can be put to notwithstanding, 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, a tonne of cocoa beans is now selling at 400 percent of the price some years back.
A lot of abandoned cocoa plantations located in some parts of Oyo, Ondo and Ekiti States have been re-activated by their owners. Suddenly, cocoa production is being seen as one of the major sources of foreign exchange earning.
The transformation agenda of the present administration also has a lot of incentives for the establishment and re-generation of cocoa plantations in Nigeria. This is an opportunity for forward-looking investors to utilise. Establishment of cocoa plantation is a life investment in which the investor will continue to get the returns for life.
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.
Financial implication
A 10-hectare plantation has been chosen as a hypothetical plantation for the purposes of this analysis. This has been estimated to cost about N4.6 million broken down as follows:
Projected revenue:
A well-maintained cocoa plantation will yield a minimum of 2 tonnes 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 (minimum per tonne). 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 life. Serious-minded investors can be assisted in the actualisation of this project.
OLUMAKINDE ONI