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The recent fall in the global price of cocoa has left farmers in confusion and financial uncertainties as many of them are now indebted to creditors whose capital was hinged on the previous price per kilogrammes.
Many farmers in states like Osun, Ekiti, Ondo including Oyo are lamenting bitterly about the massive crash and according to them, “The crash would affect our livelihoods.”
The farmers claimed that the price reversal—from boom to bust—has left many with significant debt and, in some cases, unable to find buyers for their harvests, resulting in depression and human crisis.
They stated that what began as a windfall for cocoa farmers in 2024 had spiralled into a full-blown income shock, as prices had fallen by over 70 per cent from historic highs, creating fears of mass farm abandonment and a visible human toll at the farm level.
Speaking on the development, Mr Abiodun Joseph, a young cocoa farmer in Owo, Ondo State, said that the sharp decline in the prices of cocoa beans had frustrated and discouraged many young farmers from cocoa farming.
The 39-year-old cocoa farmer lamented that many farmers had abandoned their plantations, with some entering into leasehold, because they could not cope with the high cost of inputs and maintenance.
At a certain point, cocoa prices increased, and everything related to cocoa farming, such as chemicals and labour, increased as well. But now, the price has crashed by about 80 per cent, while input and labour costs are soaring.
“As of January 2025, cocoa was sold for N14,500 per kilogram, but now it has dropped to between N2,500 and N2,000 per kilogram. As of now, it is difficult for an average farmer to cope with the standard of living based on the sharp price decline.
“In addition, it is difficult for any cocoa farmer to embark on capital projects due to the crash in price. The bottom line is that many of us can no longer meet domestic needs, which has led to depression among farmers.
“Many farmers are finding it difficult to maintain their farms to get the desired output. Unfortunately, many young farmers are being discouraged from going further into cocoa farming,” Joseph, who has over 12 years of experience in cultivating cocoa, stated.
Similarly, Mr Olanrewaju Abiodun, a local buying agent in Akure, lamented that the plummeting price has affected everyone in the cocoa business chain, with many dealers going out of business due to losses.
“The sharp price decline is equally affecting the dealers and everyone in the cocoa business chain. As of today, most cocoa dealers are bankrupt, and many are hiding from their creditors. Many dealers are being forced out of the cocoa business due to losses,” he added.
Abiodun advocated the establishment of a National Cocoa Management Board to regulate the sector, stabilise producer incomes, and determine cocoa prices in the country.
