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How To Start A Lucrative Cocoa Farming Business In Nigeria and Africa: The Complete Guide

Cocoa farming is one of the major agricultural activities in Nigeria and Africa, with Nigeria being the fourth-largest producer of cocoa in the world. In Africa, Ivory Coast, Ghana, Nigeria, and Cameroon are the largest producers of cocoa, accounting for over 70% of the world’s cocoa supply. According to the International Cocoa Organization, Africa produces about 70% of the world’s cocoa beans, and the global cocoa market is expected to continue growing due to increased demand for chocolate and cocoa-based products.

In Nigeria, cocoa is primarily grown in the southwest region, with Ondo, Ogun, and Ekiti states being the major cocoa-producing states. The cocoa industry in Nigeria provides employment opportunities for over 300,000 people, with the potential to create more jobs through value addition and export promotion.

Nigeria has been exporting cocoa beans for over a century and remains a major exporter of cocoa beans, accounting for about 4% of global cocoa bean exports. Cocoa farming has the potential to significantly contribute to Nigeria’s economy, with the country targeting to increase its cocoa production from about 250,000 metric tons to 1 million metric tons annually by 2023.

Despite its potential, cocoa farming in Nigeria and Africa is faced with several challenges, including poor farm management practices, low productivity, diseases, and pest infestations, among others. However, with the right support and investment, cocoa farming can be a viable and profitable business venture for farmers in Nigeria and Africa.

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What Is Cocoa?

Cocoa farming is the cultivation of cocoa trees for the production of cocoa beans, which are used in the production of chocolate and other cocoa-based products. The scientific name of the cocoa tree is Theobroma cacao.

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What Is Cocoa Farming In Nigeria and Africa About?

Cocoa farming, also known as cacao farming, is the cultivation of cocoa trees for the production of cocoa beans, which are used to make chocolate, cocoa butter, and other cocoa-based products. The scientific name for the cocoa tree is Theobroma cacao, which translates to “food of the gods.”

Cocoa farming in Nigeria and Africa is a significant agricultural activity with a long history. The cocoa tree grows best in regions with warm temperatures, high humidity, and consistent rainfall, making Nigeria and other African countries ideal for cocoa farming. Research has shown that optimal cocoa yield can be achieved by planting the trees in well-spaced rows and using organic fertilizer to improve soil fertility.

Cocoa farming is a labor-intensive activity, with farmers needing to perform several activities, including pruning, pest control, and harvesting, to ensure a successful crop. The yield from cocoa farming varies depending on the farming practices and the quality of the soil. However, on average, a cocoa tree can produce between 20-50 pods per year, with each pod containing around 30-40 cocoa beans.

Cocoa farming in Nigeria and Africa is essential for the global cocoa market. According to the International Cocoa Organization, Africa produces around 75% of the world’s cocoa, with Nigeria being the fourth-largest producer in the world. The export of cocoa and cocoa-based products from Nigeria provides a significant economic boost for the country.

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Benefits of Cocoa Farming In Nigeria  and Africa

  • Economic benefits: Cocoa farming is a major contributor to the economy of Nigeria and Africa as a whole, providing income and employment opportunities for millions of people.
  • Diversification of income: Cocoa farming provides an opportunity for farmers to diversify their income sources, reducing their dependence on a single crop or livestock.
  • Soil improvement: Cocoa farming helps to improve soil fertility, as the crop requires a rich, well-drained soil with good organic matter content.
  • Food security: Cocoa farming contributes to food security in Nigeria and Africa, as it provides an important source of income and nutrition for millions of people.
  • Environmental benefits: Cocoa farming can promote biodiversity by providing a habitat for animals and plants.
  • Cultural heritage: Cocoa farming is deeply ingrained in the cultural heritage of Nigeria and Africa, with a rich history and tradition associated with the crop.
  • Health benefits: Cocoa contains flavonoids, which have been linked to a range of health benefits, including improved heart health, reduced inflammation, and improved brain function.
  • Export opportunities: Cocoa is a highly sought-after commodity on the international market, presenting opportunities for farmers to export their produce and earn foreign exchange.
  • Poverty reduction: Cocoa farming can help to reduce poverty in rural communities, as it provides income and employment opportunities for smallholder farmers.
  • Climate resilience: Cocoa farming can improve the resilience of farming communities to the effects of climate change, as it can tolerate a range of environmental conditions.
  • Gender equality: Cocoa farming can contribute to gender equality by providing women with access to land, capital, and training, empowering them to become more self-sufficient.
  • Technology adoption: Cocoa farming is increasingly being adopted by farmers in Nigeria and Africa, with the introduction of new technologies and practices to improve yields and reduce labor costs.
  • Value addition: Cocoa farming presents opportunities for value addition, with the production of cocoa powder, cocoa butter, and chocolate, among other products.
  • Improved livelihoods: Cocoa farming can improve the livelihoods of farmers and their families, providing access to education, healthcare, and other basic needs.
  • Government revenue: Cocoa farming generates revenue for governments through taxes and other levies, contributing to national development.

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Health Benefits of Cocoa

  • Antioxidant properties: Cocoa is rich in antioxidants such as flavanols, which protect cells from oxidative damage caused by free radicals.
  • Improved heart health: Studies have shown that consuming cocoa can help lower blood pressure, reduce inflammation, and improve blood flow to the heart.
  • Reduced risk of stroke: Consuming cocoa has been linked to a reduced risk of stroke due to its ability to improve blood flow and reduce inflammation.
  • Reduced risk of diabetes: The flavanols in cocoa have been shown to improve insulin sensitivity and glucose metabolism, reducing the risk of developing type 2 diabetes.
  • Improved brain function: Cocoa is rich in compounds that can improve brain function, including increased blood flow to the brain and the release of neurotransmitters.
  • Reduced risk of cancer: The flavanols in cocoa have been shown to have anti-cancer properties, reducing the risk of certain types of cancer such as colon cancer.
  • Improved mood: Cocoa contains compounds that can improve mood and reduce symptoms of depression and anxiety.
  • Increased energy: Cocoa contains small amounts of caffeine, which can help increase energy levels and improve mental alertness.
  • Improved digestion: The high fiber content in cocoa can help promote healthy digestion and prevent constipation.
  • Reduced inflammation: The flavanols in cocoa have been shown to have anti-inflammatory properties, reducing inflammation throughout the body.
  • Improved skin health: The flavanols in cocoa can help improve skin health by protecting against sun damage and improving skin hydration and elasticity.
  • Reduced risk of neurodegenerative diseases: The compounds in cocoa have been shown to have neuroprotective properties, reducing the risk of neurodegenerative diseases such as Alzheimer’s and Parkinson’s.
  • Improved dental health: Compounds in cocoa have been shown to have anti-bacterial properties that can help reduce the risk of tooth decay and gum disease.
  • Reduced risk of asthma: The compounds in cocoa have been shown to have anti-inflammatory properties that can help reduce the risk of asthma.
  • Improved immune function: Cocoa contains compounds that can help improve immune function, reducing the risk of infections and illness.

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Business opportunities in cocoa farming in nigeria and africa.

  • Cocoa Bean Exportation: Cocoa farming presents an opportunity to export cocoa beans, which are in high demand in the global market, especially in Europe and North America.
  • Chocolate Production: Cocoa beans are used in the production of chocolate, which is a high-value product that can generate significant profits.
  • Cocoa Butter Production: Cocoa butter is an important ingredient in the cosmetic and pharmaceutical industries, creating opportunities for farmers to produce and sell this valuable product.
  • Cocoa Powder Production: Cocoa powder is used in the food and beverage industry, including the production of chocolate, ice cream, and baked goods.
  • Processing and Packaging: Entrepreneurs can set up cocoa processing and packaging facilities, adding value to the raw product and creating job opportunities.
  • Agro-Tourism: Cocoa farming provides opportunities for agro-tourism, where tourists can visit cocoa farms and learn about the cultivation, harvesting, and processing of cocoa beans.
  • Farm Equipment Sales and Rental: Entrepreneurs can set up businesses that sell or rent out farming equipment, such as sprayers, tractors, and harvesters, to cocoa farmers.
  • Supply of Farm Inputs: Cocoa farmers need various inputs such as fertilizers, pesticides, and other farm inputs, creating opportunities for businesses that supply these inputs.
  • Logistics and Transportation: As cocoa is a perishable product, there is a need for efficient logistics and transportation to move the cocoa beans from the farm to the processing or export facilities.
  • Financing: Cocoa farming requires significant upfront capital, creating opportunities for financial institutions to provide loans and other financial services to cocoa farmers.
  • Research and Development: Researchers and scientists can conduct research and development to improve cocoa farming practices, which can create new products and increase productivity.
  • Training and Education: Cocoa farming presents an opportunity for businesses to provide training and education to cocoa farmers on best practices and new farming techniques.
  • Consulting: Experts in cocoa farming can provide consulting services to cocoa farmers, helping them improve their farming practices and increase yields.
  • Organic Cocoa Farming: There is growing demand for organic cocoa beans, creating an opportunity for farmers to transition to organic farming practices.
  • Value-Added Products: Entrepreneurs can develop value-added products from cocoa beans, such as chocolate spreads, cocoa liqueurs, and cocoa tea. This creates additional revenue streams for farmers and entrepreneurs.
  • Animal Feed: The dried cocoa pod husk is used as animal feed in Nigeria, Africa, and many other parts of the world.

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Facts About Cocoa Farming In Nigeria and Africa

  • Cocoa farming is a major agricultural activity in Nigeria and Africa, with Nigeria being the world’s fourth-largest cocoa producer.
  • Cocoa beans are the raw materials used for producing chocolate, cocoa powder, and other cocoa products.
  • Cocoa farming is a labor-intensive business that requires patience and attention to detail.
  • Cocoa trees grow in areas with warm temperatures, high humidity, and abundant rainfall.
  • Cocoa farming is an important source of income for small-scale farmers in Nigeria and Africa.
  • The planting and harvesting season for cocoa farming varies depending on the region and climate.
  • Cocoa farming is susceptible to pests and diseases, such as black pod, which can significantly reduce yields.
  • The use of organic and sustainable farming practices in cocoa farming can increase yields and improve soil health.
  • The average lifespan of a cocoa tree is about 25 years.
  • The yield of cocoa beans per tree varies depending on the age and variety of the tree, as well as the farming practices used.
  • The majority of cocoa farmers in Nigeria and Africa are smallholders with limited access to credit and market information.
  • The government and non-governmental organizations provide support to cocoa farmers in Nigeria and Africa through training and access to finance.
  • Cocoa farming can contribute to rural development and poverty reduction in Nigeria and Africa.
  • The international market for cocoa products is highly competitive, with demand influenced by factors such as consumer preferences and economic conditions.
  • Cocoa farming can be a profitable business for farmers who implement good farming practices and have access to markets and finance.
  • Cocoa beans have been found to contain high levels of antioxidants, which have been linked to various health benefits.
  • Cocoa farming can help to promote biodiversity by providing habitat for wildlife and supporting the growth of other crops.
  • The cocoa industry is dominated by a few multinational companies, which control the processing and marketing of cocoa products.
  • The price of cocoa beans is volatile and can be affected by factors such as weather conditions, pest and disease outbreaks, and global demand and supply.
  • Cocoa farming requires significant investments in inputs such as fertilizers, pesticides, and labor.
  • There are different cocoa varieties grown in Nigeria and Africa, such as Criollo, Forastero, and Trinitario.
  • Cocoa farming is often intercropped with other crops such as plantain, banana, and yam, which can provide additional income for farmers.
  • The cocoa industry in Nigeria and Africa faces challenges such as low productivity, inadequate infrastructure, and poor access to markets and finance.
  • The processing of cocoa beans into cocoa products such as chocolate, cocoa butter, and cocoa powder is a value-added activity that can generate additional income for farmers and other stakeholders in the cocoa value chain.
  • The cocoa industry in Nigeria and Africa has the potential to contribute significantly to economic growth and development, particularly in rural areas.
  • Cocoa is an essential ingredient for chocolates
  • 70% of the world’s cocoa beans come from four West African countries: Ivory Coast, Ghana, Nigeria, and Cameroon
  • Ivory Coast and Ghana are by far the two largest producers of cocoa
  • Worldwide, 90% of cocoa is grown on small family farms of 2 to 5 hectares, while just 5% comes from large plantations of 40 hectares or more.
  • Cocoa production provides a means of livelihood for between 40 and 50 million farmers, rural workers and their families in major cocoa-producing nations
  • Cocoa trees need to be planted next to tall trees in order to protect them from direct sunlight. This is why cocoa trees are planted amongst mango and papaya trees.
  • It takes 3 to 5 years before the cocoa trees bear fruit. Each Tree produces around 1,000 beans a year .
  • Every stage of cocoa production is done by hand: planting, irrigating, harvesting, fermenting and drying
  • The first chocolate bar was made in 1848
  • Cocoa helps normalize blood pressure Cocoa helps to improve brain health and brain capability
  • Cocoa helps improve cardiovascular health
  • Cocoa helps regulate blood sugar
  • Cocoa butter helps skin healing and moisturizing.
  • Cocoa farming is a great source of employment

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Types Of Cocoa Farming Businesses In Nigeria and Africa

There are different types of cocoa farming businesses in Nigeria and Africa. Here are some of them:

  • Cocoa farming for export: This involves cultivating cocoa beans for export to international markets. The cocoa beans are usually sold to international chocolate manufacturers.
  • Cocoa farming for local consumption: This involves cultivating cocoa beans for local consumption. The beans are processed into cocoa powder, cocoa butter, and other cocoa products for sale in local markets.
  • Organic cocoa farming: This involves cultivating cocoa beans using organic farming methods. The cocoa beans produced are free from pesticides and other harmful chemicals.
  • Cocoa processing: This involves the processing of cocoa beans into cocoa powder, cocoa butter, and other cocoa products. The processed cocoa products can be sold locally or exported to international markets.
  • Cocoa bean trading: This involves buying and selling cocoa beans in local and international markets.
  • Cocoa farm equipment sales: This involves selling equipment used in cocoa farming, such as machetes, pruning shears, and sprayers.
  • Cocoa seedling production: This involves producing and selling cocoa seedlings to farmers who want to start a cocoa farm.
  • Cocoa agroforestry: This involves growing cocoa trees in combination with other crops such as coffee, bananas, and plantains. The practice helps to increase yields and reduce the risk of crop failure.
  • Cocoa farm consulting: This involves providing consulting services to cocoa farmers on how to increase yields and reduce production costs.
  • Cocoa plantation management: This involves managing large-scale cocoa plantations for individuals and companies.
  • Cocoa farm investment: This involves investing in cocoa farming projects or buying shares in cocoa farming companies.
  • Cocoa farm insurance: This involves providing insurance coverage for cocoa farms against crop failure and other risks.
  • Cocoa research and development: This involves conducting research on cocoa farming and developing new cocoa varieties that are resistant to diseases and pests.
  • Cocoa farm financing: This involves providing financing to cocoa farmers to enable them to purchase farm inputs and equipment.
  • Cocoa marketing: This involves marketing cocoa beans and cocoa products in local and international markets.

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Types Of Cocoa Used For Cocoa Farming In Nigeria and Africa

The three main varieties of cocoa plants are Forastero, Criollo, and Trinitario.

1). Criollo (The Rare Bean):

  • The Criollo beans are the finest and rarest form of cocoa beans.
  • They are not bitter and they have a rich taste.
  • The Criollo pods are usually red or purple. The colour of the beans ranges from white to pale pink.
  • The Criollo cocoa is mostly grown in Central & Southern America, the Caribbean islands & Sri Lanka.

2). The Forastero bean:

  • They are commonly referred to as bulk cocoa. They are the most produced cocoa variety in the world, which makes up about 80 – 85% of the world’s total cocoa produce.
  • They are naturally bitter and don’t have a rich taste.  
  • When freshly cut open, the colour of the beans is purple and that of the pod is yellow.
  • They are produced in Ghana, Nigeria, Ivory Coast, New Guinea, Brazil, Malaysia & Indonesia.

3). The Trinitario Beans:

  • They are hybrid cocoa produced from the cross-pollination of Criollo and Forastero beans.
  • Trinitario beans have the robustness & high yield of Forastero beans along with the sublime taste of Criollo beans. 
  • They account for 10% – 13% of global cocoa production.
  • The colour of Trinitario pods varies in shape & colour as it is a hybrid. The beans are white to creamy in colour.
  • Trinitario has the strength of a Forastero bean to fight against diseases and the taste of a Criollo bean.
  • They are also found in the Caribbean islands, Venezuela and Colombia and also in some parts of South-East Asia.

In Nigeria and Africa, the most commonly grown type of cocoa is the forastero cocoa, followed by the trinitario cocoa. The criollo cocoa is not as commonly grown due to its high susceptibility to disease and lower yield compared to the other two types.

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The Planting & Harvesting Seasons For Cocoa In Nigeria and Africa

Cocoa farming in Nigeria and Africa is a seasonal crop with specific planting and harvest periods. The planting season for cocoa farming in Nigeria and Africa usually begins in April and ends in May, while the harvest season usually starts in October and ends in December. The actual timing may vary depending on the location, climate, and other factors.

During the planting season, cocoa seeds are planted in nursery beds before being transplanted to the main farm after about 6-8 months. After planting, the cocoa trees require regular maintenance and attention, including fertilization, weed control, and pest management.

The cocoa harvest season is an exciting time for cocoa farmers as it represents the culmination of months of hard work. During this time, cocoa pods are carefully harvested from the trees, and the cocoa beans are extracted, fermented, and dried. The dried beans are then processed and sold to buyers or processed into cocoa butter, cocoa powder, and other products.

Successful cocoa farming requires careful planning and attention to detail to ensure optimal yields and high-quality beans. Farmers must also be mindful of environmental factors, such as climate change and disease outbreaks, which can impact cocoa production.

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How To Start Cocoa Farming In Nigeria and Africa: Step-By-Step Guide

Cocoa farming is a lucrative agribusiness that involves the cultivation of cocoa trees for the production of cocoa beans used in chocolate and other products. Here is a step-by-step guide on how to start cocoa farming in Nigeria and Africa:

  • Conduct research: Research is crucial to identify the best location, soil type, and climate for cocoa farming. This information will help in choosing the right cocoa variety and deciding on the farm’s size.
  • Land preparation: Clear the land by removing trees, bushes, and stumps. After clearing, plow the land to loosen the soil.
  • Planting: Plant cocoa seeds or seedlings in holes or ridges at a spacing of 3-4 meters between the rows and 2.5-3 meters between the plants.
  • Maintenance: Prune the trees to remove diseased or dead branches, weed the farm regularly, apply fertilizers, and control pests and diseases.
  • Harvesting: Cocoa trees start bearing fruit after 3-4 years. The harvesting season varies depending on the cocoa variety and the location.
  • Post-harvest processing: After harvesting, the cocoa pods are opened, and the beans are extracted, fermented, and dried.
  • Marketing: There is a huge demand for cocoa beans globally, and selling to exporters or chocolate manufacturers can be lucrative.

Starting a cocoa farm requires a significant investment in time and resources, but the returns are worth it. With proper care and management, cocoa farming can be a sustainable and profitable business venture.

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How To Process & Package Cocoa Powder From Cocoa Beans In Nigeria or Africa

Cocoa powder is a highly nutritious product that is derived from cocoa beans. It has several applications, including being used as a flavoring agent in food and beverages, as well as a component of cosmetics and skincare products. Cocoa powder production involves several stages, including bean selection, roasting, grinding, pressing, and pulverizing. Here is a step-by-step guide on how to produce, manufacture, and package cocoa powder in Nigeria and Africa:

  • Bean Selection: The first step in producing cocoa powder is to select high-quality cocoa beans.
  • Roasting: The selected cocoa beans are then roasted at high temperatures to bring out their flavor and aroma.
  • Grinding: The roasted cocoa beans are ground into a fine paste using a mill.
  • Pressing: The cocoa paste is then pressed to separate the cocoa butter from the cocoa solids.
  • Pulverizing: The cocoa solids are then pulverized into a fine powder.
  • Sieving: The cocoa powder is sieved to remove any impurities.
  • Packaging: The final step is to package the cocoa powder in airtight containers.

The process of producing cocoa powder requires specialized equipment and knowledge, and it is essential to follow strict hygiene and safety standards to ensure the quality and safety of the product.

Once the cocoa powder is packaged, it can be sold to wholesalers, retailers, and other businesses that use cocoa powder as a component of their products. Additionally, manufacturers can produce cocoa-based products, such as chocolate bars and beverages, using the cocoa powder.

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Types Of Equipment & Tools Used In The Cocoa Farming Business In Nigeria or Africa

  • Fermentation boxes: After the cocoa pods are harvested, the beans are removed and placed in fermentation boxes for several days. Fermentation is a critical step in the cocoa processing chain as it removes the mucilage from the beans and triggers the development of the chocolate flavor. Fermentation boxes can be made from materials like wood, bamboo, or plastic.
  • Drying racks: After fermentation, the cocoa beans are spread out on drying racks to dry. This can take anywhere from a few days to a week or more, depending on the weather conditions. Drying racks are typically made from bamboo or other materials that allow air to circulate freely around the beans.
  • Roasting machines: Once the beans are dry, they are roasted to bring out the full flavor and aroma of the cocoa. Roasting machines come in a variety of sizes and styles, from small tabletop models to large industrial-scale machines.
  • Grinding machines: After roasting, the cocoa beans are ground into a paste called cocoa liquor. Grinding machines can range from small tabletop models to large industrial-scale machines, depending on the volume of cocoa being processed.
  • Presses: Cocoa liquor is typically separated into two components: cocoa solids and cocoa butter. Presses are used to extract the cocoa butter from the cocoa liquor, leaving behind a dry cocoa cake.
  • Packaging equipment: Once the cocoa beans have been processed into cocoa solids and cocoa butter, they can be packaged and shipped to buyers. Packaging equipment can include bagging machines, sealing machines, labeling machines, and palletizers, depending on the needs of the cocoa producer.

By using these pieces of equipment, cocoa farmers and producers can process, package, and supply cocoa products to meet the demands of the market

Target Market For The Cocoa Farming Business In Nigeria or Africa

  • Global chocolate and confectionery industry: The global demand for cocoa is driven by the chocolate and confectionery industry, which uses cocoa as the primary ingredient for producing various products such as chocolate bars, candies, and baked goods. According to a report by Allied Market Research, the global chocolate market is expected to reach $161.56 billion by 2024, which indicates a high demand for cocoa in the coming years.
  • Local cocoa processing industry: In Nigeria and Africa, there is a growing demand for locally processed cocoa products such as cocoa butter, cocoa powder, and chocolate. This has led to the development of local cocoa processing industries, which provide a ready market for cocoa farmers.
  • Export markets: Africa is a major producer of cocoa, and the continent supplies cocoa beans to the global market. The major export markets for cocoa from Nigeria and Africa include Europe, Asia, and North America. These markets require high-quality cocoa beans that meet international standards.
  • Industrial use: Cocoa is also used in the production of various non-food products such as cosmetics, pharmaceuticals, and beverages. The demand for these products is also a potential market for cocoa farmers.
  • Domestic consumption: Finally, domestic consumption of cocoa-based products such as hot chocolate and cocoa beverages is also a potential market for cocoa farmers in Nigeria and Africa. As the standard of living increases in Africa, more people are consuming chocolate and other cocoa-based products, which creates a growing domestic demand for cocoa.

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How To Sell or Market Cocoa Products In Nigeria or Africa

  • Direct sales to consumers: This involves selling cocoa products directly to consumers through online stores, farmers’ markets, or physical stores.
  • Export to foreign markets: Cocoa farming products can be exported to foreign markets through international trade channels or directly to buyers.
  • Supply to local manufacturers: Cocoa farming products can be sold to local manufacturers who use them as raw materials for their products.
  • Supply to large corporations: Large corporations in the food and beverage industry often require large quantities of cocoa products. Cocoa farmers can supply to these corporations to meet their demand.
  • Processing cocoa butter: Cocoa butter can be extracted from cocoa beans and sold to manufacturers of cosmetic and pharmaceutical products.
  • Production of cocoa liquor: Cocoa liquor is used in the production of chocolate. Cocoa farmers can produce cocoa liquor and sell to chocolate manufacturers.
  • Contract farming: This involves entering into an agreement with a buyer who provides the farmer with the necessary inputs and buys the output at a predetermined price.
  • Farm tours: Cocoa farmers can organize tours of their farms and provide visitors with an insight into the cocoa farming process.
  • Organic certification: Organic certification of cocoa farming products can increase their market value and demand.
  • Social media marketing: Social media platforms like Facebook and Instagram can be used to market cocoa farming products.
  • E-commerce: Cocoa farming products can be sold through e-commerce platforms like Amazon and Jumia.
  • Exhibitions and trade shows: Cocoa farming products can be exhibited at trade shows and exhibitions to reach a wider audience.
  • Supply to hotels and restaurants: Hotels and restaurants require cocoa products for their menus. Cocoa farmers can supply to these establishments.
  • Gift baskets: Cocoa farming products can be packaged in gift baskets and sold to consumers.
  • Specialty stores: Cocoa farming products can be sold in specialty stores that focus on natural and organic products.
  • Branding and packaging: Attractive branding and packaging can increase the market appeal of cocoa farming products.
  • Collaboration with chefs: Cocoa farmers can collaborate with chefs to create unique cocoa-based dishes.
  • Community outreach: Cocoa farmers can engage with the community and organize events to promote their products.
  • Product differentiation: Developing unique cocoa farming products can set them apart from competitors and increase demand.
  • Online advertising: Online advertising through Google Ads and Facebook Ads can reach a larger audience.
  • Product placement: Cocoa farming products can be placed in stores or supermarkets to increase visibility.
  • Sales promotions: Sales promotions like discounts and buy-one-get-one-free offers can increase sales.
  • Packaging for gifting: Cocoa farming products can be packaged in a way that is suitable for gifting.
  • Corporate gifting: Cocoa farming products can be used as corporate gifts for clients or employees.
  • Developing a brand story: A compelling brand story can connect consumers emotionally to the product and increase demand.

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Challenges Of Cocoa Farming In Nigeria and Africa

  • Climate Change: The unpredictable climate changes can affect the growth and production of cocoa.
  • Pests and Diseases: Cocoa is vulnerable to various pests and diseases such as black pod disease, swollen shoot disease, and cocoa mirid.
  • Poor Quality Soil: The quality of soil in some areas is poor, and cocoa can be challenging to grow without proper soil management.
  • High Cost of Fertilizers: The cost of fertilizers can be a significant expense in cocoa farming.
  • Aging Cocoa Trees: Many cocoa trees are reaching their maximum productivity, and farmers need to replace them, which can be an expensive process.
  • Poor Yield: Some cocoa farms have low yields due to poor agricultural practices, disease, and pests.
  • Lack of Access to Credit: Farmers may not have access to affordable credit, making it challenging to invest in their farms.
  • Lack of Mechanization: Many farms rely on manual labor, which can be time-consuming and less efficient.
  • High Transportation Cost: The cost of transporting cocoa from remote areas can be expensive, and poor infrastructure can lead to delays and damage to the product.
  • Lack of Training and Education: Farmers may not have access to training and education on best practices for cocoa farming.
  • Limited Market Access: Farmers may have difficulty accessing markets for their cocoa, especially if they are in remote areas.
  • Competition with Other Crops: Cocoa farmers may face competition from other crops, such as oil palm, that offer better returns on investment.
  • Price Fluctuations: The price of cocoa can fluctuate, making it difficult for farmers to plan and budget for their crops.
  • Political Instability: Political instability and conflict in some areas can disrupt cocoa production and exports.
  • Lack of Infrastructure: Poor roads and limited access to electricity can make it challenging to transport cocoa and process it into finished products.
  • Lack of Access to Technology: Some farmers may not have access to modern farming technology and equipment, which can limit productivity.
  • Water Scarcity: Some areas may have limited access to water, which can impact cocoa growth and production.
  • Land Ownership Issues: Disputes over land ownership can disrupt cocoa production and lead to loss of income for farmers.
  • Lack of Government Support: Some governments may not provide adequate support to cocoa farmers, including access to financing and agricultural extension services.
  • Labor Shortages: Some farms may struggle to find enough labor to harvest cocoa, especially during peak seasons.
  • Gender Inequality: Women may face barriers to accessing land and resources for cocoa farming, limiting their opportunities for income and empowerment.
  • Lack of Access to Markets: Farmers may struggle to access markets for their cocoa due to limited infrastructure and lack of market information.
  • Poor Post-Harvest Handling: Improper post-harvest handling of cocoa can lead to spoilage and reduced quality.
  • Lack of Traceability: The lack of traceability in the cocoa supply chain can make it difficult to ensure ethical and sustainable practices.
  • Environmental Concerns: Cocoa farming can have environmental impacts, including deforestation and soil degradation, which can impact local ecosystems and communities.

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To Sum It Up

In conclusion, Cocoa farming in Nigeria and Africa is a lucrative business that can provide income and improve the economy. The favorable weather conditions, availability of arable land, and government support make Nigeria and Africa an ideal location for cocoa farming. In addition, the high demand for cocoa products, both locally and internationally, creates an opportunity for farmers to export their produce.

Starting a cocoa farm involves a thorough understanding of the planting process, harvesting, and post-harvesting techniques. Farmers should also explore the different varieties of cocoa and choose the ones that are best suited for their region.

While cocoa farming has its challenges, such as pests and diseases, farmers can mitigate these risks by implementing proper pest control measures and staying up-to-date on the latest farming techniques.

Overall, cocoa farming has the potential to generate significant profits for farmers and contribute to the development of local and national economies. With proper planning and execution, cocoa farming can be a rewarding and sustainable business venture in Nigeria and Africa.

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Trying To Secure A Business Loan? Finance? Or Investment? You can now greatly increase your chances of geting the loan/investment you need with our bank and investor ready professional MBA standard business plan writing service Writing a bank and investor ready professional Cocoa farming business plan can be challenging. If you need a professional and affordable business plan service, StartupTipsDaily’s MBA standard professional business plan writing service  is perfect for your small business. All you have to do is request an understanding of your proposed business model, and you’d have a professional MBA standard business plan ready for you in anywhere from 5 to 14 days.  You can click here to get started with using StartupTipsDaily’s professional business plan writing service to create the perfect business plan that’d get accepted anywhere.

What are your thoughts on how to start Cocoa Farming in Nigeria or Africa? Let me know by leaving a comment below.

Stan Edom

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I am actually passionate about starting cocoa business in Nigeria from farming to processing and produce export. Pls I need your guide. I already own a cocoa farm.

Hi Matthew,

You can send an email to [email protected]

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Cocoa Farming in Nigeria

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Cocoa Farming & Processing

Cocoa Farming and Processing – The agricultural sector is a very important sector in the economy of the country. There are various cash crops and agricultural products that are sold and exported from the country but for the purpose of this article, we will be focusing on one and that is Cocoa farming and Processing.

Cocoa is a major cash crop, regarded internationally as one of the most economically important product that agriculture has to offer. It therefore goes without saying that a lot of people invest in the Cocoa business as it is seen as a very good and profitable business venture. Without even conducting any poll, you can tell for yourself that the crop is in huge demand globally as it is the raw material for a lot of favourite beverages, snacks and processed food.

Cocoa Farming

Making investments in the farming of Cocoa is a very profitable one. This is because once the crop is matured and starts yielding, it will continue so for a very long period of time and the farmer will keep selling the produce and making money without going through the stress of planting and waiting for maturity again.

cocoa farming business plan in nigeria

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With all that we discussed so far regarding Cocoa farming, you will not be wrong to refer to it as the goldmine of the agricultural sector.

Focusing on Nigeria, it is no more news that the discovery of oil practically overshadowed most of the other sources of revenue for the country, agriculture included. This has affected many of the farm produce that would usually be exported as a means of generating revenue for the country.

Before the discovery of oil, cocoa was seen as one of the major sources of revenue for the country as it was one of Nigeria’s major export product. But then came the oil boom and all that most people were concerned with was the drilling and exporting of crude oil and its products.

That notwithstanding anyone who decides to go into the cocoa farming business will stand to make a lot of money, especially as the sector now seems grossly untapped. There is no doubt that there is an ever ready market ready to absorb your produce once they are ready. If you have an idea about farming and you are looking for which crops to invest in that will be very beneficial to you in the long run, then you have to seriously consider going into cocoa farming.

Agriculture in Nigeria

To properly discuss cocoa farming in Nigeria, we have to take a look at agriculture in the country generally as well as the agricultural practices that the population engages in. That being said, did you know that at least 70% of the total Nigerian population engages in agricultural practices either directly or indirectly? This spans across subsistence and commercial farming, crop and livestock farming.

This makes for about 41% of GDP of the Nigerian economy. Various administrations have made it a point of duty to encourage Nigerians to engage in farming. This is because it goes a long way in helping to eradicate the issue of poor feeding, and malnutrition. It also serves as a good source of income to the farmers and as a means of generating revenue for the country.

You can say that the efforts are paying off as more and more people are now into agriculture. People have now come to realize that indeed engaging in agriculture is a really profitable venture, one of the reasons being that there is always a ready market for the farm produce.

As we all already know, food is a basic necessity to man so there are always people ready to purchase the farm produce that you bring into the market. In fact despite the number of people engaged in agriculture in the country, you see that it is still not meeting up to demand and a lot of money is still spent every year on food importation into the country. So you see that there is still a lot of room for more people to be involved and that you don’t have to worry about whether or not you’ll be able to sell off your produce because people eat every day.

So what do you say? Will you not rather tap into this amazing opportunity and be on your way to financial freedom? What usually poses as a source of concern to people, who want to go into one business or the other, is the issue of whether or not there is a market for their produce. This will no be an issue if you venture into this part of agriculture because as we said, there is a ready market just waiting for you. The mathematics is actually simple, the demand is high and the production level is not meeting up to demand at the moment, so why wait for later when you can secure your place now.

If you have made up your mind to venture into cocoa farming then there are some things that you have to know. One of which is the history of cocoa farming in Nigeria.

Brief history of cocoa farming in Nigeria

In the nineteenth century, the Portuguese introduced cocoa farming to the Gulf of Guinea. From there, the practice spread to other parts of the continent, Nigeria being one of them. Cultivation of Cocoa began in Nigeria around the 1870s and it started from the Calabar and Bonny areas. Although this was the areas where cocoa cultivation first started in Nigeria, the crop was not doing that great and that was because those areas were not the best for it, this resulted in poor yield.

But the good news was that the practice of cocoa farming kept spreading and by the 1880s it had gotten to the western part of Nigeria. It was not strange to see farms for cocoa in parts of Lagos, Agege and Otta. As cocoa farming kept spreading, people were better understanding the crop and getting to know how to get the best yield, to the point that a lot of the farmers were engaging in cocoa farming in uncultivated forests.

By the 1950s, cocoa farming had indeed flourished and there were mainly two varieties of the cocoa nut available in the country. There was a variety that was imported from Trinidad which was reddish in color, while the second one was imported from the Amazon Basin in Brazil.

This variety gotten from the Amazon Basin in Brazil was usually green and when it gets ripe will turn to yellow. Currently, the largest producers of cocoa in the world are Ivory Coast and Indonesia, while Nigeria comes third on that list.

Although Africa as a continent produces what is actually seen as large amount of cocoa every year, researchers are still of the opinion that it can be better. Nigeria has a lot of potential which can be tapped into with regards to cocoa farming as there are a lot of viable lands for cocoa farming that are just lying waste when they can be put to good use. So if you want to get involved in cocoa farming, you still have ample opportunity to key in. That being said, we will now move on to discuss what you have to do, with regards to setting up your cocoa farm.

What to do in setting up your own cocoa farm

First, you have to select the location of the farm. You cannot just rush into using any available land for your cocoa farming. You have to know the type of land that is best for cocoa farming and use that as a yardstick in selecting the best piece of land for the cocoa farm. Some of the factors that you have to put into consideration in this selection process are the appropriate rainfall and climatic conditions. Of course it also has to be land that you can afford or have the means to purchase.

Another factor you should have in mind is the fact that when cocoa seeds are still at a tender stage, they tend to be very sensitive. Hence they require a great deal of care and nurturing otherwise, they could be easily damaged. This is one of the main reasons why before, cocoa farmers would usually go for uncultivated forests as the forest cover would provide much needed protection for the crops from direct sunrays.

It is important that the crops be shielded from direct sunlight, so have that at the back of your mind when you are selecting land for the farming. Normally, to get the best out of the crops, the area where the farm is situated has to have about 21 to 23 degrees Celsius temperature as well as an average of between 1000 and 2500mm of rainfall every year.

When you are done deciding on the land next thing will be to get your seeds. One of the best places to get your seeds is the International Institute of Tropical Agriculture (IITA) which is located in Ibadan. The International Institute of Tropical Agriculture (IITA) also carries out extensive research on cocoa farming so they are in the best position to offer you advice on the best way to go about the cocoa cultivation to be able to get the most yields.

You can also get the seeds from the local market, but you have to be sure of the quality of seeds before making the purchase. When you are done selecting the land and purchasing the seeds, the next thing is to actually plant the seeds which is best done at the beginning of the rainy season. This is usually between the months of April and May in most parts of Nigeria.

It is very important that before you go into cocoa farming, you conduct really extensive research to know all there is to know about the process. It will not be a good feeling if you go in blind and end up losing all the money that you have invested in the venture. If you cannot do the research by yourself or you can’t easily access materials then you can ask a professional to really put you through.  How well you prepare before going into cocoa farming is a very huge determinant to whether or not you will be successful at it.

What climatic conditions best suit cocoa farming?

Cocoa is actually recognized as a tropical crop. The crop does very well in climates that are at a minimum 18 to 21 degrees Celsius and a maximum of 31 to 33 degrees Celsius. Some of the largest producers of cocoa are between 10N and 10S of the equator. Also adequate rainfall is required for the crops to do well. Areas that do not have adequate rainfall are not ideal for cocoa farming. For best performance, the area that you choose for the cocoa farming should not have rainfall below 1500mm yearly.

Best soil condition for cocoa production

You have to take this very seriously because if you plant your crops in the wrong soil you will have little to no yield no matter the efforts that you put into it. To avoid wasting your time and energy, you have to ensure that you are making use of the best soil so as to get the best results. The soil that will be good for Cocoa farming needs to be rich in nutrients. It also has to be strong enough to hold trees and the reason for this is not far-fetched.

It is because cocoa is not just a plant, but eventually grows to become a tree. Now imagine if the soil/land that you chose does not have the capacity for the cocoa plants to have a strong root system, you will just have been wasting your time, energy, and resources.

More so, the soil needs to have good water retention capacity in addition to a good drainage system. The reason for this is because cocoa plants are very sensitive to low water supply and if the soil does not have good water retention capacity then you will lose all your crops.

Still on what the best soil for cocoa entails, it needs to be rich in organic matter as well as all the required nutrients for good plant growth and yield. The soil also needs to possess a pH of between 5.0 and 7.5. It should equally contain certain anionic and cationic balances.

In addition the exchangeable bases found in the soil should amount to at least a minimum of 35% of the total cation exchange capacity (CEC). Otherwise, you will have nutritional problems to contend with. Also bear in mind that the recommended total nitrogen to total phosphorus ratio has to be around 1.5 for you to get the best performance from the crop.

The different cocoa varieties available

Criollo is still looked upon as a luxury cocoa while the Forastero cocoa is regarded as an ancestor of all cocoa plants. It is not a surprise that the Forastero cocoa is referred to in this manner as about 80% of the world’s cocoa cultivation has some sort of connection to the Forastero cocoa. One known characteristics of Forastero is that it has a less aromatic cocoa flavour, and in some cases can be considered bitter.

You have a very high probability of finding Forastero in Ivory Coast, Ghana and Nigeria. And then there is the Trinitario, which is more of a hybrid of Criollo and Forastero. It originated from Trinidad eventually found its way to Papua New Guinea, Java, Sri Lanka, Samoa, Cameroon as well as Ecuador. It tastes great but a bit bitter.

Recognized cocoa breeding methods

Just as we already discussed earlier in the article, cocoa trees can be cultivated by planting seeds. If you take said seeds from under ripe pods, you are on your way to having very good plants.

For tree cuttings, it should be with five leaves and at least two buds. Proceed to cut the leaves in half and then place it in a pot till the roots appear.

Get a bud from a tree and place it under another tree. Remember to wax the budding patch so as not to have moisture loss. You can cut the bud off when it starts growing under the old tree.

There is no doubt that you have seen from this article, that cocoa farming is a really good venture to go into, if you are in the agricultural niche. There is a ready market and once you have good products, selling them off and bagging your profits will not be an issue at all. So if you have the means to, you can key into it and start getting amazing returns.

By BPN Staff

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How To Start Cocoa Production Business In Nigeria

Cocoa Production

  • Entrepreneurs.ng
  • May 20, 2020

Cocoa production is one of the oldest agricultural businesses in the world. It’s a profitable business with the potential to generate income in different ways. More so, it was one of the main foreign exchange products in the Nigerian economy before the oil boom.

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Despite the oil boom, the demand for cocoa remains high in the global market. This is because it is an essential ingredient for chocolate and other beverages.

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A cocoa tree produces cocoa fruit (cocoa pods) from which cocoa seeds are gotten (cocoa beans). These beans are thereafter processed into cocoa liquor, cocoa butter, cocoa powder, and most popularly, chocolate. In other words, the seed is the goldmine of the cocoa plant.

See Also: How to start rice farming business in Nigeria.

Cocoa production business provides sources of income to 40-50 million farmers, rural workers, and their families in the global South; and for over 90% of farmers in the Ivory Coast and Ghana. Also,70% of the world’s cocoa beans come from West African countries; Ivory Coast, Ghana, Nigeria, and Cameroon.

Altogether, cocoa production is a lucrative business that can serve you for the rest of your life if well managed. In this article, I will take you through every step you need to take to venture in and succeed in the cocoa business.

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Cocoa Production In Nigeria

Cocoa also known as cocoa bean is a dried and fully fermented seed of theobroma cacao from which cocoa solids and cocoa butter are extracted. It is a perennial crop of about 4-8m tall that primarily comes from three tropical regions – West Africa, Southeast Asia and Latin America with Cote d’Ivoire being the single largest producer.

Cocoa is a highly concentrated food providing about 1000 calories per kilogram. It has high nutrient content; about 40% carbohydrates, 40% fat, and 20% protein. Also, it serves as a good source of potassium, magnesium, and iron, and over 7 million tons are consumed in a year.

A cocoa pod contains about 30 – 40 seeds each of which is surrounded by a bitter-sweet white pulp. Then, after it is dried and fermented in the sun, it turns brownish red and then called cocoa bean.

The bean is now used for chocolate, sweets, desserts, medicine, herbs, beverage, drink e.t.c The crushed shells or the pod husks of the cocoa bean are used as a cost-effective, organic fertilizer to help in suppressing weeds, conserving moisture, and minimizing erosion.

Basically, Nigeria is the third largest producer of this product in West Africa. The cultivation is done by many small scale farmers on a farmland of about 2 hectares. It is majorly produced in states like Ondo, Akwa Ibom, Ogun, Cross River, Ekiti, Oyo, Osun, Delta and Edo.

Generally, it is a lucrative venture which requires only a single substantial investment and can serve the owner as long as he lives.

Before you fully begin, there are some basic steps you need to take, which I will highlight in the following paragraphs.

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Every business requires planning; planning for fund, location, creating a vision, human resource, pricing, marketing, e.t.c. If all of these are not settled, it can result in failure. Therefore, it is important to start a cocoa production business by writing a business plan.  

A business plan is a document that contains your business goals, aims, and objectives and how they can be attained. Also, it gives full information about the business and provides direction to achieve the vision.

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For a cocoa production business, your business plan can have the following outline.

  • Executive Summary
  • Product and Pricing
  • Competitors
  • SWOT Analysis
  • Market Research/Strategy
  • Financial Projection

Having a business plan will give you the opportunity to access a bank loan and other financings i.e grant, angel investors, crowdfunding , e.t.c  

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Once the business plan is ready, the next thing is to proceed to register the business with the Corporate Affairs Commission (CAC). You can register as a sole proprietor or a limited liability company.

To do this, you can register online via the CAC company online registration portal or reach out to companies like ReDahlia. ReDahlia makes business registration seamless and gives businesses global visibility.

Thereafter, ensure to pay tax to the appropriate authority and join cocoa producers association for proper regulation.

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Cocoa production business requires a huge amount of money to start. This capital will cover land acquisition, seed purchase, pest control, equipment, harvesting, store set-up, e.t.c.

This is why having a well-written business plan is important. With a business plan, you can approach banks for a loan. Also, you can reach out to friends and families, cooperative societies, angel investors or perhaps speak with persons interested in the business and possibly team up as partners.

Most importantly, as soon as you begin, ensure to set aside some funds for labour, pesticide and other expenses until harvest.

Without much ado, let’s go through the step by step plan on the cocoa production process.

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Step By Step Plan On Cocoa Production

Choose a land.

Forest lands are the best places for a cocoa plantation. This is because the lands are usually covered by rain forest canopy and cocoa is adapted to growing under such a dense rainforest canopy. Besides, it may be cultivated under shaded conditions, e.g Agroforestry.

They grow on land with regular rainfall, water source, and moderate temperature like 30 – 32 ° C (max) and 18-21 ° C(min). Also, the cocoa plant is very sensitive to water deficiency in the soil. Therefore, it should be grown on land with no less than 1000 – 25000mm of rainfall in a year. If they are not grown and nurtured in this kind of environment, they are not likely to develop well.

They require a relatively hot and humid atmosphere as much as 100% in the day and about 70% to 80% at night. Hence, you need a large expanse of land that fulfills this condition.

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Prepare The Soil

Cocoa plant requires a deep, relatively damp soil with the right quality and quantity of nutrients. The soil quality will help the trees grow as intended by nature. One of the ways to ensure this is to have good drainage as well as water retention properties.

Also, the layer of soil should be at least 1.5 meters deep with coarse elements. Also, it should be able to absorb nutrients and must be rich in organic matter of at least 3.5%.

Cocoa is tolerant of acid soils as long as the nutrient content is high enough. This kind of soil makes cocoa trees grow an expansive root system which is beneficial during harvest. Also, it will prolong the lifetime of the trees themselves.

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Decide On The Type of Plant To Grow

There are three main varieties of cocoa seeds that can be grown; the Forastero, Criollo, and Trinitario. Each of these plants has its own pros and cons;

Forastero Cocoa

This is the most used cocoa variety anywhere in the world making up about 80% to 90% of the world’s cocoa production. Over time, it has become a reliable choice that possesses a pleasantly bitter taste. Also, it yields extremely rich harvests.

Criollo Cocoa

Criollo cocoa is the finest and rarest type of cocoa beans. The yield is lower compared to the Forastero cocoa. Growing it can be demanding and tiresome. As a result, it’s not popularly grown in Nigeria. This is because it is less resistant to cocoa plant diseases.

Its products during harvest are usually smaller compared to other kinds of cocoa. But, it sells faster and at higher prices than other cocoa types.

Trinitario Cocoa

This is a hybrid of Forastero and Criollo cocoa type. The aim is to incorporate the harvesting potential of Forastero and the trademarked aroma of Criollo. It is considered to be of much higher quality than Forastero, with higher yields, and more resistant to disease than Criollo.

You can reach out to an agricultural expert to guide you on the best kind of cocoa seed that best fits the land where it would be planted.

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Plant The Seed

Once the seed has been chosen, the next is to plant. For cocoa, the best time for planting is at the beginning of the rainy season between April to May.

To this effect, there are different processes of planting a cocoa seed. It can be done through seeding, budding, cutting and marcotting;

This is the process of growing trees from seeds. After about 15 days of yielding, seeds are taken out of the bean pods and planted into the ground.

This is an uncommon method of planting cocoa but it is also used. First, cocoa buds are plucked from the grown tree and placed under another tree. Then once the new tree begins to develop, the old one can be cut off and the new tree left to grow.

In this situation, the budding patch should be waxed to prevent moisture loss.

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This method requires plant cutting with 2-5 leaves and 1-2 buds to grow cocoa. Then, the leave will be sliced, and the cuttings are placed into a prepared pot with polythene.

As soon as the tree roots begin to grow from the pot, it can be transferred to the plantation.

In marcotting, a strip of bark is removed from the branch and the area covered in sawdust and a polythene bag. As soon as the covered area begins to grow, the branched cut will be planted.

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Maintain The Plant

Cocoa is prone to disease and as such requires care and the use of chemicals to keep the pest and diseases at bay once it has been planted.

Just like every food crop has peculiar pests and diseases that infect them, cocoa plant is not excepted. Some of the cocoa plant diseases are; the black pod disease (a most serious disease in W/Africa), cherelle wilt, and charcoal rot. The pests are; cocoa mirids, mealybug, cocoa pod borer, and frosty pod rot.  

Therefore, once the seed has been planted, routine maintenance must be done for maximum productivity. Weeding, pruning, replacement of dead seedlings, and regeneration of the old cocoa plant should be done.

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After about 4-5 years of manual work and labour, cocoa plantation must have been matured, and can be harvested. This harvesting can take place for years with bulk of fruits coming out in October to February and May to August every year.

First, the ripe seed pods are cut from the trees with cutlass or sticks, then split open with a machete to extract the valuable cocoa beans. However, these beans usually have a strong bitter taste, therefore must be fermented.

Fermentation takes about 4- 5 days to develop the sweet flavour. Thereafter, cocoa beans are dried, cleaned and packaged for sales.

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Uses Of Cocoa

After harvesting, cocoa seeds are packaged, then exported. The importers then roast the seeds and turn it into other products fit for use.

Some of these products are:

Cocoa Butter : A creamy-colored edible vegetable fat with cocoa flavour and aroma extracted from the beans. It makes up more than 50 percent of the weight of cocoa beans and it’s used for chocolate, ointments, moisturizing creams and soaps, toiletries, and pharmaceutical products.

Cocoa Liquor : This is used with other ingredients to produce chocolate. The chocolate can be used as a product on its own or combined with other ingredients to form confectionery products.

Cocoa Powder : Cocoa powder is used as an ingredient for foodstuff such as chocolate flavoured drinks, chocolate flavoured desserts, etc.

In addition, husks of the cocoa pods and the pulp, or sweatings, surrounding the beans are used for the following;

  • For feeding animals
  • For producing soft drinks and alcohol.
  • Fertilizer for cocoa, vegetable and food crops. e.t.c

See Also: How To Start An Export Business In Nigeria

As long as you can produce cocoa beans, selling is never a challenge. This is because there are several intermediaries who can manage your sales while you concentrate on production. They can be cooperative or licensed buying cocoa agents who deal in selling cocoa to exporting firms.

These intermediaries buy the sacks of unprocessed beans and sell them to exporters who then process it. They crush the bean to remove shells, roast, ground and then turn it into finished products.

So, all you need is to reach out to these intermediaries and they will sell your product for you.

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Cocoa production business requires tenacity and years of labour before you can begin to enjoy the benefits. Fortunately, once you labour and endure the waiting period, you are sure of reaping the harvest as long as possible. This is because a plantation can produce more than ten bags and this can be twice in a year.

Besides, it’s a product with global demand. As long as you can commit yourself to it, your profit is sure.

Are you thinking of starting a cocoa business or you have a cocoa plantation? Let’s read your thoughts in the comment.

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4 thoughts on “how to start cocoa production business in nigeria”.

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Good day, is there an institute or proffessional where cocoa production & processing is taught as a full time programe within Nigeria or in Africa ?

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I already have a cocoa plantation that is matured already… How can I get a trusted exporter of my cocoa to other countries and company to sell to with trusted guarantee And lastly What document is needed to sell cocoa (profile)

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Without being a grower in which other aspects of the Cocoa business value chain can an entrepreneur participate.

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Hello Hamadtojani,

If you want us to do that research for you, do write us an email at [email protected] .

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How To Start Cocoa Farming In Nigeria Complete Guide

Eno Johnson

Cocoa is a cash crop that is constantly on an increasing demand globally. It is the second largest foreign exchange earner after crude oil. Nigeria used to be the largest exporters of cocoa in Africa and the world at large far back in the 60’s and 80’s. Oil boom sets in and we pushed Agriculture especially cocoa farming to the background while making room for Cote-d’Ivoire to take over as the major cocoa producers in the globe followed by Indonesia and Ghana.

Over 90% of cocoa produced in Nigeria is exported. Cocoa farming is under utilized and also an under exploited sector. Yet demand keeps increasing that is why entrepreneurs and investors should take this privileged opportunity and invest heavily in this area.

Planting cocoa tree is like cultivating a minting company. It is an asset that will outlive any one. But setting it up is capital-intensive so before you start it will be better you count the cost in other not to hit yourself on the leg, carry out a feasibility report which should be followed by a business plan.

Breaking even in cocoa farming within 3-5 years may not be realizable, considering the operating cost within the space used.

However, to achieve this you have to intercrop cocoa with fast-moving crops that have short live span and can be harvested within a year. It should be running for those years until canopy sets in. When the intercropped produce is sold will make up for the expenses on the cocoa farm.

This post has a step by step guide on how to do cocoa farming successfully.

LAND PREPARATION

Getting a leased farm is not advisable since it is a long time earning. Purchase a cheap farmland in the village and get everything documented and secured. The soil should be slightly acidic and moist with 5.0-7.0 P.H. Clear the land, remove debris and create pathways. Enrich the soil with organic matters if there is need for that; the land should be sandy loam.

Planting of cocoa can be done in 4 ways; nursery, budding, cutting and marcotting. Nursery starts from October-January. Transplanting of cocoa seedlings is done between April-June, when they are 5-6 months old and the rains are regular .

Replanting or replacing of dead seedlings can be done during the 2nd /3rd raining season. Plant seedlings on row for easy movement and operations. 3m (10ft) apart and between rows. The standard spacing of cocoa is 3mx3m.

Budding : this is done by cutting a bud from matured tree and placed under a flap of the bark of another tree. Raffia and wax tapes of transparent plastics are then used to prevent moisture loss. When the bud starts growing the old tree is carefully cut off.

Cutting : in this process the cocoa trees are cut off with about 3-4 leaves and 1-2 buds. The leaves are cut into two equal half and placed inside a pot; until roots starts growing you then transfer them to the main field.

Marcotting : strip of bark is cut from a branch; the area is covered with sawdust and a polythene paper. After some days the root will start growing out from this area. You will then chop the branch off and plant them in the main field.

Cocoa can be intercropped with other crops such as cassava, plantain or any crop that can be harvested within a year. If you are planting plantain or banana trees you will need 8000 suckers for 10 hectares.

Nursery may be difficult for you so buy from already established farmers or agencies such as IITA . Hybrid open pollinated seedling goes for #150, hybrid hand pollinated #200 and budded #500.

FACTORS THAT CAN AFFECT SEEDLINGS

  • An average of 10-20% of seedlings may die due to factors such as;
  • Bad batches of soil
  • Viability etc.
  • You have to keep replacing the dead seedlings until you have a matured farm.

COCOA FRUITING

There is a time difference between fruiting of cocoa and harvesting of the pods. The early maturing variety doesn’t start fruiting in 18 months. It will only bring out flowers and then shed the flowers reason been that the stem is not strong enough to carry about 50 pods of cocoa at that particular time. By the 3rd year when the starts fruiting the number of pods will be less but will keep increasing every passing year.

WEEDING IN COCOA FARMING

Weeding should be done earlier before applying fertilizer. Cocoa farm can be mostly affected by weeds resulting in poor growth and yield.

PEST/INSECTS CONTROL

Spray all pods against black pod disease with suitable fungicides at the beginning of raining season. Use protective gadgets when spraying the chemicals in the farm such as boots, nose masks, goggles etc. Weeds harbours insects, rodents, pest and diseases. Don’t allow weeds anywhere in your farm.

Remove diseased/dead branches from the cocoa trees. Cut off churpons and unwanted vegetative growth (mistletoe and fern) early for trees to form canopy 2.5-3m above ground level. Pluck and remove all pods that are affected by diseases from cocoa plantation on a regular basis.

PRUNING IN COCOA FARMING

Pruning is necessary but be sure to do it well so as not to inflict injury on the tree. It should be done the same way it is done in cashew farming, hibiscus farming and in moringa farming. If you want to learn moringa farming click here

HARVESTING IN COCOA FARMING

Don’t let the pods overripe before harvesting. Just make sure you harvest ripe and mature seeds on time.

Don’t use your hands to pluck off the pods as it can create wounds on the tree. When you delay to break the harvested pod for fermentation it will result in the bean germinating and producing poor quality.

There are two harvesting seasons in a year; light and heavy harvest. Use hard objects to break the pods or hit them against each other. Remove the bean and put them in a clean bowl. Use the traditional basket of heat fermentation methods for 5-6 days. Sun dry them immediately fermentation has completed. Harvesting can continue for more than 50 years.

DRYING OF COCOA

Don’t dry in metallic or iron surface to avoid rust entering. Another reason is to prevent discolouration and loss of flavour. Make sure you select dirt and unwanted debris out from the harvested cocoa before drying. Stay away from containers or bags that has already been used for any other foodstuff so as to avoid contamination.

Place them on a pelletted wood inside jute bags. Don’t put the jute bags on bare floor or close to the wall so that cold would not form mould on them.

The target markets are food and beverage companies, soap making industries, chocolate producing companies etc. A ton of cocoa seeds is sold between 2195-3130USD in International market. Locally cocoa has a standard price of 50kg selling for #55,000.

COST OF SETTING UP 10 HECTARE OF COCOA FARM

This is just an estimate, the cost of setting up cocoa farm varies from location to location. Disclaimer, this cost was few years back, find out the current price in your area. Land clearing #150,000

  • Digging #50 per hole. 12,000 × 50=#60,000
  • An hectare of land will consume 12,000 seedlings
  • Planting #80,000 Cost of seedling #200 per one × 12000=#240,000
  • Weeding 100k for each × 3 times weeding = #300,000
  • Pesticide #4000, you will need 10 bottles

COCOA VARIETIES

Unlike before when we had only two kinds of cocoa varieties cultivated in Nigeria; the Amelonado and Trinitario today so many hybrid varieties are now available. Which produces very fast and are resistant to pest and diseases.

FORASTERO : this is the most popular variety, it is planted globally on an average of 80% and above. They have acidic and bitter taste, strong flavour but can’t be compared to that of Criollo. Their bark is rough and hard. Forastero harvest output is always bountiful.

This is the most common specie that is planted in Nigeria due to the listed characteristics. Amelonado, Calabacilla, Cundeamor etc are Faraster’s sub-species. Of the tree Amelonado is largely planted.

CRIOLLO : it has milk acidic taste but can’t be compared with that of farostero. Their yield is low when compared to forastero. They are more venerable to pests and diseases than other varieties yet more costly than any other variety.

TINITARIO : it is a hybrid seedling derived from the combination of both criollo and forasteros varieties. The plant takes the characteristics of each of the varieties to produce an abundance of cocoa with great aromatic taste.

COCOA PRODUCING STATES IN NIGERIA

The states to buy cocoa from who are the major producers of cocoa in Nigeria are; Ondo, Akwa Ibom, Ekiti, Ogun, Cross River, Delta, Osun, Edo.

In conclusion, cocoa farming business is a lifetime investment that will keep you financially buoyant.

  • cocoa buyers
  • cocoa export
  • Cocoa farming
  • cocoa seedlings
  • cocoa sellers

Eno Johnson

Hi,I would really need to get across with you as it is very urgent,your write up has been most useful since my reading on getting myself equipped about the cocoa business.please try reaching through my mail,and drop your contact….it’s a matter of urgency

@Godwin my number 08035965405

Am impressed with your write up . Pls drop your contact so I can get some other pressing informations from you.thanks

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How to start cocoa farming in Nigeria

[Beginners Guide] How To Start Cocoa Farming In Nigeria

cocoa farming business plan in nigeria

Cocoa farming remains inarguably one of the best agric-business in Nigeria. Cocoa farming and exportation used to be crude oil of Nigeria during the early days of independence.

Cocoa farming remains a lucrative venture in Nigeria because of its high demand by production and manufacturing companies within and outside Nigeria.

To start a cocoa farming business in Nigeria, you must prepare by planning, get farmland, prepare the Farmland, select suitable cocoa seed, plant, /and harvesting, and so on.

How To Start Cocoa Farming In Nigeria Step By Step Guide

Table of Contents

You are making a promising decision by taking a step toward becoming a cocoa farmer. Even though you will have to commit resources and time to the venture, in the long run, it is worth it.

To begin with, we have discussed the steps extensively to start cocoa farming in Nigeria.

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Step 1: Prepare by Planning

I believe planning should come first regardless of the business enterprise you intend to venture in. you can even prepare a business plan if possible. You will need to consider the magnitude of the cocoa farm you want to begin with.

Read Also:  How To Grow Pepper Anywhere In Nigeria [Beginners Guide]

Also, this is the stage where you make your budgets. If you don’t have a sufficient budget, take steps to acquire one if necessary.

Suppose you have a good plan in place. In that case, it will be easy for you to have a guide to follow, a marketing strategy, and insight into the financial implication of cocoa farming.

Step 2: Get farmland.

Once you have prepared your plans, you are ready to embark on a cocoa farming enterprise. The next step is to get farmland where your cocoa plantation will be.

In Nigeria, there are different methods you can employ to get farmland. You can purchase land if you have the money or rent. However, it is best to buy the farmland because cocoa trees produce continuously for many years.

Also, when choosing farmland for cocoa farming, you need to consider a location with steady rainfall and a temperature is at a maximum of 32 degrees.

Step 3: Prepare the Farmland

The following steps are to be taken to prepare the farmland to be fit for farming.

Read Also:  How To Start Cucumber Farming In Nigeria [ Beginners Guide Pdf]

Clear the Farmland

You must clear the farmland and remove native plants, to make the area fit for farming. When clearing the land, you need to consider the density of soil cover and soil type to help conserve topsoil.

When clearing land for cocoa farming, remember that cocoa doesn’t thrive under extreme sunlight and grows poorly under heavy shadows.

During the land clearing stage, you should leave smaller forest trees about 4-meters apart that will serve as covers for cocoa seedlings because cocoa plants prefer to be under forest trees or other crops for shelter from direct light.

Clean and Burn the weeds.

Gather the uprooted unwanted plants together and burn or find any other means of the disposal so that the land can be clean and ready for agricultural activities.

Level the Farmland

Furthering the preparation activities of the farmland is to level the farmland. Cocoa plants grow better when the farmland is leveled and void of bumps and holes. Also, the land will always be evenly irrigated due to the leveled land.

Read Also:  How To Start Beans Farming In Nigeria [Beginners Guide Pdf]

Fumigate the Farmland

Fumigant application comes next as you continue to prepare your farmland. You should apply herbicides to control the growth of unwanted plants and pest and disease infestation.

Step 4: Select Suitable Cocoa Seed

Seed selection is an important process in cocoa farming. Selecting quality seeds will lead to a high yield. There are different cocoa seed varieties available in the market. It would be best if you chose suitable seeds with the right conditions for cultivation and, most importantly, give you a reasonable yield.

It is advisable to go for hybrid seeds that have been treated and can resist pest and disease infestation as well as give you a reasonable yield. Some suitable cocoa seed are criollo, forastero, and trinitario.

Step 5: Planting

Unlike other plants, Nigeria uses different methods to plant cocoa seeds. They are:

Planting cocoa seedlings is a common method. This involves planting seeds inside the soil under a conducive climate that will help the seed germinate.

To plant the seed, you have to open a hole on the leveled ground and place the seed vertically, root end down inside the hole. Cover with dirt to just above the seed’s top.

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This process, also known as grafting, involves cutting the bud of the cocoa tree and placed under a flap of bark on another tree. To prevent soil moisture loss, the budding patch is bound and covered with clear plastic.

The tree on which the cocoa bud is grafted will be cut off once the bud is growing,

Vegetative Propagation

Vegetative Propagation, commonly known as cutting, is another method of planting cocoa seeds. Here, a tree cutting with at least two to three leaves and one or two buds should be placed in a pot and covered with plastic so it can germinate and develop roots.

The germinated plant can then be transplanted on the prepared farmland.

Budding and vegetative propagation allow farmers to choose the quality cocoa plant they want and reduce expenses related to sourcing cocoa trees.

Read Also:  How to Start Rice Farming in Ghana [Complete Guide]

Step 6: Weeding / Pest and Disease Control

After you plant your cocoa seedlings or plant through any of the above methods, you don’t go to rest or relax. It would be best if you protected the plants from their young germination age to full-grown trees from extreme weather. Also, watch out for signs of pests and diseases to tackle them by fumigating the farm.

Also, you have to weed the farm if necessary to eliminate unwanted plants competing with the cocoa tree.

Step 7: Fertilizer Application

You have to apply fertilizer to your farmland so your cocoa tree can grow adequately. Fertilizer application will help boost soil nutrients that will, in turn, improve the healthiness of the plant and as well help combat pests and diseases.

Step 8: Harvesting

The final step is to harvest your cocoa products which are the cocoa pods that contain the ripe beans. However, you will need patience because it takes three to five years for a cocoa tree to grow into a fruiting tree.

The pods grow on the trunk or branches of the tree. You will use a long-handled stick tool to reach the ripe pods, which are often yellowish or greenish-yellowish in color, and cut them down.

Note that all the pods do not ripen simultaneously, so you will have to harvest at intervals.

Step 9: Fermentation and Drying

This is an important post-harvest activity where you will cut open the cocoa pods to extract the beans, which are then kept in boxes and covered for up to seven days. The fermented beans are then dried in the sun and ready to be sold.

How Do I Start A Cocoa Farming Business In Nigeria?

As you know, this material is a step-by-step guide to cocoa farming in Nigeria. Make sure you read through the guide from beginning to the end to get all the necessary information.

How Do You Start A Cocoa Farm?

The steps required how to start a cocoa farm have been discussed above. Ensure you read through and follow the steps accordingly from beginning to end.

The steps include planning, getting farmland, preparing the farmland, clearing the farmland, cleaning and burning the weeds, leveling the farmland, fumigating the farmland, selecting suitable cocoa seed, planting, weeding/pest and disease control, fertilizer application, harvesting, and fermentation and drying.

How Many Years Does It Take To Harvest Cocoa?

Growing cocoa fruits takes time, and you need a lot of patience because it takes about four to five years for a cocoa tree to mature and produce fruit.

How Much is Cocoa Per Acre?

Per acre of land, there are likely to be 400 and 500 cocoa trees.

How Many Bags of Cocoa Can an Acre of Land Produce?

The number of bags you can get from an acre of land where about 400 to 500 cocoa trees have been successfully grown is 25 bags.

Is Cocoa Business Profitable in Nigeria?

The cocoa business has for many decades remained a profitable enterprise in Nigeria. The business guarantees a large harvest with little demand. However, the starting phase can seem daunting but profitable in the end, promising a global market on standby to purchase.

Which State is the Largest Producer of Cocoa in Nigeria?

The state of Ondo in the southwestern region of Nigeria is the largest producing cocoa state. The state produces about 25% of total national production from 14 producing states.

How Much is Cocoa in Nigeria?

Currently, the market price of cocoa in Nigeria is estimated to be 40,000 Naira per metric ton.

Which Town is Cocoa Found in Nigeria?

Cocoa is predominantly grown in fourteen states in Nigeria. They are Ekiti, Ondo, Cross River, Ogun, Akwa Ibom, Delta, Osun, Edo, Delta, Kogi, Kwara, Taraba, Nasarawa, and Oyo.

Where can I get cocoa in Nigeria?

You can get cocoa in the fourteen major producing states earlier mentioned. However, you can get cocoa in any marketplace or purchase it online via eCommerce.

How Many Times Does Cocoa Produce in a Year?

The cocoa tree is likely to yield several times a year. However, in Nigeria, there are two peak production periods per year. There is the main harvest, the cocoa production season, and a smaller harvest where not all of the cocoa trees produce in mass.

From our discussion, it is evident that cocoa farming is profitable. Although the sound of it may seem difficult, the beginning is tough if you venture into it. Still, it remains a promising venture in that you can make profits.

cocoa farming business plan in nigeria

Author: Adewebs

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How To Start Cocoa Farming Business in Nigeria or Africa: Complete Guide

How To Start A Lucrative Cocoa Farming Business In Nigeria Or Africa: Complete Guide | Image: Pixabay

Until the discovery of oil, cocoa was one of the major economic backbones of Nigeria and several other African countries. Today, the narrative isn’t the same, but that does not negate the fact that cocoa business still strives globally.

Cocoa, otherwise known as cacao bean, is the dried and fermented seed of the cocoa tree known as Theobroma cacao. Cocoa is the major source of chocolates, and many other beverages consumed worldwide. The cocoa plant traces back to the Amazon Basin in South America, and is commonly found in countries such as Mexico, Venezuela and Columbia.

Today, cocoa is grown and produced worldwide, specifically in countries around the Equator such as Ivory Coast, Nigeria, Ghana and Cameroon. Global production of cocoa as of 2019/2020 has dropped to 4,824 at a value of $US9,693.10 but has been projected to grow to US$14,819.37 by 2025 at a CAGR of 1.8%. The West African countries account for as high as 70% of global cocoa production. Ghana and Ivory Coast both contribute a combined whopping 50% to global production of cocoa. Ivory Coast remains the largest producer of cocoa. In 2016/2017, the Francophone country churned out over 2 million metric tonnes of cocoa. On the other hand, the United States is the leading importer of cocoa (21% of global importation), followed by Germany and Belgium.

Within the last 10 years, Nigeria has remained among the top 5 producers of cocoa. In 2019, 200,000 metric tonnes of cocoa was produced, valued at $740 million. Cocoa makes up only 2% of Nigeria’s exports, but it remains the third largest export product from Nigeria, behind Crude oil and petroleum gas.

The downward dive in Nigeria’s production of cocoa is caused by several factors including poor policies, limited farming resources for cocoa farmers, among other factors, but the sector holds a lot of promise for the Nigerian industry at large and individual businesspersons if the challenges are attended. Are you looking to start a lucrative cocoa farming business in Nigeria? You will find a detailed guide on how to go about it as you read on.

See Also : How To Start A Lucrative Agricultural Production Business In Nigeria: The Complete Guide

What Is Cocoa?

Also known as ‘cocoa bean’, cocoa is the fermented and dried seed of the cocoa plant mainly grown in West African countries. The seeds are processed when dried for production of chocolates, candies, beverages and beverage drinks.

What Is Cocoa Farming?

Cocoa farming refers to the process of planting and cultivating the cocoa plant for its economically valued products.

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Business Opportunities In Cocoa Farming Business In Nigeria And Around The World

1). chocolate production:.

Chocolate and candy production is one of the many ways cocoa beans are used. It involves the process of making chocolate products out of cocoa. The end products might appear in different forms such as chocolate bars, chocolate candies, chocolate drinks, and so on. The steps often include cleaning, roasting, shelling and grinding, among others. Chocolate products are in high demands in most parts of the world, especially in the USA. Chocolates are consumed both by adults and young ones, hence its constant demand.

2). Beverage And Snacks Production:

Chocolates are also further processed to give end beverage drinks as well as edible snacks packaged by several companies and businesses. Thanks to its yummy taste, cocoa never runs out of demand in all of its forms. It can also be used in the snack production industry for the production of cakes. It is now commonly used as a flavour in other snack foods.

3). Cosmetics Production:

Cocoa is not consumed as edible substances only. The cocoa shell contains skin-friendly substances and antioxidants, which are extracted to make skincare products such as body cream. In addition to its health benefits, the unique smell is another reason for the high demand of cocoa cosmetic products worldwide.

4). Marketing And Distribution Of Cocoa Seeds:

For local farmers and international traders of cocoa, marketing and distribution of cocoa seeds and its by-products is a wonderful business opportunity. A bag of cocoa in Nigeria is valued at about N50,000 or more as of 2020. Distributors and marketers nationwide and worldwide have a field day transporting the cocoa seeds in heavy bags and trucks to areas where they’re processed or exported to countries which demand them.

Facts And Benefits Of Cocoa

  • The term ‘cocoa’ originated from the Nahuatl word “cacahuatl”.
  • Cocoa was introduced to Europe by the Spanish in the 16th century.
  • Cocoa is rich in polyphenols, antioxidants which aid blood flow.
  • The Nitric Oxide in cocoa helps to decrease high blood pressure.
  • Cocoa reduces risks of heart attack and stroke because it is rich in Flavanol.
  • The Flavanol content in cocoa also helps to control brain degeneration.
  • Cocoa has a natural nutrient that stabilizes the mood and increases calmness.
  • Cocoa can reduce type 2 diabetes despite its sugar content.
  • Cocoa reduces inflammation and appetite because it makes you feel full.
  • Côte d’Ivoire, Ghana, Indonesia, Nigeria and Cameroon are the biggest producers of cocoa.
  • In Nigeria, Ondo, Ogun, Akwa Ibom, Ekiti, and Osun states are some of the biggest producers of cocoa in Nigeria.
  • The theophylline substance in cocoa can reduce asthmatic inflammations.
  • Consuming cocoa can improve your skin texture and help you stay hydrated.
  • Cocoa can be added to other foods such as puddings and smoothies.
  • The ancient Mayan people called cocoa ‘the food of the gods’.
  • Cocoa contains micronutrients such as potassium and manganese.
  • Cocoa has been found to prevent the growth of cancer cells.
  • Paradoxically, cocoa helps to maintain good dental health.
  • Cocoa beans were once used as a monetary unit among the Mayans.
  • About 70% of global cocoa production today is from Africa.
  • A cocoa tree stands at about 13 to 26 ft tall.
  • When they attain full maturity, cocoa trees can live for as long as 100 years.

See Also: How To Start A Lucrative Garlic Farming Business In Nigeria: The Complete Guide

Types Of Cocoa

The three major varieties of cocoa are:

1). Criollo Cocoa Bean:

The criollo cocoa bean evolved from the Amazon basin. It gives off a unique flavour but has limited productivity. They are rare and are available in very few countries.

2). Forastero Cocoa Bean:

The Forastero cocoa bean also evolved from the Amazon basin but produces greater yield than the Criollo variety. The seeds are harder, but the taste is rather bland. The forastero cocoa is often used to make non-edible products such as cream while the tastier varieties are used to make chocolates.

3). Trinitario Cocoa Bean:

This variety is considered a product of cross-pollination. They have features of both the criollo variety and the Forastero variety. They are harder than criollo but also tastier than forastero cocoa beans. They also have a higher resistance to diseases and weather factors than the criollo variety.

How To Start A Cocoa Farming Business In Nigeria: Step-By-Step Guide

Starting a cocoa farm in Nigeria requires the following steps:

1). Get A Farmland:

The size of the farmland depends on your budget, but the land must have suitable soil for cocoa farming. It must also be situated in an area with a favourable climate. Prepare the land by clearing, pruning and applying fertilizer to it. Cocoa does not thrive well in a sunny environment, so you must provide shades from other trees for it. More so, it requires an abundance of rainfall of about 100 to 250 cm all year round.

2). Planting And Maintenance:

Typically, you should plant the cocoa nursery between October and January and later transplant within April and June the following year. After planting, take time to weed carefully around the young plant as it grows. Be careful when applying pesticides, so you don’t kill the plant.

3). Harvesting And Processing:

Cocoa takes about three to five years before the first yield. When the pods are mature, you can use a sickle to pluck off the ripe ones carefully. Collect all the plucked pods in a basket and, afterwards, remove the seeds from the pods. After removal, pack the seeds in a box and leave them to ferment for about 5 to 7 days before spreading them in the sun to dry. Drying may take about a week or two, depending on the temperature. After drying, the seeds are ready for distribution and marketing.

See Also: How To Start A Lucrative Orange Juice Production Business In Nigeria: The Complete Guide

Challenges Of Cocoa Farming Business In Nigeria

  • Cocoa requires heavy human labour
  • Difficulty in controlling pest and diseases
  • Lack of access to fertilizers and pesticides
  • Fluctuation in the prices of cocoa
  • Cocoa plant is not weather-tolerant. It cannot withstand hot weather.
  • Limited government assistance for local farmers
  • Difficulty in reaching the international cocoa market.
  • Insufficient storage space for cocoa seeds
  • Poor road networks for distribution and marketing of cocoa.
  • Bush burning in some parts where cocoa farming is done
  • Absence of loan facilities for farmers
  • Absence of legislative aids for dealers in cocoa
  • Environmental hazards such as soil erosion.

See Also : How To Start A Lucrative Orange Farming Business In Nigeria: The Complete Guide

To Sum It Up

Despite the neglect of cocoa in Nigeria, it still forms a significant part of our national revenue. Cocoa has been projected to increase both in yield and value by the year 2025. It would be a wise step both for the government and individual farmers to invest in cocoa farming. If the attention is refocused to cocoa again, the Nigerian economy would be better off.

The cocoa farming business in Nigeria can be a lucrative and profitable venture to start-up, due to its vast market demand and on your ability to build a wide sales network. If you’re looking for a lucrative business to venture into, the cocoa farming business in Nigeria is a great option to explore.

Trying To Secure A Business Loan? Finance? Or Investment? You can now greatly increase your chances of getting the loan/investment you need with our bank and investor ready professional MBA standard business plan writing service. Writing a bank and investor ready professional cocoa farming business plan can be challenging. If you need a professional and affordable business plan service, StartupTipsDaily’s MBA standard professional business plan writing service is perfect for your small business. All you have to do is request an understanding of your proposed business model, and you’d have a professional MBA standard business plan ready for you anywhere within 5 to 14 days. You can click here to get started with using StartupTipsDaily’s professional business plan writing service to create the perfect business plan that’d get accepted anywhere.

What are your thoughts on how to start a cocoa farming business in Nigeria? Let me know by leaving a comment below.

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How to write a business plan for a cocoa farm?

cocoa farm business plan

Writing a business plan for a cocoa farm can be an intimidating task, especially for those just starting.

This in-depth guide is designed to help entrepreneurs like you understand how to create a comprehensive business plan so that you can approach the exercise with method and confidence.

We'll cover: why writing a cocoa farm business plan is so important - both when starting up, and when running and growing the business - what information you need to include in your plan, how it should be structured, and what tools you can use to get the job done efficiently.

Let's get started!

In this guide:

Why write a business plan for a cocoa farm?

  • What information is needed to create a business plan for a cocoa farm?
  • What goes in the financial forecast for a cocoa farm?
  • What goes in the written part of a cocoa farm business plan?
  • What tool can I use to write my cocoa farm business plan?

Being clear on the scope and goals of the document will make it easier to understand its structure and content. So before diving into the actual content of the plan, let's have a quick look at the main reasons why you would want to write a cocoa farm business plan in the first place.

To have a clear roadmap to grow the business

Small businesses rarely experience a constant and predictable environment. Economic cycles go up and down, while the business landscape is mutating constantly with new regulations, technologies, competitors, and consumer behaviours emerging when we least expect it.

In this dynamic context, it's essential to have a clear roadmap for your cocoa farm. Otherwise, you are navigating in the dark which is dangerous given that - as a business owner - your capital is at risk.

That's why crafting a well-thought-out business plan is crucial to ensure the long-term success and sustainability of your venture.

To create an effective business plan, you'll need to take a step-by-step approach. First, you'll have to assess your current position (if you're already in business), and then identify where you'd like your cocoa farm to be in the next three to five years.

Once you have a clear destination for your cocoa farm, you'll focus on three key areas:

  • Resources: you'll determine the human, equipment, and capital resources needed to reach your goals successfully.
  • Speed: you'll establish the optimal pace at which your business needs to grow if it is to meet its objectives within the desired timeframe.
  • Risks: you'll identify and address potential risks you might encounter along the way.

By going through this process regularly, you'll be able to make informed decisions about resource allocation, paving the way for the long-term success of your business.

To get visibility on future cash flows

If your small cocoa farm runs out of cash: it's game over. That's why we often say "cash is king", and it's crucial to have a clear view of your cocoa farm's future cash flows.

So, how can you achieve this? It's simple - you need to have an up-to-date financial forecast.

The good news is that your cocoa farm business plan already includes a financial forecast (which we'll discuss further in this guide). Your task is to ensure it stays current.

To accomplish this, it's essential to regularly compare your actual financial performance with what was planned in your financial forecast. Based on your business's current trajectory, you can make adjustments to the forecast.

By diligently monitoring your cocoa farm's financial health, you'll be able to spot potential financial issues, like unexpected cash shortfalls, early on and take corrective actions. Moreover, this practice will enable you to recognize and capitalize on growth opportunities, such as excess cash flow enabling you to expand to new locations.

To secure financing

Whether you are a startup or an existing business, writing a detailed cocoa farm business plan is essential when seeking financing from banks or investors.

This makes sense given what we've just seen: financiers want to ensure you have a clear roadmap and visibility on your future cash flows.

Banks will use the information included in the plan to assess your borrowing capacity (how much debt your business can support) and your ability to repay the loan before deciding whether they will extend credit to your business and on what terms.

Similarly, investors will review your plan carefully to assess if their investment can generate an attractive return on investment.

To do so, they will be looking for evidence that your cocoa farm has the potential for healthy growth, profitability, and cash flow generation over time.

Now that you understand why it is important to create a business plan for a cocoa farm, let's take a look at what information is needed to create one.

Information needed to create a business plan for a cocoa farm

Drafting a cocoa farm business plan requires research so that you can project sales, investments and cost accurately in your financial forecast, and convince the reader that there is a viable commercial opportunity to be seized.

Below, we'll focus on three critical pieces of information you should gather before starting to write your plan.

Carrying out market research for a cocoa farm

Carrying out market research before writing a business plan for a cocoa farm is essential to ensure that the financial projections are accurate and realistic.

Market research helps you gain insight into your target customer base, competitors, pricing strategies and other key factors which can have an impact on the commercial success of your business.

In particular, it is useful in forecasting revenue as it provides valuable data regarding potential customers’ spending habits and preferences.

Your market research might reveal that there may be a growing demand for organic and fair trade cocoa products. Additionally, it could indicate that consumers may be increasingly looking for sustainable and ethical cocoa products.

This information can then be used to create more accurate financial projections which will help investors make informed decisions about investing in your cocoa farm.

Developing the marketing plan for a cocoa farm

Before delving into your cocoa farm business plan, it's imperative to budget for sales and marketing expenses.

To achieve this, a comprehensive sales and marketing plan is essential. This plan should provide an accurate projection of the necessary actions to acquire and retain customers.

Additionally, it will outline the required workforce to carry out these initiatives and the corresponding budget for promotions, advertising, and other marketing endeavours.

By budgeting accordingly, you can ensure that the right resources are allocated to these vital activities, aligning them with the sales and growth objectives outlined in your business plan.

The staffing and equipment needs of a cocoa farm

As you embark on starting or expanding your cocoa farm, having a clear plan for recruitment and capital expenditures (investment in equipment and real estate) is essential for ensuring your business's success.

Both the recruitment and investment plans must align with the timing and level of growth projected in your forecast, and they require appropriate funding.

A cocoa farm might incur staffing costs such as paying farm workers to tend to the cocoa trees, as well as administrative staff to manage the farm. Equipment costs could include purchasing tools for harvesting, fertilizers, and other materials needed to maintain the farm. Additionally, the farm might need to purchase or rent machinery and vehicles for transportation and storage of the cocoa beans.

To create a realistic financial forecast, you also need to consider other operating expenses associated with the day-to-day running of your business, such as insurance and bookkeeping.

With all the necessary information at hand, you are ready to begin crafting your business plan and developing your financial forecast.

What goes into your cocoa farm's financial forecast?

The financial forecast of your cocoa farm will enable you to assess the profitability potential of your business in the coming years and how much capital is required to fund the actions planned in the business plan.

The four key outputs of a financial forecast for a cocoa farm are:

  • The profit and loss (P&L) statement ,
  • The projected balance sheet ,
  • The cash flow forecast ,
  • And the sources and uses table .

Let's take a closer look at each of these.

The projected P&L statement

The projected P&L statement for a cocoa farm shows how much revenue and profits your business is expected to generate in the future.

projected profit and loss statement example in a cocoa farm business plan

Ideally, your cocoa farm's P&L statement should show:

  • Healthy growth - above inflation level
  • Improving or stable profit margins
  • Positive net profit

Expectations will vary based on the stage of your business. A startup will be expected to grow faster than an established cocoa farm. And similarly, an established company should showcase a higher level of profitability than a new venture.

The projected balance sheet of your cocoa farm

The balance sheet for a cocoa farm is a financial document that provides a snapshot of your business’s financial health at a given point in time.

It shows three main components: assets, liabilities and equity:

  • Assets: are resources owned by the business, such as cash, equipment, and accounts receivable (money owed by clients).
  • Liabilities: are debts owed to creditors and other entities, such as accounts payable (money owed to suppliers) and loans.
  • Equity: includes the sums invested by the shareholders or business owners and the cumulative profits and losses of the business to date (called retained earnings). It is a proxy for the value of the owner's stake in the business.

example of projected balance sheet in a cocoa farm business plan

Examining the balance sheet is important for lenders, investors, or other stakeholders who are interested in assessing your cocoa farm's liquidity and solvency:

  • Liquidity: assesses whether or not your business has sufficient cash and short-term assets to honour its liabilities due over the next 12 months. It is a short-term focus.
  • Solvency: assesses whether or not your business has the capacity to repay its debt over the medium-term.

Looking at the balance sheet can also provide insights into your cocoa farm's investment and financing policies.

In particular, stakeholders can compare the value of equity to the value of the outstanding financial debt to assess how the business is funded and what level of financial risk has been taken by the owners (financial debt is riskier because it has to be repaid, while equity doesn't need to be repaid).

The cash flow forecast

A projected cash flow statement for a cocoa farm is used to show how much cash the business is generating or consuming.

cash flow forecast in a cocoa farm business plan example

The cash flow forecast is usually organized by nature to show three key metrics:

  • The operating cash flow: do the core business activities generate or consume cash?
  • The investing cash flow: how much is the business investing in long-term assets (this is usually compared to the level of fixed assets on the balance sheet to assess whether the business is regularly maintaining and renewing its equipment)?
  • The financing cash flow: is the business raising new financing or repaying financiers (debt repayment, dividends)?

As we discussed earlier, cash is king and keeping an eye on future cash flows an imperative for running a successful business. Therefore, you can expect the reader of your cocoa farm business plan to pay close attention to your cash flow forecast.

Also, note that it is customary to provide both yearly and monthly cash flow forecasts in a business plan - so that the reader can analyze seasonal variation and ensure the cocoa farm is appropriately funded.

The initial financing plan

The sources and uses table or initial financing plan is a key component of your business plan when starting a cocoa farm.

It shows where the capital needed to set up the business will come from (sources) and how it will be spent (uses).

sources and uses table in a cocoa farm business plan

This table helps size the investment required to set up the cocoa farm, and understand how risks will be distributed between the business owners, and the financiers.

The sources and uses table also highlights what the starting cash position will be. This is key for startups as the business needs to have sufficient funding to sustain operations until the break-even point is reached.

Now that you have a clear understanding of what will go into the financial forecast of your cocoa farm business plan, let's have a look at the written part of the plan.

The written part of a cocoa farm business plan

The written part of the business plan is where you will explain what your business does and how it operates, what your target market is, whom you compete against, and what strategy you will put in place to seize the commercial opportunity you've identified.

Having this context is key for the reader to form a view on whether or not they believe that your plan is achievable and the numbers in your forecast realistic.

The written part of a cocoa farm business plan is composed of 7 main sections:

  • The executive summary
  • The presentation of the company
  • The products and services
  • The market analysis
  • The strategy
  • The operations
  • The financial plan

Let's go through the content of each section in more detail!

1. The executive summary

The executive summary, the first section of your cocoa farm's business plan, serves as an inviting snapshot of your entire plan, leaving readers eager to know more about your business.

To compose an effective executive summary, start with a concise introduction of your business, covering its name, concept, location, history, and unique aspects. Share insights about the services or products you intend to offer and your target customer base.

Subsequently, provide an overview of your cocoa farm's addressable market, highlighting current trends and potential growth opportunities.

Then, present a summary of critical financial figures, such as projected revenues, profits, and cash flows.

You should then include a summary of your key financial figures such as projected revenues, profits, and cash flows.

Lastly, address any funding needs in the "ask" section of your executive summary.

2. The presentation of the company

In your cocoa farm business plan, the second section should focus on the structure and ownership, location, and management team of your company.

In the structure and ownership part, you'll provide an overview of the business's legal structure, details about the owners, and their respective investments and ownership shares. This clarity is crucial, especially if you're seeking financing, as it helps the reader understand which legal entity will receive the funds and who controls the business.

Moving on to the location part, you'll offer an overview of the company's premises and their surroundings. Explain why this particular location is of interest, highlighting factors like catchment area, accessibility, and nearby amenities.

When describing the location of your cocoa farm, you could emphasize the potential for a steady climate and access to plentiful resources. The area may also have access to well-developed transportation systems that could enable easy shipping of your cocoa. Additionally, it could be situated close to other farms and agricultural centers that could provide a supportive environment. Lastly, you might mention that it is in a region that could provide access to a large consumer base.

Finally, you should introduce your management team. Describe each member's role, background, and experience.

Don't forget to emphasize any past successes achieved by the management team and how long they've been working together. Demonstrating their track record and teamwork will help potential lenders or investors gain confidence in their leadership and ability to execute the business plan.

3. The products and services section

The products and services section of your cocoa farm business plan should include a detailed description of what your company sells to its customers. 

For example, your cocoa farm might offer a variety of cocoa-based products such as cocoa beans, cocoa powder, cocoa butter, and dark chocolate. Additionally, you may offer freshly-made cocoa-based treats such as cakes, cookies, and pastries. Furthermore, you can offer services such as tours of the farm, educational sessions about the cocoa-growing process, and cocoa-tasting experiences. All of these products and services provide customers with the opportunity to learn more about cocoa and the unique flavors of your cocoa farm.

The reader will want to understand what makes your cocoa farm unique from other businesses in this competitive market.

When drafting this section, you should be precise about the categories of products or services you sell, the clients you are targeting and the channels that you are targeting them through. 

4. The market analysis

When you present your market analysis in your cocoa farm business plan, it's crucial to include detailed information about customers' demographics and segmentation, target market, competition, barriers to entry, and any relevant regulations.

The main objective of this section is to help the reader understand the size and attractiveness of the market while demonstrating your solid understanding of the industry.

Begin with the demographics and segmentation subsection, providing an overview of the addressable market for your cocoa farm, the key trends in the marketplace, and introducing different customer segments along with their preferences in terms of purchasing habits and budgets.

Next, focus on your target market, zooming in on the specific customer segments your cocoa farm aims to serve and explaining how your products and services fulfil their distinct needs.

For example, your target market might include people who enjoy a hot cup of cocoa on a cold winter day. This segment would include people who are looking for a high-quality cocoa to add to their morning cup of coffee, or those who want to create a hot cocoa bar in their home for entertaining purposes. This customer segment might also include individuals who are looking for a unique gift for a special occasion, such as a chocolate lover's birthday.

Then proceed to the competition subsection, where you introduce your main competitors and highlight what sets you apart from them.

Finally, conclude your market analysis with an overview of the key regulations applicable to your cocoa farm.

5. The strategy section

When crafting the strategy section of your business plan for your cocoa farm, it's important to cover several key aspects, including your competitive edge, pricing strategy, sales & marketing plan, milestones, and risks and mitigants.

In the competitive edge subsection, clearly explain what sets your company apart from competitors. This is particularly critical if you're a startup, as you'll be trying to establish your presence in the marketplace among entrenched players.

The pricing strategy subsection should demonstrate how you aim to maintain profitability while offering competitive prices to your customers.

For the sales & marketing plan, outline how you plan to reach and acquire new customers, as well as retain existing ones through loyalty programs or special offers.

In the milestones subsection, detail what your company has achieved thus far and outline your primary objectives for the coming years by including specific dates for expected progress. This ensures everyone involved has clear expectations.

Lastly, in the risks and mitigants subsection, list the main risks that could potentially impact the execution of your plan. Explain the measures you've taken to minimize these risks. This is vital for investors or lenders to feel confident in supporting your venture - try to proactively address any objection they might have.

Your cocoa farm may face a variety of risks. One of the most common risks is unpredictable weather. Unfavorable weather conditions such as heavy rains, high winds, and droughts could damage the cocoa crop and lead to lower yields. Additionally, pests and diseases could also be a risk. Pests such as cocoa pod borer, black pod rot, and mealybugs could cause significant damage to your cocoa crop if not addressed in a timely manner.

6. The operations section

In your business plan, it's also essential to provide a detailed overview of the operations of your cocoa farm.

Start by covering your team, highlighting key roles and your recruitment plan to support the expected growth. Outline the qualifications and experience required for each role and your intended recruitment methods, whether through job boards, referrals, or headhunters.

Next, clearly state your cocoa farm's operating hours, allowing the reader to assess staffing levels adequately. Additionally, mention any plans for varying opening times during peak seasons and how you'll handle customer queries outside normal operating hours.

Then, shift your focus to the key assets and intellectual property (IP) necessary for your business. If you rely on licenses, trademarks, physical structures like equipment or property, or lease agreements, make sure to include them in this section.

You could have key assets such as the land, machinery, and buildings associated with the cocoa farm, as well as the intellectual property associated with the cocoa farm, such as the recipes for the cocoa or the brand associated with it. Additionally, the cocoa farm might have certain proprietary processes or unique technologies that could be considered intellectual property.

Lastly, include a list of suppliers you plan to work with, detailing their services and main commercial terms, such as price, payment terms, and contract duration. Investors are interested in understanding why you've chosen specific suppliers, which may be due to higher-quality products or established relationships from previous ventures.

7. The presentation of the financial plan

The financial plan section is where we will include the financial forecast we talked about earlier in this guide.

Now that you have a clear idea of the content of a cocoa farm business plan, let's look at some of the tools you can use to create yours.

What tool should I use to write my cocoa farm's business plan?

In this section, we will be reviewing the two main options for writing a cocoa farm business plan efficiently:

  • Using specialized software,
  • Outsourcing the drafting to the business plan writer.

Using an online business plan software for your cocoa farm's business plan

The modern and most efficient way to write a cocoa farm business plan is to use business plan software .

There are several advantages to using specialized software:

  • You can easily create your financial forecast by letting the software take care of the financial calculations for you without errors
  • You are guided through the writing process by detailed instructions and examples for each part of the plan
  • You can access a library of dozens of complete business plan samples and templates for inspiration
  • You get a professional business plan, formatted and ready to be sent to your bank or investors
  • You can easily track your actual financial performance against your financial forecast
  • You can create scenarios to stress test your forecast's main assumptions
  • You can easily update your forecast as time goes by to maintain visibility on future cash flows
  • You have a friendly support team on standby to assist you when you are stuck

If you're interested in using this type of solution, you can try The Business Plan Shop for free by signing up here .

Hiring a business plan writer to write your cocoa farm's business plan

Outsourcing your cocoa farm business plan to a business plan writer can also be a viable option.

Business plan writers are experienced in writing business plans and adept at creating financial forecasts without errors. Furthermore, hiring a consultant can save you time and allow you to focus on the day-to-day operations of your business.

However, hiring business plan writers is expensive as you are paying for the software used by the consultant, plus their time, and their profit margin of course.

From experience, you need to budget at least £1.5k ($2.0k) excluding tax for a complete business plan, more if you need to make changes after the initial version (which happens frequently after the initial meetings with lenders or investors).

You also need to be careful when seeking investment. Investors want their money to be used to grow the business, not spent on consulting fees. Therefore, the amount you spend on business plan writing services (and other consulting services such as legal services) needs to be negligible relative to the amount raised.

The other drawback is that you usually don't own the business plan itself: you just get the output, while the actual document is saved in the consultant's business plan software - which makes it difficult to maintain the document up to date without hiring the consultant on a retainer.

For these reasons, outsourcing the cocoa farm business plan to a business plan writer should be considered carefully, weighing both the advantages and disadvantages of hiring outside help.

Ultimately, it may be the right decision for some businesses, while others may find it beneficial to write their business plan using online software.

Why not create your cocoa farm's business plan using Word or Excel?

Using Microsoft Excel and Word (or their Google, Apple, or open-source equivalents) to write a cocoa farm business plan is a terrible idea.

For starters, creating an accurate and error-free financial forecast on Excel (or any spreadsheet) is very technical and requires both a strong grasp of accounting principles and solid skills in financial modelling.

As a result, it is unlikely anyone will trust your numbers unless - like us at The Business Plan Shop - you hold a degree in finance and accounting and have significant financial modelling experience in your past.

The second reason is that it is inefficient. Building forecasts on spreadsheets was the only option in the 1990s and early 2000s, nowadays technology has advanced and software can do it much faster and much more accurately.

And with the rise of AI, software is also becoming smarter at helping us detect mistakes in our forecasts and helping us analyse the numbers to make better decisions.

Also, using software makes it easy to compare actuals vs. forecasts and maintain our forecasts up to date to maintain visibility on future cash flows - as we discussed earlier in this guide - whereas this is a pain to do with a spreadsheet.

That's for the forecast, but what about the written part of my cocoa farm business plan?

This part is less error-prone, but here also software brings tremendous gains in productivity:

  • Word processors don't include instructions and examples for each part of your business plan
  • Word processors don't update your numbers automatically when they change in your forecast
  • Word processors don't handle the formatting for you

Overall, while Word or Excel may be viable options for creating a cocoa farm business plan for some entrepreneurs, it is by far not the best or most efficient solution.

  • A business plan has 2 complementary parts: a financial forecast showcasing the expected growth, profits and cash flows of the business; and a written part which provides the context needed to judge if the forecast is realistic and relevant.
  • Having an up-to-date business plan is the only way to keep visibility on your cocoa farm's future cash flows.
  • Using business plan software is the modern way of writing and maintaining business plans.

We hope that this practical guide gave you insights on how to write the business plan for your cocoa farm. Do not hesitate to get in touch with our team if you still have questions.

Also on The Business Plan Shop

  • In-depth business plan structure
  • Key steps to write a business plan?
  • Free business plan template

Know someone who owns or wants to start a cocoa farm? Share this article with them!

Guillaume Le Brouster

Founder & CEO at The Business Plan Shop Ltd

Guillaume Le Brouster is a seasoned entrepreneur and financier.

Guillaume has been an entrepreneur for more than a decade and has first-hand experience of starting, running, and growing a successful business.

Prior to being a business owner, Guillaume worked in investment banking and private equity, where he spent most of his time creating complex financial forecasts, writing business plans, and analysing financial statements to make financing and investment decisions.

Guillaume holds a Master's Degree in Finance from ESCP Business School and a Bachelor of Science in Business & Management from Paris Dauphine University.

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Executive Summary of Cocoa Farming Business Plan in Nigeria.

Cocoa business Plan

Cocoa Business Plan

PATILAD Cocoa Farm is a new farm that is involved in production, sales and distribution of highly nutritious disease-free cocoa beans, processing into cocoa liquor, cocoa butter, cocoa powder, etc. targeting consumers in Nigeria and the international market. We are located in Ile-Oluji, Ondo state.

The Company           

PATILAD Cocoa Farm is established as a limited liability company owned by Dayo Adetiloye, Adebayo Tijani, and other investors.  The farm is managed and directed by Dayo Adetiloye, a veteran in the Agric. industry with 8 years’ experience and Adebayo Tijani, an experienced Agro-allied specialist with over 15 years’ experience.

Executive Summary of Cocoa Farming Business Plan in Nigeria

Executive Summary of Cocoa Farming Business Plan in Nigeria

To be among the first 3 largest cocoa producer/distributor in Nigeria by the year 2020.

  • To give our customer the very best products and provide excellent customer service so that we may earn their trust and ensure continued business transaction.
  • To provide an excellent, top-notch and safe environment for Cocoa production and processing, storage and distribution.
  • Increase revenue from the sales of cocoa beans and its derivative products to N30000000 over 2 years.
  • To maintain profit margins at 20-25% through close attention to expenses and cost of Cocoa production and processing.
  • To drive awareness and generate sales through mentions in both local print and digital media.

Keys to Success

  • Financial stability for payment of labour, fertilizer, cocoa seed and other variable inputs.
  • Low operating cost and efficient processing techniques.
  • Ensuring an efficient and highly motivated distribution team.
  • Maintenance of good working condition and effective remuneration.
  • Being a member of the Cocoa farmers and marketers Association of Nigeria (CFMAN).
  • Offer consistently quality products.
  • Outstanding customer service.

Products and Services

PATILAD Cocoa Farm will sell healthy, disease-free and highly nutritious cocoa beans. Other products and services include cocoa powder, cocoa tea, cocoa butter, etc. We produce process and package to meet standard organization of Nigeria and international standard. We are concerned about providing products that suit the many use of cocoa beans either for edible or industrial uses

Read Also:  executive-summary-of-groundnut-oil-business-plan-in-nigeria

Today, chocolate is a highly demanded luxury product and an impulsive treat for millions of people around the world. No wonder the global market for chocolate and cocoa beverages is now worth over $100 billion (and growing) every year.

Although the developed and fast developing countries (especially in Europe, Asia and North America) consume over 90% of the chocolate produced every year, chocolate largely exists because of Africa. This is because up to 70% of cocoa, the major ingredient for making chocolate, is grown and harvested in Africa.

Competition

Competitors for PATILAD Cocoa Farm includes renown agricultural produce marketer in and around Ondo state

Executive Summary of Cocoa Farming Business Plan in Nigeria

 PATILAD Cocoa Farm’s competitive edge includes the use of modern production techniques and equipment which turns out high quality products, excellent customer service, the expertise of its founders, etc.

Management Team

Dayo Adetiloye

I have over 10 years’ experience in the Cocoa Production and Processing and processing industry and I have B. Agric from Obafemi Awolowo University Ile-Ife. I also have a master’s degree in business administration MBA from same school. I am in charge of strategy planning for the business.

Adebayo Tijani

I have worked with my father for over 15 years from childhood in which I consistently helped in co-running or managing his farm estate. I have also attended several training and organized workshops where I learnt how to run a Cocoa Production and Processing, processing and distribution firm.

Femi Adeyemi

Femi Adeyemi is a seasoned accounting professional and the designated Accounting Officer for our cocoa processing farm. Armed with a degree in Accounting and specialized certifications, Femi brings a wealth of experience from previous roles in reputable agribusiness firms. Femi’s expertise lies in financial management, budgeting, and risk analysis within the agricultural sector.

Femi is well-versed in the unique financial intricacies of the cocoa processing industry, emphasizing sustainable and ethical financial practices. Proficient in cutting-edge accounting software, Femi ensures streamlined financial processes and real-time insights. With excellent communication skills, Femi fosters collaboration across departments, facilitating seamless operations.

Dedicated to compliance with industry regulations, Femi’s strategic financial planning and continuous improvement mindset contribute to the farm’s growth and stability. Femi’s commitment to sustainability extends to supporting fair trade initiatives. In summary, Femi Adeyemi is a dynamic Accounting Officer, equipped with the skills and knowledge to drive the financial success of our cocoa processing farm while upholding ethical and sustainable standards in the industry.

Management Goal

We will manage the firm to profitability by strategic production, marketing and sales.  We will provide quality assurance in our business by always upgrading our product and services to the taste of time. We will ensure excellence delivery of both products and services by employing more people with production, marketing and exemplary interpersonal communication skill. Our target is to build a team of exceptional goal getters and keep a steading assent of excellent performance.

Executive Summary of Cocoa Farming Business Plan in Nigeria

Financial Considerations

PATILAD Cocoa Farm seeks N5 million in long-term financing to cover start-up costs, equipment, building expenses, and working capital. Funding for the launch of the business is provided primarily by equity from the partners and investors.

The business will reach positive cash flow in its 10th month of operation, allowing for expedited repayment of its loan obligations, as well as for dividends to be paid to the owners.  Revenue will top N63,843,000 and gross margin of about N18,818,050 in the 1 st year of operation.

Read: How to start a Cocoa Farm business in Nigeria

For the remaining part of this business Plan, including the detailed financial analysis, call any of our business plan consultants on 08105636015 or 08076359735 or send me an email at [email protected] .

We help institutions and organizations to write concepts and implement Business Plan and also train on business Plan writing in Nigeria. We can help you write a detail, strong and winning business Plan for any use. Call any of our business plan consultants on: 08105636015, 08076359735 or Send me an email at: [email protected] .

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