The Ikom Cocoa Processing Factory has the potential to inject between $400 million and $600 million annually into the coffers of the Federal Government, according to Chief Chris Agara, Chairman of AA Universal Bean and Co. Ltd, the company managing the facility.
Speaking in a telephone conversation over the weekend, Agara underscored the immense economic benefits the cocoa plant could yield if provided with the requisite support and an enabling business environment. He noted that AA Universal Bean and Co. Ltd operates as a joint venture with AA Universal Industries Ltd and is a member of the LR Group of Israel, positioning it as a formidable force in Nigeria’s cocoa industry.
Providing insight into the joint venture, Agara explained that both entities established a Special Purpose Vehicle (SPV) known as AA Universal Bean & Co., dedicated to managing the cocoa value chain.
“This target is achievable if we optimise the factory’s full potential and embrace value addition. Our objective is to halt the export of raw cocoa beans and instead focus on processing them into cocoa butter, cocoa liquor, cocoa powder, and possibly chocolate,” he stated.
Highlighting the vast potential of cocoa production in Ikom, Cross River State, he maintained that harnessing these opportunities could significantly contribute to the economy.
“We have secured a grant agreement with the United States Government through the United States Trade and Development Agency (USTDA). This grant will facilitate a feasibility study and the development of a bankable business plan for cocoa and cassava production, ensuring value addition from farm to table for both local consumption and export.”
Agara further revealed that the company is leveraging expert knowledge to ensure zero waste in its operations. “We collect cocoa pods from farmers, processing what they typically discard into food paste. Additionally, we assist cocoa farmers by providing high-quality pesticides to combat black pod disease and other challenges affecting cocoa production.”
The company, he stated, also utilises sweeteners derived from cocoa juice to produce gluten-free chocolate, thereby diversifying product offerings. “We are committed to paying beyond the premium price currently offered for cocoa beans because we intend to support farmers at all levels,” he assured.
Looking ahead, Agara disclosed plans to establish a farmers’ microfinance bank to ease access to funds for agricultural activities. “Beyond providing essential chemicals, pesticides, and fertilisers, our innovative farming methodologies will enable farmers to achieve yields of up to 3.5 tonnes of cocoa per hectare, a remarkable improvement from the current 400kg per hectare—an eightfold increase,” he noted.
Elaborating on their strategy for improving productivity, he stated, “We will support farmers in regenerating their old farms while also investing in greenfield farms. This approach is based on proven farming protocols successfully implemented in Ecuador, South America.”
Agara also addressed concerns regarding child labour and traceability in cocoa farming. He noted that the company’s decision to off-take cocoa pods directly from farms to processing sites would eliminate traditional labour-intensive practices, thereby ensuring compliance with international labour standards.
“This measure will put to rest concerns about child labour in cocoa farming, as it removes the need for children and women to crack cocoa pods, dry, and ferment them before sale. Our approach ensures that our cocoa farming and production processes meet global ethical standards,” he concluded.
