AKURE (CU)_In December last year, Nigerian agribusiness firm Johnvents Industries commissioned its upgraded cocoa processing plant in the city of Akure, in Ondo State. The fully-automated factory has a processing capacity of 15,000 metric tonnes of raw cocoa, crushing it into cocoa butter, liquor, cake and powder. Now the plant is seeking to boost Nigeria’s foreign exchange reserves through cocoa exports.
John Alamu, the Group Managing Director of CapitalSage Holdings, the parent company of Johnvents Industries, recently said during an interview that with the factory’s pilot export valued at $1 million, adequate forex could be generated for the West African nation through cocoa exports. “Our first export is over a $1 million and we are exporting both powder and cake. This firm is contributing to the economy in so many ways. One is the aspect of FX generation. Nigeria needs more exports to balance our foreign exchange reserve, and this factory will be contributing majorly to that,” he said.
Over the recent years there has been a sharp decline in production of cocoa in Nigeria, reaching 210,000 metric tons in 2017, according to the International Cocoa Organisation. Despite increasing demand for the product, the African nation is fourth among global cocoa-producing companies, the ICCO said. Nevertheless, Alamu reaffirmed the new factory’s commitment to boost manufacturing and export of the product in Nigeria.
“We have to keep the factory running despite challenges. It is a 24-hour running factory. So, we have to keep it running no matter the costs,” he said. “For the raw materials, we have no choice but to respond to what the market demands. We pay a premium but the unfortunate thing is that the price in the international market is not increasing as the raw materials are increasing.”
He went on to reveal that the company responds to price fluctuations in the global cocoa market by producing and storing up the product while monitoring the market price to determine when is the best to time sell some. “However, we are ready for our first export,” Alamu added. “I would like to mention that although the export price at the international market has dropped the local market price for cocoa powder has increased significantly, which is quite unusual. So, that is helping to bridge the gap for the reduction in price at the international market.”
