Product Profiles: Cocoa Beans

Description: Cocoa bean (also cacao bean, often simply cocoa and cacao) is the dried and fully fermented fatty seed of Theobroma cacao, from which cocoa solids and cocoa butter are extracted. A cocoa pod (fruit) has a rough leathery rind about 3 cm thick (this varies with the origin and variety of pod). It is filled with sweet, mucilaginous pulp (called 'baba de cacao' in South America) enclosing 30 to 50 large seeds that are fairly soft and pale pink or lavender in color. Seeds usually are white, becoming violet or reddish brown during the drying process. The exception is rare varieties of white cacao, in which the seeds remain white. Historically, white cacao was cultivated by the Rama people of Nicaragua. It provides means of livelihood, sustenance and employment opportunities to over five million Nigerians, In the year 2005 alone, export revenue from the sale of cocoa amounted to US$136.7 million. Nigeria along with Cote d'lvoire and Ghana all in West Africa, account for about 70% of the world's cocoa production.

World Producers: The four major West African cocoa producers are the Ivory Coast, Ghana, Nigeria and Cameroon. The Ivory Coast produces about 43 percent of the world's cocoa. The next largest producer is Ghana with about 14 percent of the world's output. Nigeria produces about 6 percent of the world's cocoa. Outside of West Africa, the major producers of cocoa are Indonesia, Brazil, Malaysia, Ecuador, and the Dominican Republic. Cocoa producers like Ghana and Indonesia have been making efforts to increase cocoa production while producers like Malaysia have been switching to other crops.

Harvest: Cocoa trees reach maturity in 5-6 years but can live to be 50 years or more. During the course of a growing season, the cocoa tree will produce thousands of flowers but only a few will develop into cocoa pods. The typical production pattern is for a large main crop to be followed by a smaller mid crop. In West Africa, the main crop harvest starts in the September-October period and can extend into the January-March period. That is followed by the smaller mid crop harvest which is usually of lower quality than the main crop.

Locations: Cocoa beans is produced in 16 states of the federation namely Ondo, Cross River, Oyo, Osun, Ekiti, Ogun, Edo, Kogi, Akwa Ibom, Delta, Abia, Kwara, Ebonyi, Rivers, Taraba and Adamawa with an annual production of 400,000 metric tonnes however 98% of this is exported. OndoState is the highest cocoa producing State in Nigeria and Idanre is the hub of cocoa Production in the state.

Specifications:

• Moisture                6-8 % 
• Bean Counts        100-115 beans per 100g
• Moulds                   3-5 % 
• Slaty                       4-5 %
• E.Coli                     Negative
• Broken beans       2 -3%
• Impurity                 2-4 %

 Uses: Cocoa seeds are the source of commercial cocoa (cocoa beans), the four intermediate cocoa products (cocoa liquor, cocoa butter, cocoa cake and cocoa powder) and chocolate. Although the market for chocolate is the largest consumer of cocoa in terms of bean equivalent, intermediate products such as cocoa powder and cocoa butter are used in several areas.

Cocoa powder is essentially used as flavor in biscuits, ice cream, dairy drinks and cakes. Apart its use as flavor it is also used in the manufacture of coatings for confectioners or frozen desserts. Cocoa powder is also consumed by the beverage industry for example for the preparation of chocolate milk.

Besides the traditional uses in chocolate manufacture and confectionery, cocoa butter is also used in the manufacture of tobacco, soap and cosmetics. It is also a folk remedy for burns, cough, dry lips, fever, malaria, rheumatism, snakebite and wounds. It is reported to be antiseptic and diuretic.

Export market: Major market destinations for Nigeria's Cocoa are: Netherlands, U.K., France, Germany, Spain, Italy, USA and Japan. Other markets being explored are the emerging economic powers of China and India.

Export Price: The export free on board price of cocoa beans has fluctuated between USD3,000-3,500/MT from January to August 2010.

Local price: The local market price of raw cocoa beans per MT ranges from NGN400,000.00 to NGN500,00.00 to deliver it to Lagos during the season and also when the commodity is off the season.