Nigeria can generate up to $600 million annually from cocoa exports once the Ikom Cocoa Processing Plant becomes fully operational, according to Chris Agara, Chairman of AA Universal Agro Company Limited.
Agara, whose company is the concessionaire of the Cross River State Cocoa Processing Plant, revealed that their partnership with Israeli firm Bean & Co, a member of the LR Group, aims to revolutionize cocoa farming.
By adopting advanced farming techniques, they plan to increase cocoa yield from the current 400kg per hectare to 3.5 tons per hectare.
Speaking in Calabar after Minister of Industry, Senator John Owan Eno, visited the Ikom plant, Agara disclosed that AA Universal Agro and its partners have secured a contract grant agreement with the United States Trade and Development Agency (USTDA).
This agreement will facilitate a feasibility study and business plan to develop Nigeria’s cocoa and cassava value chains for both local consumption and export.
He emphasized that the collaboration would not only enhance productivity but also boost farmers’ earnings.
He noted that a delegation from the Cross River State Government, led by Deputy Governor Peter Odey, had visited Israeli cocoa farms in Ecuador and confirmed the capacity and credibility of the Israeli partners.
Agara highlighted that it took the U.S. government three years to assess AA Universal’s credibility before entering into the agreement, which covers both cocoa and cassava.
The initiative aims to expand Nigeria’s agricultural exports, ensuring direct trade with the U.S. and positioning Nigeria as a key player in the global cocoa market.
Regarding the delayed operations at the Ikom plant, he attributed it to power supply challenges, stating that running the facility on generators would be financially unsustainable.
To address this, AA Universal is constructing a renewable energy plant to provide a stable, independent power source.
Agara stressed the economic impact of cocoa processing, explaining that fully operationalizing the Ikom Cocoa Processing Plant would align with the U.S.-Africa trade agreements (AGOA), ensuring quality-controlled cocoa exports.
He further assured that their approach would eliminate child labor concerns, as their system would offtake cocoa pods directly from farmers, allowing them to focus solely on cultivation.
Calling for government collaboration, Agara emphasized that cocoa is Nigeria’s second-highest export earner and urged the federal government to support the sector.
He advocated for policies ensuring that Cross River State’s cocoa is processed locally, preventing merchants from exporting raw cocoa and ensuring accurate production data for the state.
He also confirmed that within one year, the second processing line at Ikom will be fully installed, positioning Nigeria as a global leader in cocoa production and processing.
