By Agrobroadcast Team
Cocoa farmers across Ondo, Osun, and Ekiti states are facing severe financial hardship following a dramatic crash in cocoa bean prices, a development that has left many struggling with debt, unsold produce, and uncertainty about the future of their farms.
In separate interviews, farmers described the situation as a shift from prosperity to hardship within a short period, noting that what was once a profitable boom in 2024 has now turned into a major income shock.
According to them, cocoa prices have fallen by more than 70 per cent from their peak, raising concerns that many farmers may abandon their plantations.
A cocoa farmer in Owo, Ondo State, Mr Abiodun Joseph, said the sharp drop in prices has discouraged many young farmers, with some already abandoning their farms or leasing them out due to rising costs of chemicals, labour, and farm maintenance.
He explained that during the period when cocoa prices were high, the cost of farm inputs increased significantly. However, despite the recent crash in cocoa prices, the cost of inputs has remained high, worsening farmers’ financial situation.
He noted that while cocoa sold for about N14,500 per kilogram in January 2025, the price has now dropped to between N2,000 and N2,500 per kilogram. According to him, many farmers can no longer afford basic needs, invest in projects, or properly maintain their farms, leading to frustration and depression among farmers, especially young people.
A cocoa buying agent in Akure, Mr Olanrewaju Abiodun, said the price crash has affected the entire cocoa value chain, adding that many produce dealers are now facing bankruptcy and hiding from creditors.
He called for the establishment of a National Cocoa Management Board to help regulate cocoa prices, noting that countries such as Ghana, Cameroon, and Ivory Coast have similar structures to protect farmers.
According to him, many farmers are currently at the mercy of exploitative middlemen who dictate prices.
Another farmer in Ile-Oluji, Mr David Ogunmakinwa, called on the government to provide subsidies on farm inputs such as insecticides and fertilisers to help farmers survive the current crisis. He also advised farmers, especially young ones, to invest wisely and remain committed to cocoa farming despite the current challenges.
In Okitipupa, Mr Kola Akinmoye said many young people from urban areas who ventured into cocoa farming during the boom period have now abandoned the business following the price crash, leaving long-time farmers to bear the losses.
Also speaking, a farmer in Ore, Odigbo Local Government Area, Mr Jimoh Aderinigbe, said many farmers who borrowed money for planting are now heavily indebted and risk losing their livelihoods if support does not come soon. He appealed for government intervention to prevent a humanitarian and economic crisis in cocoa-producing communities.
In Osun State, the Chairman of the Cocoa Growers Association, Mr Adewale Abimbola, said although farmers may not fully understand global market forces that determine cocoa prices, historical trends show that prices usually fluctuate.
He blamed Nigeria’s continued export of raw cocoa and foreign exchange volatility for the instability and called for increased local processing to give farmers better price control. He advised farmers not to destroy their cocoa trees, expressing optimism that prices would rise again.
A cocoa merchant, Alhaji Kolade Afeez, attributed the earlier price increase to weather conditions, global market forces, and heat waves that affected production in major cocoa-producing countries. He said the recent price drop was caused by the appreciation of the naira, which moved from about N1,600 to N1,390 per dollar, as well as increased cocoa production due to many new farmers entering the business during the boom period.
In Ekiti State, a farmer, Mr Moses Ojo, said he lost over N2 million in income this harvest compared to previous years. He explained that he left his teaching job to take over his father’s cocoa farm but is now facing serious financial difficulties due to the price crash.
The State Coordinator of the All Farmers Association of Nigeria (AFAN), Mr Olutayo Owoeye, warned that continued price decline could lead to farmers cutting down cocoa trees and switching to other crops. He also pointed out challenges such as ageing cocoa trees, low yields, and climate change.
An agricultural expert, Mr James Yahaya, described the situation as a market correction following a period of supply shortages that drove prices up. He said the crash was influenced by reduced global demand, inflation, and increased local production. He recommended measures such as minimum price guarantees, commodity boards, farmer cooperatives, contract farming, and forward pricing to protect farmers from future price shocks.
Meanwhile, the Ekiti State Commissioner for Agriculture, Mr Ebenezer Boluwade, said the state government has developed a 10-year plan to position Ekiti among the top three cocoa-producing states in Nigeria. He said the plan includes the distribution of 500,000 improved cocoa seedlings supported by USDA TRACE, a 50 per cent subsidy on agrochemicals and seedlings, free fertiliser for farmers, and the provision of water pumping machines worth N10 million to support 28 cocoa nurseries.
According to him, the state needs about 10 million cocoa seedlings, and nursery operators are currently being trained to meet the target.