Calabar, Feb. 23, 2025 (Naija247news) – The Ikom Cocoa Export Processing Plant in Cross River State has the potential to generate N900 billion ($600 million) annually when fully operational, according to A A Universal Agro Company.
Thank you for reading this post, don't forget to subscribe!The company’s Managing Director, Chris Agara, made this disclosure in an interview, highlighting the firm’s partnership with Israeli company B and Co, a member of the LR Group, to revitalize Nigeria’s cocoa industry.
Boosting Cocoa Yield and Economic Impact
Agara stated that his company has secured a contract grant agreement with the United States Trade and Development Agency (USTDA) to conduct a feasibility study and develop a bankable business plan for cocoa and cassava farming.
By adopting advanced agricultural protocols, cocoa yields could increase from 400kg per hectare to 3.5 tons per hectare, a move that would significantly enhance local production and exports.
He called on the Federal Government to provide guarantees that would facilitate access to funding from international financial institutions.
“We need the Federal Government’s backing to secure this funding. Additionally, we need policies from the state government to ensure Cross River’s cocoa is processed within the state instead of being taken out by merchants,” he said.
Expanding Nigeria’s Cocoa and Cassava Trade
The partnership with the US government extends beyond cocoa, as cassava is also a key focus due to its multiple industrial applications. Agara noted that processed cassava products such as industrial starch, pharmaceutical pellets, and cassava flour are in high demand in the US and Europe.
“This initiative will create an opportunity for Nigeria to engage directly with the US on agricultural trade, particularly in cocoa and cassava, which is currently restricted,” he explained.
He emphasized that the project could boost Nigeria’s balance of trade and strengthen the agricultural export sector.
Overcoming Power Challenges for Full Operations
While the first production line of the Ikom Cocoa Processing Plant has been test-run using a generator, Agara revealed that the lack of reliable power supply has delayed full operations.
“Running the plant on diesel would result in a 1000% production cost increase, making operations unsustainable. That’s why we are constructing a renewable energy plant to ensure independent power supply,” he explained.
The second phase of the project will integrate renewable energy solutions, ensuring a cost-effective and sustainable production process.
Agara assured that once the plant is fully operational, it will reduce labor-intensive cocoa processing, benefiting local farmers and enhancing Nigeria’s global cocoa competitiveness.
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