At the National Cocoa Summit and Award held in Abuja, the National President of Cocoa Farmers Association of Nigeria (CFAN), Mr Adeola Adegoke, reported cocoa farmers lost N55 billion yearly.
Adegoke said the loss was as a result of unregulated and total liberalisation of the cocoa industry.
“The consequences of our nation unregulated or total liberalisation of the cocoa industry which has deprived Nigeria Nigeria Smallholder cocoa farmers almost the sum of N55 billion yearly.
As a result of our nation not joining Ivory Coast and Ghana in the collection of $400 per ton known as Living Income Deferential (LID) paid to cocoa farmers aside the cocoa floor price in those countries by the World cocoa buyers,” he said.
He lamented that cocoa which contributed the highest foreign exchange earnings in the 1950s to 1960s has reduced its earnings due to myriad of challenges confronting the sub-sector.
Adegoke said the advent of climate change has added another factor that is negatively affecting the production of cocoa.
He called for the establishment of the Cocoa Trust Fund.
According to him, the establishment of the trust fund will address poor funding and low investment in the cocoa sector, close infrastructure gaps and improve foreign exchange earnings for the country.
He said climate change, poor quality cocoa bean, over-reliance on cocoa bean for exportation and loss to illegal activities has deprived farmers of 40 per cent of proceed annually.
