Calabar: The A A Universal Agro Company has revealed that Nigeria stands to earn N900 billion ($600 million) annually from the Ikom Cocoa Export Processing Plant in Cross River once it becomes fully operational. The Managing Director of the agro company, Mr. Chris Agara, shared this development during an interview with the News Agency of Nigeria (NAN) in Calabar.
According to News Agency of Nigeria, Agara highlighted the company’s collaboration with an Israeli firm, B and Co, a member of the LR Group, to rejuvenate Nigeria’s cocoa industry. The partnership involves a contract grant agreement facilitated by the United States Trade and Development Agency (USTDA), aiming to carry out a feasibility study and develop a bankable business plan for cocoa and cassava farming and value chains. This initiative focuses on enhancing local usage and boosting export potential by adhering to international standards and best practices.
Agara emphasized that adopting their protocols and methodologies could significantly enhance cocoa yield, potentially increasing it from the current 400kg per hectare to 3.5 tons per hectare. He called upon the Federal Government to support the firm in accessing funds from the International Finance Institute, stressing the need for governmental guarantees to secure this funding. He also urged the state government to implement policies ensuring that Cross River cocoa is processed within the state, as much of it is currently exported by merchants.
Agara further elaborated on the technological advantages offered by their Israeli partner, which could drastically improve cocoa yields. He expressed a commitment to not only enhancing the processing plant’s output but also assisting local farmers in upgrading their production capabilities.
The grant from the United States, Agara mentioned, also encompasses cassava, a crop with significant demand in the US for industrial starch, drug pellets, cassava flour, and other products. This initiative could open direct trade channels between Nigeria and the US, particularly for agricultural products like cocoa and cassava, thus improving Nigeria’s balance of trade and economic standing.
Agara noted that while the first production line of the cocoa processing plant is functional and has been test-run, it currently relies on generator power. However, the second phase of the plant will integrate renewable energy to sustain its operations, directly sourcing cocoa from local farmers and alleviating their labor burdens.
The delay in the plant’s full operation, Agara attributed to power challenges. He remarked that running the plant on diesel would incur prohibitive costs, thus the ongoing construction of a renewable energy plant to ensure a reliable power supply. This strategic move is expected to resolve operational delays and enhance the plant’s efficiency once fully implemented.