Nigeria’s Cocoa Farmers to Pay More for Chemicals, Other Inputs Due to Currency Woes
IBADAN, Nigeria–Nigerian cocoa farmers will have to pay more for chemicals and other inputs due to the weakening value of the national currency, the naira, as well as high transportation costs and other factors, chemical dealers and traders said Friday.
“The cost of chemicals such as fungicides, insecticides and herbicides have risen by at least 50% to 100% because of the naira devaluation. Farmers are not going to be able to afford the inputs,” said Bayo Anifowose, a trader.
He said the naira is trading Friday at an official rate of 415.72 to the dollar from NGN409 in October, while the parallel rate is currently NGN600 to NGN610 to the dollar from NGN575 two months ago.
Mr. Anifowose said the naira’s decline has raised the prices of chemicals and inputs such as machetes and spraying equipment because most of them are imported.
Isaac Ashaolu, a chemical dealer in Ibadan, capital of Oyo state, in the southwest cocoa region, said a 50-gram sachet of fungicide used to combat the black pod disease on cocoa farms, is currently selling at NGN400 to NGN410 from NGN320 to NGN340 at the beginning of the year, while a liter of herbicide now costs NGN4,000 from NGN1,700 in January.
He said a high-quality machete now costs NGN4,000, up from NGN2,000 at the beginning of the year.
“Cost of chemicals have increased tremendously. Farmers are struggling to buy fungicides and other chemicals especially now that the rainy season has come with cocoa susceptible to the black pod disease,” said Mr. Ashaolu.
He added that importers are also paying higher costs to transport their imported chemicals and other inputs from the ports in Lagos to cocoa-producing states due to the rise in the cost of diesel, which is used by heavy trucks.
Diesel, he said, now costs NGN700 to NGN740 per liter, up from NGN320 NGN400 per liter at the beginning of the year.
“Farmers may face a difficult time in the 2022-23 cocoa season especially during the harvest of the main crop if the value of the naira does not improve against the dollar. Such an improvement will bring down the cost of farm inputs,” Mr. Anifowose said.
By Obafemi Oredein; Dow Jones Newswires
