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Nigerian Cocoa Exports Climb 26 pct in August Year-on-Year

Source: Reuters
26/09/2008

Lagos, September 25, 2008 - Nigeria's cocoa exports climbed by 26 percent to 4,902 tonnes in August from the same month of last year, data from the Federal Produce Inspection Service (FPIS) showed on Thursday.

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The FPIS is the government agency that certifies cocoa and other farm produce as fit for export mainly to Western markets, where the beans are used for making chocolate, ice cream, cake, liquor, cosmetics and beverages.

The increase in cocoa exports from the world's number four grower is consistent with the trend since the strong start of the 2007/08 season in October in Nigeria.

Total Nigerian cocoa exports in the 11 months to August rose by 24 percent to 163,196 tonnes from 131,105 tonnes in the same period of the 2006/07 season, the FPIS data showed.

The official export figures for the period are 7 percent higher than the 153,000 tonnes which exporters estimated as Lagos cocoa arrivals for the last 11 months.

Industry experts say the official shipments could be much higher because some exporters do not make full disclosure of their cargoes at the ports.

A sizeable volume of beans is also smuggled across Nigerian borders by exporters trying to take advantage of lower port charges in neighbouring countries.

Analysts said the growth in exports was an indication that the government's cocoa revival programme launched in 2005 to rapidly expand production and encourage local consumption, has recorded some successes.

"The number of cocoa producing states has increased to about 20 from 14 in the last three years, so national output is bound to rise," said commodity analyst Robo Adhuze.

"Production from Taraba state that used to go to Cameroon because of the distance of bringing it to Calabar or Lagos, is now being retained in Nigeria."

Cameroon, Nigeria's eastern neighbour, is the world's number five cocoa grower.

Nigerian cocoa production peaked at around 400,000 tonnes per year in the 1970s, but the government began to neglect the industry with the advent of oil and the decline accelerated when the sector was deregulated in 1986.

Following is a monthly breakdown of Nigerian cocoa exports in tonnes as obtained from the FPIS:

     2007/08 - 2006/07

October   11,104 - 12,216

November   16,644 - 15,674

December   33,897 - 28,522

January   33,905 - 31,186

February   28,104 - 20,791

March   9,701 - 5,480

April   4,533- 2,752

May   6,401 - 2,360

June  7,810 - 3,989

July 6,204 - 4,251

August 4,902 - 3,884



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