NCMC COMMUNIQUE ON EUDR RESPONSE

NIGERIA PREPAREDNESS FOR COMPLIANCE WITH EUROPEAN UNION DEFEROSTATION REGULATION (EUDR); A COMMUNIQUE BY THE NATIONAL COCOA MANAGEMENT COMMITTEE (NCMC) 1. As part of its pioneering efforts to put in place a National framework for EUDR preparedness and compliance, the National Cocoa Management Committee (NCMC) and the International Finance Corporation (IFC) on 19th April, 2024 conducted a hybrid technical roundtable discussion that brought together over 100 cocoa stakeholders and value chain actors drawn from the public, private and the development community. 2. The roundtable, which is an integral part of NCMC and IFC partnership to unlocking the potentials in Nigerian Cocoa Ecosystem recommended the following for serious and urgent attention for compliance with the EUDR due diligence pillars on traceability, deforestation free and legality of products. • The urgency of Nigeria’s EUDR Preparedness assessment check is of priority and is highly recommended as soon as possible. In this regard, the EU representative gave a commitment to support Nigeria for an EUDR Preparedness’ Assessment check as done for Cote D’Ivoire, Ghana and Cameroon if Nigeria lobbies for it. Accordingly, it was roundly endorsed that the Federal Government of Nigeria needs to engage urgently in this regard with the EU. • For the traceability compliance pillar, there is also the urgent need to put in place a Central National Cocoa database that will comprise amongst other indices, the registration of all farms, farmers, processors, exporters, intermediation services providers and buying agents and the relevant MDAs across the 22 cocoa producing States. There is no National Database of the current state of play for Traceability/Certification, Forest maps, Legality/Due diligence. • The whole essence of the EUDR will be predicated on an updated National Forest Map for the cocoa producing states in particular to indicate deforestation- free cocoa and cocoa products. Nigeria needs updated forest map with geo-location of tree crops and other land matters for Traceability. Forestry Research Institute of Nigeria (FRIN) has capabilities for Forests, Tree Cover map, Forest Cover, Forest Loss and Tree Loss for Nigeria. The Institute is however hampered by lack of adequate funding even for validating existing Forest data, forest and crop maps. • Information came out that there is on ground Traceability and Certification to a certain extent but that the data are with the export and processing companies for their own supply chain needs and certification protocols. Forest Alliance informed the meeting that there is 60% mapping of all Cocoa small scale holders in all Cocoa producing areas outside protected forests. Barry Callebaut, claim they map, train and capacitate all their farmers and are thus good on sustainability. It was thus recommended that the Private sector Operators with Traceability/Certification, Deforestation-Free and Legality Compliance records be encouraged to come together to pool such records for Nigeria. NCMC is to facilitate this. • It was identified that Public Officers need urgent capacity building on a harmonized cocoa-specific protocol particularly for Officers at Forestry Research Institute (FRIN), FMAFS, Cocoa Research Institute of Nigeria (CRIN), the various Produce Inspection Officers at Federal Produce Inspection Service (FPIS), State Produce Inspection Service (SPIS), Standards Organization of Nigeria (SON) and others. This will be to capacitate them to render support services to the various Stakeholders and reduce bottlenecks that hinder investments. In this regard, it was also recommended that Inter Ministry and Inter Agency cooperation should be improved for information sharing and other matters. • There is also a need for Regulatory reforms and an improved Legislative framework for Cocoa and Land matters. The need for a new or a review of Legislative framework for land matters was recommended as there were challenges with the current Land use Act that vests all lands in the hands of the State Governments which includes Forests issues. As a fallout to the roundtable, The European Union (EU) notified the Federal Ministry of Agriculture and Food security (FMAFS), on the new rules regarding products that are drivers of climate change and biodiversity loss. EU being one of Nigeria’s major trading partners also informed Nigeria that non-compliance to EUDR regulation could impact negatively on EU-Nigerian trade. The FMAFS responded to the letter from EU by inviting them to conduct EUDR preparedness assessment check like what was done for Ghana, Cote d’Ivoire and Cameroon. Extension for EUDR compliance deadline and also carbon credit consideration was also requested. 3. The National Cocoa Management Committee (NCMC) was the outcome of interactive meeting between the Nigerian delegation and Ghana Cocoa Board held in Accra, Ghana on 19th May 2022. The Honorable Minister of Agriculture approved the establishment of the National Cocoa Management Committee (NCMC), a national coordinating body expected to guarantee quality, traceability, transparency, and sustainability in Cocoa Value Chain on 2nd August 2022 for the purpose of developing a framework for the regulation and monitoring of Cocoa sector’s activities. At their inaugural meeting the NCMC came up with draft Bill for the establishment of the National Cocoa Board. The board when fully functional will operate in the following ways: • To develop a framework for the regulation and monitoring of the activities of the Cocoa sector to make the industry more transparent; to develop a strategic plan towards the establishment of a Nigerian Cocoa Board. • The NCMC, as an important regulatory body in the Nigerian Cocoa sector shall upscale their activities to all cocoa producing states. • The NCMC shall organize and conduct a national conference for Commissioners of Agriculture from 36 states and FCT to sensitize them on the importance of cocoa and efforts of the Federal Government towards increased production. • The NCMC shall develop Local, State and Federal Government strategic implementation plan of the National Cocoa Management Committee; and • The NCMC shall establish data bank for all Multinational Companies and Exporters of Cocoa Beans from Nigerian Ports. The National Cocoa Management Committee (NCMC) held its first meeting in Abuja on 3rd November 2022 and two other meetings in Abuja and Akure, Ondo State respectively, the meeting discussed issues on how to develop a framework for the coordination, regulations, and monitoring of Cocoa activities in the Country and EU Child Labour/EU Deforestation Regulation (EUDR) for implementation and compliance. Major achievements and efforts to date include: - • The NCMC has been able to bring together relevant stakeholders (World Cocoa Foundation, International Financial Corporation- World Bank Group, International Cocoa Organization, European Union etc.) in the Country and world at large towards chatting a new direction for the Nigerian cocoa sector. • The NCMC has held four (4) meetings since inception, creating awareness among the stakeholders on the EUDR due diligence protocol. • The NCMC has enabled a proper coordination within the Cocoa industry which was lacking due to non-regulation of the Cocoa sector in Nigeria, unlike Ghana with full regulation while Cote d’Ivoire has partial regulation. • The NCMC has enabled major players in the Cocoa sector to have a forum through which ideas are discussed for the growth of the sector. • NCMC during its courtesy visit to Honourable Minister of Agriculture (HMA) recently successfully secured the buy-in of the HMA to support its activities. • NCMC and Lutheran World Relief (LWR) are collaborating on several areas through her Traceability and Resilience in Agriculture (TRACE) project in Nigeria to ensure Traceability/Certification, Forest maps, Legality/Due diligence. 4. At the 4th meeting of the NCMC, held on the 6th of June 2024 at Exclusive serene hotel, Abuja, the NCMC resolved to pursue various funding options available to the committee; meeting the EUDR target on deforestation, establishment of a National traceability system in Nigeria; strengthening of NCMC to metamorphose into National Cocoa Board as obtained in Ghana Cote d’Ivoire and Cameroon and partial regulation of the Cocoa Industry in Nigeria to guarantee quality, transparency, traceability, and sustainability. At this meeting, the World Cocoa Foundation (WCF) also engaged the NCMC on possible areas of collaboration and the need for partnership options aimed at Sustainable cocoa ecosystems especially through the replication of the Cocoa Forest Initiatives, an initiative of the Foundation currently implemented in, Cameroon, Cote d’ Ivoire and Ghana. The NCMC also resolved to reach out and bring on-board all relevant government agencies that are already working on EUDR compliance in order to have a unified national response to comply with the regulation.

Posted on: 2024-06-15

Nigeria Races To Comply With EU’s Regulation For Cocoa

The National Cocoa Management Committee convened critical stakeholders in cocoa sub-sector in Abuja to strategize how to boost Nigeria’s cocoa production, and most importantly address the gaps to ensure the country complies with EU standards. The Committee serves as the regulatory body for all matters that concerns the cocoa sector. It was inaugurated by the Ministry of Agriculture and Food Security and comprises of members that cut across all the sectors in the cocoa value chain. Patrick Adebola, Executive Director of the Committee, informed that govenrnent and all stakeholders are putting heads together on the EUDR, noting that if Nigeria does not comply with the standards, the country may no longer be able to export cocoa beans and products to Europe, which is the biggest market for the country. He expressed concerns that Nigeria exports about 70% of cocoa beans and failure to meet standards set will significantly impact the value chain. “The key issue that we are discussing in this meeting is the issue of the EUDR regulation on our cocoa that will come into force in December this year. If we are found not to be compliant, it means our cocoa beans may not be accepted to be sold in European markets. That is the reason why we are putting our heads together to see how we can start to discuss compliance to EUDR”, Adebola told journalists. He also informed that the World Cocoa Foundation is also providing support to enable Nigeria comply with the standards. The executive director, however decried that the EUDR is rather unfair and stringent, stressing that the EU did not consult widely with exporting countries before drafting such regulation. In addition to prohibiting cocoa harvested from deforested areas, Adebola said the regulation also prohibits cocoa planted and harvested through child labour, big said their definition of child labour may not apply to Nigerian context. Related News Kidnappers abducts company MD, three Lebanese brothers in Lagos Why \'unidentified\' aircraft hovered over presidential villa - NAMA House of Representatives clarifies position on bill proposing return to regional government “One of the contentious issue in this regulation is that they don’t want our they don’t want cocoa beans that are being harvested from deforested area because deforestation leads to environmental degradation, even though we are arguing with them that when you cut down a tree and plant cocoa tree, that is not a deforestation. We were not given an opportunity to discuss before the EU regulation. “We feel these regulation are very stringent and Nigeria will need a lot of help in order for us to to comply with this stringent regulation. We see it as being unfair, and we felt that countries that are involved were not really fully engaged before this EUDR was rolled out”, he said. “Our own situation is peculiar, and what they see as child labour might not necessarily be a child labor in our own Nigerian context. So all those issues needs to still be discussed”, he added. The executive director also wants the EU government to extend the time to ensure proper preparation by exporting countries. According to him, only about 50% of the exporting countries will be able to comply with this stringent regulation before the deadline of December 2024. “We are voicing out to make sure that the EU either give us a little bit more time to prepare for the compliance or to look at regulation all over to see whether there is a way to relax that regulation and make it less stringent “he further said. Mufutau Abolarinwa, the National President of Cocoa Association of Nigeria, said the meeting also sought to explore ways to increase cocoa production, in addition to meeting set standards for export. He decried that Nigeira still produces below 300,000 metric tons even though the country has up to 16 cocoa producing states, while prices of cocoa continue to rise globally. The president urged government to provide more incentives.

Posted on: 2024-06-15

NCMC Met With Senator Abubarkar Kyari

Nigeria seeks ways to boost domestic production of cocoa beans after the product and it value chain generated about N356.16 billion in 2023. That figure, according to the Minister of Agriculture and Food Security, Senator Abubakar Kyari, is the “highest agricultural contributor to the gross domestic product (GDP).”

Posted on: 2024-06-15

Why More Youth Will Key Into Cocoa Production

Nigeria’s cocoa farmers are racing to plant more high-yielding seedlings to replace old trees while expanding their growing areas after a six-fold jump in prices this year. This, according to the Cocoa Farmers Association of Nigeria, will help boost the country’s cocoa output in three years when they start fruiting. Production may climb by 500,000 to 800,000 metric tons by 2026, Adeola Adegoke, national president of the Cocoa Farmers Association of Nigeria, said in an interview Wednesday. That would suggest a 132 percent rise from Nigeria’s 2022-2023 production estimates by the International Cocoa Association (ICCO). “There are lots of investments going in the sector as we speak by farmers because of the record prices,” Adegoke said. “Cocoa farmers are planting more seedlings and taking care of their old plantations so they can have better yields. Even those not growing cocoa have become emergency cocoa farmers,” he explained. Currently, a metric ton of the commodity sells for an average of N11.2 million at the Matori warehouse in Oshodi, Lagos. That’s a six-fold jump compared to the N1.8 million a metric ton of cocoa beans sold for in January 2024. Nigerian cocoa growers are making more money than their counterparts in Ghana and Ivory Coast thanks to a steep naira devaluation that has resulted in a sharp increase in the naira income from the export of the beans. The international price of cocoa beans has almost tripled since the start of the year owing to bad weather that battered harvest in top West African growers – Ivory Coast and Ghana, causing a shortfall and cutting 50 percent of global supply. Tempting though it may be to bank the windfall cash, farmers in Africa’s most populous country see an opportunity to invest to produce more. Many are now buying high-yielding seedlings, expanding their growing areas and planting more cocoa instead of less profitable crops. “With the current price of cocoa, many of us are geared towards engaging in producing more cocoa instead of growing less profitable crops,” Musa Sanda, a cocoa farmer in Kurmi Local Government Area in Taraba, told BusinessDay. “I just placed an order for 1,000 seedlings to replace my coffee trees as coffee does not bring the kind of money cocoa is giving me now,” Sanda said. Lawrence Afere, founder and CEO of Springboard Farmers’ Co-operative of Nigeria, said the price rally is not just driving more investments from farmers but also attracting new entrants of farmers into the sector. “We have a cocoa nursery where we raise seedlings and saplings and lots of farmers not only from Ondo but as far as Abia are coming to buy,” Afere said.

Posted on: 2024-05-09

WORLD COCOA CONFERENCE 2024 @ BRUSSELS

Stakeholders in the cocoa value chain have expressed commitment to address the lingering issues hindering cocoa value chain development in the world. The move according to the cocoa stakeholders is apt, as they called on world economies to adhere strictly to sustainability measures and new regulations. Highlighting the success of the World Cocoa Conference in Brussels, Belgium, held from April, 21st – 24th, the National President of the Cocoa Farmers Association of Nigeria (CFAN), Comrade Adeola Adegoke, said the event reinforced the commitment of stakeholders towards combating practices detrimental to the long-term sustainability of the cocoa industry. According to him, the key among the discussions was the implementation of the European Union’s Directive on Deforestation and Forest Degradation (EUDR), which signals a collective willingness to embrace change. He said there are big questions that need answers, which include who pays for making sure cocoa farming follows new rules without putting too much burden on farmers and whether other countries are ready to join in making cocoa farming more sustainable, not just the big ones like Ivory Coast and Ghana, the procedure for the calculation of sustainable pricing or fair pricing that takes into consideration the cost of production and the profit margin without leaving the market model at demand and supply mechanism which has always short-changed the producers in past years? “What happens to the encroached conserved areas with large cocoa plantations after 2020 which contribute almost 30% of the global cocoa supply if not more? How do cocoa origin countries strengthen the implementation of carbon credit in order for the producers to be encouraged in compliance?” He asked. He further drew attention to the preparedness of cocoa-producing nations beyond Ivory Coast and Ghana, which have traditionally received substantial investments in sustainability programmes. Commending the European countries, Adegoke said they have demonstrated their uncommon passion for the consumption of chocolate at every corner of their daily activities. He urged West African countries, saying, “West African cocoa origin countries must start to chocolatize the toques of our children in order to change the culture of low cocoa consumption that transcends from one generation to another.” “Our power must not only lie on production but more energy must be put into consumption in order to raise the livelihoods of our producers for the sustainability of the cocoa economy of our region. Adegoke also called for a model of cooperation between forestry and agriculture departments within cocoa-origin countries to effectively implement the EUDR policy while addressing deforestation concerns.

Posted on: 2024-05-09

CHILD LABOUR ERADICATION WITH LWR

Cocoa Farmers Association of Nigeria and Lutheran World Relief are partnering through CLEAR PROJECT on how to eradicate child labour in our cocoa communities via educational development of the affected communities. CFAN will continue to work with the various stakeholders on how to completely eradicate child labour in the Nigerian cocoa supply chain.

Posted on: 2024-04-06

WHY NIGERIAN COCOA FARMERS ARE COMFORTABLE NOW

PRESS RELEASE WHY THE NIGERIAN COCOA FARMERS ARE COMFORTABLE WITH THE CURRENT COCOA PRICING SYSTEM DESPITE THE NON - IMPLEMENTATION OF LID. Nigeria Cocoa farmers presently are enjoying our best of the moment due to the skyrocketing prices of cocoa beans at the international markets and especially considering the fact that Nigeria is presently running a deregulated cocoa economy after the abolition of the cocoa board in the year 1986. And presently, we are not envying our counterparts cocoa farmers in Ghana and Ivory Coast due to the system of their cocoa economy which does not give them the opportunity to enjoy the present surge in cocoa prices as a result of the future cocoa contract being executed by their respective cocoa boards. In fact, we were reliably informed that the price the two respective giant cocoa origin countries are paying their cocoa farmers were the prices of cocoa as at April, 2023 that was around $ 2,700 per ton. Let’s forget the new increment in cocoa prices in Ivory Coast and Ghana of recent where it was done at 50% increments at both countries just last week and this week respectively. What Nigeria needs is to firm the control of our cocoa economy in order to increase the production and productivity of our smallholder cocoa farmers’ farms holdings through the provisions of subsidized farm inputs, credit facility, capacity building etc thereby improving their livelihoods. We must start to regulate and promote the Nigerian cocoa economy through the National Cocoa management Committee (NCMC) where more investment into the sector will be guaranteed if the Committee can achieve stable regulatory framework that controls quality , smuggling, pesticides control, extension management, R&D, traceability, FMAFS & State Cocoa Producing Governments synergy, child labor eradication, deforestation control and National Cocoa Plan implementation . The NCMC must not get involved in buying and selling of cocoa beans except cocoa beans stabilization support funding in future when necessary especially when cocoa price nosedived downward beyond cocoa farmers economic capacity as being done in other developed countries on other commodities. The EUDR policy has called for a greater participation of cocoa stakeholders collaboration in order to achieve a national traceability system that guarantees a seamless transparency in our cocoa economy business with sustainability. Nigeria has better opportunities to surpass Ivory Coast and Ghana considering the downward sliding of their cocoa production due to pest and disease, climate change, smuggling, miners activities, land degradation, unfavorable cocoa economy governance (government involvement in buying and selling of cocoa beans), poor remuneration of their smallholder cocoa farmers etc. With the Nigeria youth population in cocoa industry, and the favorable cocoa governance as far as the recent cocoa prices benefit to the Nigerian cocoa farmers are concerned, the future of the Nigerian cocoa sector will further be brightened with the intervention of the full exercise of the regulatory powers of the industry vested in the hands of NCMC dominated by the private stakeholders of the Nigerian cocoa industry. Nigeria is moving towards a sustainable cocoa economy with a renewed hope agenda of the present administration. May Nigeria succeeds! Comrade Adeola Adegoke National President, Cocoa Farmers Association of Nigeria {CFAN}.

Posted on: 2024-04-06

3RD NATIONAL COCOA MANAGEMENT COMMITTEE MEETING @ AKURE

NIGERIAN COCOA #STAKEHOLDERS UNDER NATIONAL COCOA MANAGEMENT COMMITTEE {NCMC} INAUGURATED BY THE FMAFS TO OVERSEE THE #REGULATION OF THE COCOA INDUSTRY IN NIGERIA HAD CONCLUDED HER 3RD MEETING HELD ON THE 7TH OF MARCH, 2024 AT HERITAGE INTERNATIONAL HOTEL, AKURE, #ONDO STATE. TOPICAL ISSUES LIKE THE DOMESTICATION OF EUDR REGULATIONS AND HOW TO BOOST THE NIGERIAN COCOA #PRODUCTION THROUGH THE IMPLEMENTATION OF THE NATIONAL COCOA #PLAN WERE THOROUGHLY DELIBERATED UPON. The #National Cocoa Management Committee (NCMC), a committee inaugurated by the #Federal Ministry of #Agriculture and Food Security in 2022, saddled with the responsibility of coordinating and regulating the #cocoa sector in Nigeria recently had its 3rd meeting in Akure, Ondo State on the 7th of March 2024. Among the participants at the meeting were Seven(7) members of the committee namely Dr Patrick Adebola, Executive Director Cocoa #Research Institute of Nigeria(CRIN, Mr Ajayi Olutobaba, Deputy Director #Federal Ministry of Agriculture and Food Security(FMAFS), Mrs Hajara Usman, Deputy Director Federal Ministry of #Industry Trade and Investment(FMITI), Comrade Adeola Adegoke, President,Cocoa Farmers #Association of Nigeria(CFAN), Mr Mufutau Abolarinwa, President Cocoa Association of Nigeria, Prince Matins Awofisayo CEO Harvesfield Limited and Mr. Williams Ifere, Cross River State Cocoa Desk Officer. Also in attendance were Prince Senator (Dr.) Gbolahan Dada FNIM ,who did a Presentation on Technology Driven Cocoa Production and Value Addition in Cocoa Products in Nigeria, Mr Jerry Oche, who had a presentation on #European Union Regulation #Compliance on #Deforestation and way forward, Mr Ayo Akinola whose presentation was on Impending European Union threats to Nigerian Cocoa Bean/Products and way forward and Mr Benjami Eze , Harvestfield Industries Limited whose presentation was on Organic Products for Cocoa. We also had the presence of #ofi representatives and #LWR-TRACE(Chief of Party),Nene Akwerty. The discussions were centred around mitigating the impending #EUDR threats to Cocoa sector in Nigeria and guaranteeing a robust and #transparent cocoa sector through transparency, #traceability, and coordination within the cocoa industry. Furthermore, the need for #National Cocoa Plan to be implemented by the National Cocoa Management Committee (NCMC) was an outcome of the meeting. Also, it was noted that the National Cocoa #Board is essential, and its establishment will further improve cocoa production in Nigeria. Signed. National Cocoa Management Committee Secretariat, FMAFS,Abuja.

Posted on: 2024-03-10

NIGERIA CAN OVERTAKE IVORY COAST & GHANA IN COCO

WHY NIGERIA CAN OVERTAKE IVORY COAST AND GHANA IN COCOA PRODUCTION BEFORE 2026. I am of the opinion that if we smallholder cocoa farmers can partner and be supported by cocoa producing #stategovernments to #irrigate our cocoa #farms all year round in all the #cocoa producing states in Nigeria; honestly Nigeria vision of doubling whatever #premium cocoa beans #ivorycoast and #ghana are jointly producing achievable before 2026. Nigeria is endowed with #land, #youth population, #research resources, good #soil, #varieties, #aroma, #capacity and private sector player’s #resilience! May #nigeria dreams of becoming again the #highest cocoa #producer amongst cocoa #origin #countries possible before #2026. Comrade Adeola Adegoke National President, Cocoa Farmers #Association of Nigeria {CFAN}

Posted on: 2024-03-10

2ND NATIONAL COCOA FESTIVAL LOADING

Nigeria Cocoa stakeholders are currently preparing for the celebrations of the 2nd National Cocoa Festival slated for the 18th and 19th October,2023 at Abuja.

Posted on: 2023-10-12