The Ikom Cocoa Processing Factory, a joint venture between AA Universal Bean and Co Ltd and AA Universal Industries Ltd, in collaboration with LR Group of Israel, holds immense potential to revolutionize cocoa processing in Nigeria and significantly boost the nation’s revenue. Located in the Ikom Local Government Area of Cross River State, the factory aims to process cocoa beans into high-value products like cocoa butter, cocoa liquor, cocoa powder, and potentially even chocolate, moving away from the traditional practice of exporting raw cocoa beans. This value addition is projected to generate a staggering annual revenue of between $400 million and $600 million for the Federal Government, transforming the cocoa industry from a primary commodity exporter to a hub of processed cocoa products.
The company’s ambitious plan is underpinned by a comprehensive strategy that encompasses not only processing but also empowering cocoa farmers and modernizing farming practices. AA Universal Bean and Co Ltd plans to go beyond simply buying cocoa beans at premium prices. Recognizing that supporting farmers is key to achieving sustainable success, the company will provide them with high-quality pesticides to combat black pod disease and other challenges affecting cocoa production. This intervention aims to improve the quality and quantity of cocoa beans harvested, ensuring a consistent supply of raw materials for the processing factory.
Furthermore, the company is taking a proactive approach to address the financial needs of cocoa farmers by planning to establish a dedicated microfinance bank. This institution will provide financial support to farmers, enabling them to access the necessary resources for planting, maintenance, and expansion of their cocoa farms. By investing in the farmers’ financial well-being, the company aims to create a mutually beneficial partnership that drives growth and prosperity throughout the cocoa value chain.
The Ikom Cocoa Processing Factory’s vision extends beyond immediate financial gains. The company is committed to introducing modern and sustainable farming techniques to significantly increase cocoa yields. Currently, farmers in the region harvest approximately 400kg of cocoa per hectare. However, by implementing innovative farming protocols gleaned from their experience in Ecuador, South America, the company plans to help farmers achieve yields of up to 3.5 tonnes per hectare. This dramatic increase in productivity will not only benefit the farmers but also ensure the long-term viability of the cocoa industry.
The collaboration with the LR Group of Israel brings significant expertise and technology to the venture. LR Group is a renowned global company specializing in integrated development projects, and their involvement adds immense value to the Ikom project. Their international experience and network will be instrumental in accessing global markets for processed cocoa products, further enhancing the project’s potential to generate substantial revenue. Furthermore, the joint venture has secured a grant agreement with the United States government through the United States Department of Trade and Development Agency, reinforcing the project’s credibility and its potential to contribute significantly to economic development.
The Ikom Cocoa Processing Factory project exemplifies a comprehensive and sustainable approach to agricultural development. By combining advanced processing capabilities with farmer empowerment and modern farming techniques, the company is poised to transform the cocoa industry in Nigeria. This ambitious initiative promises to not only generate substantial revenue for the government but also to improve the livelihoods of cocoa farmers and contribute to the overall economic growth of the region. The factory’s success will serve as a model for other agricultural sectors, demonstrating the potential for value addition and sustainable practices to create a thriving and robust agricultural economy.
