Why African Cocoa Producers Should Rethink a 'Cocoa Coalition'

I believe forming a cocoa exporters’ association like OPEC sounds attractive. But banning cocoa exports when derivatives are sold worldwide would backfire. Nigeria produces nearly 300,000 tonnes of cocoa each year, worth about $1.5–2 billion. Yet we import derivatives valued at $40 million. Building local processing capacity for even 10,000 tonnes would cover our consumption and keep more revenue at home. Instead of export bans, African producers should invest in processing and market chocolate and other cocoa products. Disrupting free trade risks a supply glut and price crash. Growing downstream demand protects farmers and the broader industry.

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