Nigerian cocoa exporters, which depend on imported jute luggage to bundle their beans, are going through a scarcity after some Southeast Asian factories slowed manufacturing attributable to a surge in coronavirus circumstances.
Worldwide patrons insist on packaging in hydrocarbon-free jute luggage to protect the beans’ high quality. Nigeria, which doesn’t produce them regionally, depends on imports from Bangladesh and India, which have been badly hit by the outbreak.
“Nigeria may lose between $600 million and $700 million in cocoa beans export earnings if the present shortage of hydrocarbon-free jute luggage within the commerce will not be tackled urgently,” Mufutau Abolarinwa, president of the Cocoa Affiliation of Nigeria, mentioned by telephone from Akure in Nigeria’s southwest.
Nigeria, which is the fifth-largest cocoa producer, may see its projected output of 300,000 metric tons for the 2021/22 season scale back to 225,000 metric tons due a excessive danger of flooding thi yr, in line with the affiliation.
That harvest would require at the least 3.6 million jute luggage, which might price about $9.5 million at present costs, in line with a Bloomberg calculation. The Cocoa Affiliation of Nigeria has put in a request with the Finance Ministry for an import-duty waiver and overseas change entry to deliver jute luggage into the nation, Abolarinwa mentioned.
Ivory Coast, the world’s high cocoa grower, produces jute luggage regionally. Ghana, the second-highest producer, hasn’t reported a scarcity of luggage for cocoa packaging. In the meantime, Cameroon, the fourth-biggest producer, stocked up upfront, in line with Austin Kidzeru, a mission supervisor at Olam Cameroon.
Temitope Eladiya, Managing Director of ZTI Farms Ltd., a jute bag importer primarily based within the industrial capital, Lagos, mentioned his Bangladeshi suppliers have mentioned his order may take as much as 9 months to reach.
— With help by Pius Lukong, Ekow Dontoh, and Leanne de Bassompierre