Cocoa is one of Nigeria’s most valuable agricultural exports, making the country the 4th largest producer in the world after Ivory Coast, Ghana, and Indonesia. With over 300,000 metric tons of cocoa beans produced annually, Nigeria plays a significant role in meeting the rising global demand for chocolate and cocoa-based products.
The global chocolate market continues to expand, with Europe, North America, and Asia driving demand. This presents a golden opportunity for Nigerian entrepreneurs looking to enter the export space. Unlike many agricultural exports, cocoa has an established international market, strong price benchmarks, and a ready pool of buyers.
This is why new exporters are increasingly rushing into cocoa, it offers a business with global visibility, profitability, and long-term sustainability.
What You Need to Know About Cocoa Export
Before jumping in, it’s important to understand how the cocoa export chain works. Cocoa export doesn’t just mean buying beans and shipping them out; it involves sourcing, quality control, documentation, and logistics management.
The journey starts from smallholder farmers, who supply cooperatives and local buying agents. Exporters then aggregate these beans, ensure they meet international quality standards, and handle packaging and shipping to buyers overseas.
As an exporter, your role is to act as the link between Nigerian farmers and international buyers, ensuring the beans meet strict requirements and are delivered on time.
Getting Registered and Licensed as a Cocoa Exporter
One of the first steps to becoming a recognized exporter is getting properly registered and licensed. Without this, you can’t legally ship cocoa out of Nigeria.
- NEPC Registration: Every exporter must register with the Nigerian Export Promotion Council (NEPC) to obtain an export license. This license makes your business recognized internationally and allows you to apply for export documentation.
- SON/NAFDAC Compliance: The Standards Organisation of Nigeria (SON) and NAFDAC ensure that agricultural exports meet safety and quality standards. For cocoa beans, compliance includes proper packaging, labeling, and storage to prevent contamination.
Key Documents You Can’t Do Without:
- Form NXP: Declares the goods to be exported and must be processed through a commercial bank.
- Phytosanitary Certificate: Issued by the Federal Ministry of Agriculture, proving the beans are pest- and disease-free.
- Certificate of Origin: Confirms that the cocoa originated from Nigeria, often required by importing countries.
Skipping these steps can lead to shipment delays, rejections, or even blacklisting in the global market.
Finding Your Buyers: How to Connect With the Right Markets
The success of your cocoa export business depends on your ability to find and keep reliable buyers. Nigerian cocoa is highly sought after, particularly in Europe (Netherlands, Germany, UK), North America (USA, Canada), and Asia (Malaysia, Indonesia, China). These regions dominate global chocolate and cocoa-processing industries.
What do buyers look for in a supplier?
- Consistency in quality (well-fermented, properly dried beans)
- Reliability in supply (ability to meet agreed volumes)
- Competitive pricing
- Compliance with international standards
To find buyers, exporters often use:
- International trade fairs and cocoa conferences
- Online B2B platforms (like Alibaba, Tradekey, or Global Sources)
- Direct outreach to chocolate manufacturers and brokers
- Networks with established export companies
However, caution is key. Many new exporters fall prey to fake buyers and scams, often lured by unrealistic offers. Always verify a buyer’s credibility, request references, and use secure payment methods like letters of credit or bank guarantees.
Sourcing Cocoa
The first practical step in cocoa exporting is knowing where to buy quality beans. In Nigeria, the best cocoa-producing states include Ondo, Cross River, Osun, and Ekiti, with Ondo alone contributing the largest share of the country’s total output. These states are known for fertile soils, established farming communities, and beans that meet international demand.
The most reliable way to secure steady supply is by working with farmer cooperatives and licensed buying agents (LBAs). Cooperatives ensure that beans are aggregated in bulk, properly fermented, and easier to trace back to the source. This not only guarantees supply but also builds trust with international buyers who increasingly demand proof of ethical sourcing.
When buying, it’s important to understand pricing structures. Cocoa prices are influenced by the International Cocoa Organization (ICCO), but local factors like transport costs and availability also affect final rates. Negotiating fair deals means balancing profit with sustainability. If you underpay farmers, they may compromise on quality while overpaying without market research can cut into your margins.
Smart exporters always inspect beans physically, test for moisture levels, and confirm weights before finalizing deals. This prevents losses and ensures you’re not cheated with low-grade or adulterated cocoa.
Meeting International Standards
In the cocoa trade, quality determines everything, from whether your shipment is accepted to how much buyers are willing to pay. International buyers look at three major quality factors first:
- Fermentation: Proper fermentation enhances flavor and aroma, making Nigerian cocoa competitive in the global market. Poorly fermented beans lead to rejections.
- Drying: Cocoa must be dried to the right moisture level (6-8%). Over-dried beans can break easily, while under-dried beans risk mold and contamination.
- Moisture Content: Excess moisture above 8% can lead to mold growth and “sweating” during shipment, damaging the entire container.
Ignoring quality standards can be disastrous. Even one rejected shipment means huge financial losses, additional storage costs, and possible blacklisting from future deals. This is why professional exporters treat quality control as the heart of their business.
Storing Cocoa the Right Way Before Export
After sourcing, one of the biggest challenges is storage. Cocoa beans are highly sensitive and can lose value if not stored under the right conditions.
The ideal warehouse conditions include:
- Well-ventilated storage to prevent moisture buildup
- Stacking bags on wooden pallets, not directly on the floor
- Protection from pests and rodents
- Regular inspection for mold or unusual odors
Common mistakes many beginners make include storing beans in damp warehouses, placing bags directly against walls, or failing to monitor moisture. These errors can lead to mold, insect infestation, or contamination, instantly ruining the shipment.
Professional exporters like Omas Commodities avoid these pitfalls by investing in modern storage facilities, using moisture meters, and conducting routine quality checks. We also maintain strict handling protocols to ensure the beans remain in top condition until they are loaded into shipping containers.
Getting the Beans to Port
Once your cocoa beans are sorted and stored, the next challenge is moving them to the port efficiently. This process has two main phases: farm-to-warehouse and warehouse-to-port. The first requires trucks or smaller vehicles depending on the sourcing location. The second involves bulk transport to major export ports like Lagos (Apapa, Tin Can Island) or Port Harcourt.
For international shipping, exporters must decide between working directly with shipping lines or hiring freight forwarders. Shipping lines can be cheaper if you’re experienced, but freight forwarders simplify the process by handling container booking, customs clearance, and cargo loading.
Delays at the port can wipe out profit margins, whether from demurrage charges (fees for keeping containers too long), unexpected strikes, or poor planning. The best exporters avoid these setbacks by:
- Booking containers well in advance
- Ensuring all documents are ready before arrival
- Partnering with reliable logistics firms
Smooth logistics is about protecting bean quality and ensuring buyers receive shipments on time.
Export Documentation
If logistics moves your beans, documentation moves your money. Cocoa export requires several must-have documents:
- NEPC Export License
- Form NXP (Nigeria Export Proceeds Form)
- Phytosanitary Certificate (showing beans are pest-free)
- Certificate of Origin (issued by Chambers of Commerce)
- Bill of Lading (from the shipping company)
- Commercial Invoice & Packing List
Even a minor error in paperwork can cause your shipment to be delayed, rejected, or held at customs. For example, discrepancies in declared weights or quality grades can trigger penalties.
How Much It Really Costs to Start Cocoa Export
Many new exporters underestimate costs, which is why cash flow problems are the top reason cocoa businesses fail. Starting up involves both fixed and variable expenses such as:
- Registration and licensing fees (NEPC, SON, NAFDAC)
- Quality testing and certifications
- Purchasing cocoa beans in bulk
- Storage and warehousing costs
- Transport to port and freight charges
- Insurance and miscellaneous expenses
For medium-scale exporters, initial setup can run into tens of millions of naira, depending on volume.
Financing options include bank loans, trade finance, or letters of credit (LCs), where buyers’ banks guarantee payment once documents are verified. Smart exporters also invest in cargo insurance to protect against losses from theft, accidents, or spoilage.
The key is to plan cash flow carefully. Running out of funds midway, after buying beans but before shipping, can trap you in debt or force you to sell at a loss.
Omas Commodities
At Omas Commodities, we understand the hurdles new exporters face, and we’ve built systems to eliminate them:
- Sourcing Network and Farmer Partnerships: We have long-standing relationships with farmer cooperatives in cocoa-rich states like Ondo, Cross River, and Osun, ensuring steady supply of high-quality beans.
- Warehousing and Quality Control Systems: Our storage facilities are designed for cocoa, with proper ventilation and moisture control. Every batch undergoes grading, moisture checks, and traceability audits before leaving the warehouse.
- End-to-End Logistics and Compliance Support: From transport to port clearance, we streamline the logistics process. We also handle documentation, certifications, and compliance checks, so exporters avoid costly errors and delays.
By working with Omas, exporters can focus on growing their business while we handle the heavy lifting.
Contact Us
◾Phone: +234 808 000 0224
◾Email: [email protected]
◾Head Office:
29, Ondo Road, Beside Onward House, Akure, Ondo State
◾International Office:
Elephant Hill Drive, Bowmanville, Ontario, Canada
◾Warehouse 1:
135, Ojota Road, Opa Quarters, Idanre, Ondo State
◾Warehouse 2:
Melegun/Olowotedo Camp. Opposite New Makun City Estate, Lagos/Ibadan expressway, Ogun State.
Conclusion
Nigeria’s cocoa export business is booming, and opportunities are wide open for those willing to start. But success requires careful planning, proper registration, strict quality control, and reliable logistics partners.
Starting right is more important than starting fast. The exporters who take the time to build strong systems, relationships, and financial structures are the ones who thrive in the global cocoa market.
At Omas Commodities, we help you turn your cocoa export dream into a sustainable, profitable reality. From sourcing to shipping, we are your trusted partner every step of the way.
Ready to begin your cocoa export journey? Partner with Omas Commodities today.