Wednesday, April 2, 2014

COCOA BEANS PROCESSING IN NIGERIA: HOW VIABLE?



From June, 2013 Foraminifera Market Research would start publishing our E- magazine. The magazine would focus on investment and business opportunity in Nigeria. Be the first to get hot investment and business opportunities in Nigeria by subscribing to our E- Magazine, Investing in Nigeria.

SOFT COPY SUBSCRIPTION

Annual subscription x 12 issues

Never miss another issue of Investing in Nigeria magazine. Get an Annual Subscription and get Investing in Nigeria magazine delivered direct to your E- Mail Address every month!

You would also have 12 months access to over 50 market research reports on our website.
N5, 000 for 12 issues
Euro 25 for 12 issues
$32 for 12 issues

Subscribe Now!

For more on our subscription and membership package, please do visit http://www.foramfera.com/index.php/membership-zone

Cocoa Beans is the dried and partially fermented fatty seed of the cacao tree from which chocolate is made. Cocoa can generically refer to cocoa powder, the dry powder made by grinding cocoa seeds and removing the cocoa butter from the dark, bitter cocoa solids; or it may refer to the combination of both cocoa powder and cocoa butter together.
Cocoa beans is one of the leading export commodity in Nigeria and rising international market prices for cocoa have continued to encourage Nigerian farmers to rehabilitate abandoned farms and also increase area under production. Growers returns have increased following the sharp rise in world price levels for cocoa caused by the conflict in Ivory Coast, the leading world producer. Over the last 5 years, Nigerian grower prices increased more than 50 percent to the current average of 460,000 Naira per MT.
There are 14 cocoa producing states in Nigeria and a total planted area of 640,000 hectares. Annual production has fluctuated between 250,000 and 320,000 tons over the past five years.
About 85 percent of total cocoa production is exported as cocoa beans while the remaining 15 percent is processed locally into butter, liquor, powder and cake before being mostly exported.
This report seeks to examine the financial viability or otherwise of establishing cocoa processing plant in Nigeria which involves the sourcing of raw cocoa seed and processing same to yield Cocoa Liquor, Cocoa Butter and Cocoa Powder.
Cocoa Liquor
Cocoa liquor, also known as chocolate liquor and cocoa mass, is a smooth liquid form of chocolate. It contains both cocoa solids and cocoa butter in roughly equal proportion. It is produced by taking cocoa beans that have been fermented, dried, roasted, and separated from their shells and grinding their center, the cotyledon. The chocolate liquor can then be cooled and moulded into blocks known as unsweetened baking chocolate. The liquor and blocks contain roughly 53 percent cocoa butter. Chocolate liquor contains no alcohol.
Cocoa Cake
Cocoa cake is the intermediate cocoa solids usually produced by hydraulic pressing after removing the bulk of the fat (cocoa butter) from loaded cocoa liquor. The first action is the breaking up of the cake, initially in sizable hard discs, into much smaller pieces by passing them through rotating toothed rollers. Most processors sell the resultant small lumps as ‘Kibbled’ cake. Kibbled cake can be pulverised and turned to cocoa powder by the process of grinding.
Cocoa Butter
Cocoa butter, also called theobroma oil, is the pale-yellow, edible natural vegetable fat of the cacao bean. Cocoa butter is extracted from the cacao beans and can be used to make chocolate, cocoa powder, pharmaceuticals, ointments, and toiletries. Cocoa butter has a mild chocolate flavor and aroma. During processing of the cacao bean, cocoa powder and cocoa butter are separated out at an early stage.
The two are recombined in the manufacture of regular (brown) chocolate bars. The confectionery known as white chocolate contains cocoa butter but not cocoa powder. Cocoa butter has a melting point of around 34 to 38 degrees Celsius (93 to 100 degrees Fahrenheit), rendering chocolate a solid at room temperature that readily melts once inside the mouth. Because of the melting temperature of cocoa butter, it is often used in pharmaceuticals as a base for suppositories.
It is able to be stored at room temperature, but readily melts at body temperature, releasing the medication. Cocoa butter is one of the most stable fats known, containing natural antioxidants that prevent rancidity and give it a storage life of two to five years, making it a good choice for non-food products. The smooth texture, sweet fragrance and emollient property of cocoa butter make it a popular ingredient in cosmetics and skin care products, such as soaps and lotions.
Cocoa Powder
Cocoa solids is a term for the non-fat component of liquor. It may also be called cocoa powder when sold as an end product. The fatty component of liquor is cocoa butter. The separation of the two may be accomplished by a press, or by the Broma process. Cocoa solids is what lend a chocolate bar its characteristic flavor and color, while cocoa butter is what provides smoothness and a low melting point. Cocoa powder is the last product in the secondary phase of the cocoa processing chain. It is derived from cocoa cake which is pulverized to become powder. There are two variants of cocoa powder.
These are natural cocoa powder and alkalized cocoa powder. The alkalized cocoa powder is obtained after the introduction of an alkalizing agent (sodium carbonate) at the nib stage during processing. The whole essence of introducing an alkalizing agent is to reduce the acidity of the powder in its natural state. The natural cocoa powder, just as its name implies, is without any alkalization. Both products are used in varying degrees in the production of cocoa based consumer products: Cocoa based beverage drinks, biscuits, chocolates etc.
Cocoa powder is usually chocolaty in colour. It is dry and in fine powder form. It is usually packed in 4 ply kraft paper bags with inner polythene lining. Cocoa solids are what contain most of the antioxidants associated with chocolate. Accordingly, health professionals recommend consuming chocolate in forms that are high in cocoa solids while low in cocoa butter, such as hot cocoa.
Domestic consumption of cocoa products is very insignificant and consists almost exclusively of cocoa powder used in breakfast beverages.

World consumption of cocoa and its bye products is estimated at 2 800 000 tons per year. The largest cocoa importers are Europe (more than 1.2 million tons per year) and the United States (0.4 million tons per year). The largest importers are Holland, the US, Germany, Britain and Brazil.

From the above figures, it is clear that there is a steady, ready and available export market for cocoa liquor, butter and powder.

Do you know you can access to over 50 market research reports and our monthly E- Magazine for 12 months for just N 5,000.
Click on the link below to know more about this offer.

At Foraminifera Market Research {www.foramfera.com}, we provide bespoke and up to date market research reports for start-ups and those already in business.

Our reports are designed to assist start-ups to understand the legal and financial requirements of starting the business, the market trends vis-a-vis demand and supply, competition, risk identification and mitigation strategies. 

Should you require our feasibility report on the above subject matter, please do use any of the means below to contact us.

Do you require one- on- one consultancy on the subject matter? Contact us with any of the details provided below to arrange a meeting

Office Phone Number: 01- 295 24 13 {Monday – Saturday; 8 am – 5 pm}
Mobile Number: +234 {0} 8033782777 {Monday – Saturday; 8 am – 6 pm}

E-Mail Address: enquiries@foramfera.com

Office Address: 

61-65 Egbe- Isolo Road,
Iyana Ejigbo Shopping Arcade,
Block C, Suit 39,
Iyana Ejigbo Bus Stop,
Ejigbo, Lagos.

Like and Follow us on 


HUMAN DEVELOPMENT PROGRAMMES AND TRAINING OPPORTUNITY IN NIGERIA

Our human development training programmes are designed to assist our client set-up their respective business on a sound footing.

The training cuts across different segment of the economy to include Agriculture, Export and Import, Food and Beverage, Manufacturing, Mining and Quarry, Oil and Gas, Retail Industry, Telecommunication, Tourism and Transportation and are facilitated by seasoned professionals in their respective fields.

Please do visit the link below to access available training programmes

We prepare business plan, feasibility study and market report for the small and medium scale industries and develop the entrepreneurial capacity of our client with the aim of providing the much needed business data in Nigeria.

In keeping with our vision of providing services that adds value to our clients business and resources to develop their business into a strong and visible global brand, we would like to introduce to you to our sister websites

www.nigeriaoilandgasportal.com {The one stop for the oil and gas industry in Nigeria}
www.nigeriabusinessplace.com {Online Business Forum}


The details in this article is based on information from various sources that we believe are reliable; however no representation is made that it is accurate or complete. While reasonable care has been taken in preparing the articles, no responsibility or liability is accepted for errors of fact or for any opinion expressed herein. The articles are for information purposes only. 

Foraminifera Market Research accepts no liability whatsoever for any direct or consequential loss arising from any use of the articles or its contents. 

The articles are for private circulation only and may only be distributed freely in its entire form. Any other use without the prior express consent of Foraminifera Market Research is prohibited.