By Magunda Paul
Background
Cocoa plant is an ever-green tree that produces pods. The pods contain beans which are fermented and dried to produce chocolate. Cocoa is an equatorial crop well suited to grow in hot and humid areas with a maximum annual average of 30 – 300C. The crop thrives under shade areas with annual rainfall between 1,500 mm and 2, 000 mm per year. In Uganda, Cocoa is most grown in the central, western, south-eastern, and south-western regions, in the districts of Mukono, Buikwe, Bundibugyo, Masindi and some parts of Busoga. The most common commercial varieties grown in Uganda include, Amazon, Trinitaria and Amelanedro due to their big beans and high yielding attributes. It is estimated that cocoa covers ~20,000 ha of farmland in Uganda from about 15,000 small holder farmers in the above-mentioned regions.
The major cocoa promoters and buyers in Uganda include the Swisscontact, ICAM Chocolate (U) LTD, Esco (U) LTD, UGADEN, and Semuliki Cooperative Society. Cocoa processing is mostly done in Europe. Data from Uganda Export Promotion Board (UEPB) shows that Uganda exported 14, 529 tons worth $35M in 2010, while in 2011, they exported 17935 tons worth $44M.
It is worth noting that ICAM chocolate (U) LTD, has a bid to export 5,000 tons of Cocoa dried beans annually but can only afford only 2,000 tons annually due to low production in Uganda.
Agronomy
The Cocoa tree is raised from seeds inside the nursery. This enables seedlings develop a strong root system essential to sustain the plant in the garden. Note: It is also important to have certified clean seedlings for planting; free from pests, diseases, and bites. Inside the nursery, Cocoa takes ~4 months from the seed to seedlings, so farmers are always recommended to inquire the age of the seedlings before planting as the survival rate for young seedlings is always low.
Farmers are recommended to plant at the on-set of rains. According to Uganda’s climate, planting occurs in the months of March for the first season, and September for the second season. Cocoa is planted at a spacing of 3M X 3M, resulting in 440 plants per acre. However, before planting, farmers are strongly advised to prepare the garden and dig holes before the onset of rains. The farmers can add organic manure to the holes.
After, planting routine practices include: –
- Weeding
- Pruning
- Fertilizer application
- Harvesting
Please refer to the table below for the average cost of each practice.
Harvesting
Ready cocoa is identified by change of colour from green or red to yellow which is an indicator of ripening. The first harvest of cocoa is realised when the tree is about 2.5 to 3 years after planting. The yield is expected to increase at rate of ~10% each year and is maximized when the Plant is 6 years old. The average yield per plant is 9kg per year for the first harvest. Cocoa can be sold as fresh ripe beans or dried fermented beans. However, most companies prefer fresh produce to take full control of the quality due to technical requirements during fermentation and drying.
The current price of dried cocoa is between 5000/= and 6000/= (Uganda shillings) per kg. In contrast, each fresh kilogram of Cocoa cost on average 3500/= (Uganda shillings).
Economics of Cocoa Enterprise
The table below shows the expenses, revenue, and the profitability of Cocoa Project
Category | Item | Item Type | Quantity Per Acre | Frequency Per Year | Unit Cost | Total Cost (UGX) |
Inputs | Seedlings | Number | 440 | 1 | 560 | 246,400 |
Compost manure | Trucks | 4 | 3 | 120,000 | 1,440,000 | |
Fertilizer DAP* | Bags | 2 | 3 | 135,000 | 810,000 | |
Fertilizer MOP* | Bags | 1 | 3 | 110,000 | 330,000 | |
Chemicals and Pesticides | Misc. | 1 | 3 | 90,000 | 270,000 | |
Sub-total | 3,096,400 | |||||
Labour | Land Clearing | Man days | 1 | 1 | 120,000 | 120,000 |
Ploughing | Man days | 1 | 1 | 120,000 | 120,000 | |
Hallowing | Man days | 1 | 1 | 120,000 | 120,000 | |
Planting and Digging Holes for the shade trees | Man days | 1 | 1 | 24,000 | 24,000 | |
Planting and Digging Holes | Man days | 1 | 1 | 350,000 | 350,000 | |
Weeding | Man days | 1 | 12 | 80,000 | 960,000 | |
Pruning | Man days | 1 | 12 | 30,000 | 360,000 | |
Pesticide application | Man days | 1 | 3 | 30,000 | 90,000 | |
Applying fertiliser | Man days | 1 | 3 | 25,000 | 75,000 | |
Sub-total | 2,219,000 | |||||
Total | 5,315,400 | |||||
Post- harvest handling | Collecting and pod breaking | Man days | 1 | 4 | 70,000 | 280,000 |
Fermentation | Misc. | 1 | 1 | 240,000 | 240,000 | |
Drying | Bags | 1 | 1 | 84,000 | 84,000 | |
Storage | Bags | 1 | 1 | 12,000 | 12,000 | |
Sub-total | 616,000 | |||||
Total Expense | 5,931,400 | |||||
Revenue/ profitability | Item Type | Quantity Per Tree (Kgs) | No. of Trees/ Acre/Year | Unit Price | Gross Revenue | Profit Margin |
1st Yr.’s fruits | 9 | 440 | 6,000 | 23,760,000 | 17,828,600 | |
2nd Yr.’s fruits | 10 | 440 | 6,000 | 26,400,000 | 20,468,600 | |
3rd Yr.’s fruits | 11 | 440 | 6,000 | 29,040,000 | 23,108,600 | |
4th Yr.’s fruits | 13 | 440 | 6,000 | 34,320,000 | 28,388,600 | |
5th Yr.’s fruits | 14 | 440 | 6,000 | 36,960,000 | 31,028,600 | |
6th Yr.’s fruits | 15 | 440 | 6,000 | 39,600,000 | 33,668,600 | |
*It was observed that the yields were higher to farmers who applied artificial fertilizers than conventional farmers with an additional 5kg per plant per year.
Note: The cost and revenue estimates in the table above are based on.
- 100% survival rate of cocoa trees in the garden after planting
- 10% yield increment per tree every year
- 1 acre piece of land
- Application of artificial fertilizers.
Discussion
A cocoa plantation starts yielding 2 to 3 years after planting. In the table above, the costs are estimated over a period of 3 years. For example, costs for establishing a plantation reflect the farmers’ expenditure in the first 3 years where they don’t harvest. We also consider a farmer that uses good agronomic practices i.e., timely weeding, pruning and applies both fertilizers and pesticides on time. On average, the farmer will spend about Ug. Shs. 5.2 million per acre over a 3-year period. A farmer that practices good agronomic methods will spend Ug. Shs. 1.765 million on average per acre per year, as recurring expenditures on fertilizers, chemicals, pesticides, bags, and labour.
Processing of fresh cocoa beans into dry cocoa involves fermentation, drying, and storage costs up to a total of Ug. Shs. 336,000 per acre of harvest.
A commercial farmer who follows all recommended agronomic practices will earn more returns than the traditional farmer who doesn’t. This is because the additional cost during production is outweighed by the extra income. Based on the profitability of cocoa, it would take over one year to recover the initial cost of setting up the plantation. After one year, the farmer should be able to break-even.
At Bakugu Agricultural Nurseries, two varieties, Amelenado, and Trinitario are being raised. Amelenado is characterized by hard pods containing between 25- 35 beans inside which are either pale purple or white in color. The beans have a chocolate flavor and the pods turn yellow on ripening. In contrast, Trinitario produces softer pods containing between 20- 30 beans inside. Similarly, the beans have a chocolate flavor and the pods turn red on ripening.
Altogether, we have about 3000 mature seedlings for each variety.
magpaul11@gmail.com
The author is an Agricultural Entrepreneur and a Businessman
It’s worthy . I have to read it thoroughly and take notes. Thanks for sharing
A fascinating discussion is definitely worth comment. I do believe that you should publish more about this issue, it may not be a taboo matter but usually folks dont speak about such subjects. To the next! Cheers!!
Thanks for your blog, nice to read. Do not stop.
Great work you are doing. I think its also neccessary to sensitize local farmers adopt cultivation of this crop because given its perrenial nature its easier to look after than most tropical crops.