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Boost for Cocoa Entrepreneurs

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Cocoa farm
  • Boost for Cocoa Entrepreneurs

A new cocoa economy may be on the horizon as an international organisation, German International Cooperation (GIZ), is teaching agro entrepreneurs to explore new income possibilities across the cocoa industry. DANIEL ESSIET reports.

An international organisation, German International Cooperation (GIZ), is giving agro entrepreneurs the tools they need to turn cocoa production into a viable business.

With so much money declared by international chocolate makers yearly, the organisation is determined to lift smallholder farmers out of poverty.

Cocoa production accounts for 10 percent of Nigeria’s Gross Domestic Product (GDP) and supports 10 million people, which translates to about 30 per cent of Nigeria ’s population.

GTZ’s long-term aim is to help the farmers become independent members of an agricultural “value chain”.

Across Ondo State, 18,648 cocoa farmers, made up of 7,449 women and 11,199 men in 648 groups across 10 local government areas, have received the Farmer Business School (FBS) training supported by the German Development Cooperation-Sustainable Smallholder Agribusiness (GIZ-SSAB) programme. The core curriculum covers business, good agricultural practice and cooperative skills.

According to GIZ Country Director, Dr. Thomas Kirsch, “the FBS has succeeded in changing the orientation of farmers, who now see farming as a business enterprise that needs to be well planned, to reap the highest returns from the enterprise”.

Farmers have also recorded increase income, production and yield, and group sales and purchases of input.

Speaking at the inauguration of the FBS Farmers Cooperative Multipurpose Union in Akure, Kirsch said the partnership between the organisation and the Federal Ministry of Agriculture and Rural Development has brought business skills training to 89,040 cocoa farmers in six states – Abia, Cross River, Edo, Ekiti, Ondo and Osun.

The trained farmers are coordinating the groups in each local government of the states. The apex body known as Ondo State FBS Farmers’ Cooperative Multipurpose Union Ltd has been inaugurated.

Ondo State FBS Farmers Cooperative Multipurpose Union Chairman, High Chief Ebenezer Adenisimi, said the FBS training had helped farmers to adopt business skills in their farms.

These, he noted, include record keeping of input and output, savings in banks, group purchase of farm input in large scale, group sales of farm produce to off-takers, diversification of production to generate additional income, organising and registering of groups as cooperative societies, accessing financial services from banks, keeping of farm records and putting to use good agricultural practices.

An FBS-trained farmer and leader of Igba-Otun FBS Cooperative Society, Awopeju Village, Mr. Julius Urom, noted that the group has invested in cocoa nursery, fish farming, poultry and piggery to augment their cocoa income.

He said 23 members of the society, who invested in the business with about N20,000, have increased their income base to over N100,000 inone year.

Ondo State Governor, Mr. Rotimi Akeredolu, lauded GIZ for the training which, according to him, led to the formation of the Cooperative Union.

He said: “The farmers’ organisation we are about to inaugurate is a product of intervention from a Development Partner – GIZ, an outfit of the Federal Ministry of Economic Co-operation and Development of Germany.”

The governor, who was represented by his deputy, Mr. Agboola Ajayi, praised the farmers for forming the cooperative society.

This, according to the governor, was “to enable them own the programme and become self-sustaining financially as producer groups and become less dependent on the government”.

The governor announced the donation of N25.75 million for the expansion of the Farmers Business School programme.

He said this was in fulfillment of his pledge to “work with genuine stakeholders in the development of the state”.

The Regional Director, GIZ-SSAB Programme, Dr. Annemarie Matthess, said FBS is innovative. “It fosters the business mind and skills of agricultural producers, be it men or women. After Farmer Business School, the majority of farmer graduates invest in cocoa and food production for more income,” she noted.

Matthess, represented by Ayo Akinola, a Senior Technical Advisor to GIZ-SSAB, said the FBS’s success story in five cocoa producing countries, including Nigeria, informed the expansion of FBS into 15 African countries to reach cocoa, coffee, cassava, rice, cotton, pineapple, milk, olives and tomatoes producers.

She added that the registration of new cooperatives and multipurpose cooperatives unions is “a particular achievement in Nigeria compared to our other partner-countries”.

She noted that of the 95 new multipurpose cooperatives registered between 2011 and 2016 in Ondo, 84 have embedded the acronym “FBS” in their names to show where they come from and what drives them;, adding that networking among the cooperatives and support provided by the state ADP led to the registration of the FBS Farmers Cooperative Multipurpose Union Ltd.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

Crude Oil

Oil Prices Decline for Third Consecutive Day on Weaker Economic Data and Inventory Concerns

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Crude Oil

Oil prices extended their decline for the third consecutive day on Wednesday as concerns over weaker economic data and increasing commercial inventories in the United States weighed on oil outlook.

Brent oil, against which Nigerian oil is priced, dropped by 51 cents to $89.51 per barrel, while U.S. West Texas Intermediate crude oil fell by 41 cents to $84.95 a barrel.

The softening of oil prices this week reflects the impact of economic headwinds on global demand, dampening the gains typically seen from geopolitical tensions.

Market observers are closely monitoring how Israel might respond to Iran’s recent attack, though analysts suggest that this event may not significantly affect Iran’s oil exports.

John Evans, an oil broker at PVM, remarked on the situation, noting that oil prices are readjusting after factoring in a “war premium” and facing setbacks in hopes for interest rate cuts.

The anticipation for interest rate cuts received a blow as top U.S. Federal Reserve officials, including Chair Jerome Powell, refrained from providing guidance on the timing of such cuts. This dashed investors’ expectations for significant reductions in borrowing costs this year.

Similarly, Britain’s slower-than-expected inflation rate in March hinted at a delay in the Bank of England’s rate cut, while inflation across the euro zone suggested a potential rate cut by the European Central Bank in June.

Meanwhile, concerns about U.S. crude inventories persist, with a Reuters poll indicating a rise of about 1.4 million barrels last week. Official data from the Energy Information Administration is awaited, scheduled for release on Wednesday.

Adding to the mix, Tengizchevroil announced plans for maintenance at one of six production trains at the Tengiz oilfield in Kazakhstan in May, further influencing market sentiment.

As the oil market navigates through a landscape of economic indicators and geopolitical events, investors remain vigilant for cues that could dictate future price movements.

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Commodities

Dangote Refinery Cuts Diesel Price to ₦1,000 Amid Economic Boost

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Aliko Dangote - Investors King

Dangote Petroleum Refinery has reduced the price of diesel from ₦1200 to ₦1,000 per litre.

This price adjustment is in response to the demand of oil marketers, who last week clamoured for a lower price.

Just three weeks ago, the refinery had already made waves by lowering the price of diesel to ₦1,200 per litre, a 30% reduction from the previous market price of around ₦1,600 per litre.

Now, with the latest reduction to ₦1,000 per litre, Dangote Refinery is demonstrating its commitment to providing accessible and affordable fuel to consumers across the country.

This move is expected to have far-reaching implications for Nigeria’s economy, particularly in tackling high inflation rates and promoting economic stability.

Aliko Dangote, Africa’s richest man and the owner of the refinery, expressed confidence that the reduction in diesel prices would contribute to a drop in inflation, offering hope for improved economic conditions.

Dangote stated that the Nigerian people have demonstrated patience amidst economic challenges, and he believes that this reduction in diesel prices is a step in the right direction.

He pointed out the aggressive devaluation of the naira, which has significantly impacted the country’s economy, and sees the price reduction as a positive development that will benefit Nigerians.

With this latest move, Dangote Refinery is not only reshaping the fuel market but also reaffirming its commitment to driving positive change and progress in Nigeria.

The reduction in diesel prices is expected to provide relief to consumers, businesses, and various sectors of the economy, paving the way for a brighter and more prosperous future.

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Crude Oil

IEA Cuts 2024 Oil Demand Growth Forecast by 100,000 Barrels per Day

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Crude Oil

The International Energy Agency (IEA) has reduced its forecast for global oil demand growth in 2024 by 100,000 barrels per day (bpd).

The agency cited a sluggish start to the year in developed economies as a key factor contributing to the downward revision.

According to the latest Oil Market Report released by the IEA, global oil consumption has continued to experience a slowdown in growth momentum with first-quarter growth estimated at 1.6 million bpd.

This figure falls short of the IEA’s previous forecast by 120,000 bpd, indicating a more sluggish demand recovery than anticipated.

With much of the post-Covid rebound already realized, the IEA now projects global oil demand to grow by 1.2 million bpd in 2024.

Furthermore, growth is expected to decelerate further to 1.1 million bpd in the following year, reflecting ongoing challenges in the market.

This revision comes just a month after the IEA had raised its outlook for 2024 oil demand growth by 110,000 bpd from its February report.

At that time, the agency had expected demand growth to reach 1.3 million bpd for 2024, indicating a more optimistic outlook compared to the current revision.

The IEA’s latest demand growth estimates diverge significantly from those of the Organization of the Petroleum Exporting Countries (OPEC). While the IEA projects modest growth, OPEC maintains its forecast of robust global oil demand growth of 2.2 million bpd for 2024, consistent with its previous assessment.

However, uncertainties loom over the global oil market, particularly due to geopolitical tensions and supply disruptions.

The IEA has highlighted the impact of drone attacks from Ukraine on Russian refineries, which could potentially disrupt fuel markets globally.

Up to 600,000 bpd of Russia’s refinery capacity could be offline in the second quarter due to these attacks, according to the IEA’s assessment.

Furthermore, unplanned outages in Europe and tepid Chinese activity have contributed to a lowered forecast of global refinery throughputs for 2024.

The IEA now anticipates refinery throughputs to rise by 1 million bpd to 83.3 million bpd, reflecting the challenges facing the refining sector.

The situation has raised concerns among policymakers, with the United States expressing worries over the impact of Ukrainian drone strikes on Russian oil refineries.

There are fears that these attacks could lead to retaliatory measures from Russia and result in higher international oil prices.

As the global oil market navigates through these challenges, stakeholders will closely monitor developments and adjust their strategies accordingly to adapt to the evolving landscape.

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