Problems with the supply of jute bags made in India and Bangladesh are affecting Nigerian cocoa exporters, reports Bloomberg. The recent escalation of Covid cases in the region has led to a supply disruption, and the country has been relying on these bags which protect the quality of the beans in shipping.
International buyers insist that the cocoa is shipped using hydrocarbon-free bags, and Nigeria, which has no manufacturing capacity themselves, has been relying on imports.
The situation is difficult as cocoa is Nigeria’s leading export crop, and is the fourth largest exporter globally. The Netherlands imports about 43% of Nigeria’s production, and it’s unknown if there will be a follow-on impact.
Mufutau Abolarinwa, president of the Cocoa Association of Nigeria estimates that Nigeria could lose as much as $700 million in revenues from cocoa bean exports.
We’re afraid of taking the orders as production is slowing. Only private companies are now in business, which added to a supply squeeze. –Rezaul Karim, vice-chairman of Bangladesh Jute Goods Exporters Association.
