Nigeria has become a full member of the International Coffee Organisation (ICO), which was ratified by the federal government. Adeniyi Adebayo, the Minister of Industry, Trade and Investment, stated that membership in the ICO gives Nigeria the opportunity to benefit from the organization and actively participate in creating coffee policies on coffee trade worldwide. Adebayo further stated that the ratification would enable Nigeria to have access to finance for coffee farmers, so as to boost coffee production in Nigeria. Nigeria has over a million coffee growers in all geo-political zones of the country, with less than 2 per cent of world coffee production, which shows that the country is lagging behind in coffee production and marketing.
The main objective of the International Coffee Agreement (ICA) 2007 is to strengthen the global coffee sector and promote its sustainable expansion in a market-based environment for the betterment of all participants in the sector. The 2007 Agreement strengthens the ICO’s role as a forum for intergovernmental consultations, facilitates international trade through increased transparency, and promotes a sustainable coffee economy for the benefit of all stakeholders and particularly of small-scale farmers in coffee producing countries.
Coffee is one of the world’s most important commodity exports, produced in more than 50 developing countries. It makes an important contribution to socio-economic development and poverty alleviation and is of exceptional economic importance to exporting countries, some of which rely on coffee for over half their export earnings. With some 94 per cent of the world’s coffee produced by 25 million smallholder farmers and their families, coffee is an important source of cash income and responsible for significant employment. However, low prices for coffee have led to farmers neglecting their farm, which jeopardises the supply of quality coffee to the coffee industry in consuming countries.
As the only international commodity body for coffee, the ICO has a focal role to play in channeling international cooperation by almost 80 governments and developing effective political solutions and coffee policy. Its exporting members account for over 98 per cent of world coffee production, and its importing members are responsible for around 83 per cent of coffee consumption in importing countries. ICO Members have access to the only world-wide forum for discussion on an inter-governmental level on coffee policy, coffee trade policy and related matters, giving access to the know-how and experience of other countries in structuring their coffee economies.
ICO Members have access to a unique forum where producing and consuming countries can discuss key issues and difficulties relating to international coffee trade and develop timely policies and solutions. Membership in the ICO will enable Nigeria to access the organisation’s resources to develop its coffee industry, which will boost the country’s economy, create employment opportunities, and provide a source of income for farmers.
The ICO will also provide access to funding for coffee development projects, such as coffee market development, access to credit, the development of commodity exchanges, and the strengthening of the commercial and management capacity of producers. The ICO has also promoted projects designed to reduce the incidence of major pests and diseases affecting coffee, such as the coffee berry borer, tracheomycosis and coffee white stem borer, thereby increasing crop quality and revenue for small farmers.
In conclusion, membership in the ICO is a step in the right direction for the coffee industry in Nigeria. The country stands to benefit immensely from the organisation’s resources to develop its coffee industry, which will boost the country’s economy, create employment opportunities, and provide a source of income for farmers. The ICO will also provide access to funding for coffee development projects, which will increase crop quality and revenue for small farmers, reduce pests and diseases affecting coffee, and improve the country’s coffee production and marketing.
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