How Much Can You Really Earn from a 1–10 Acre Cocoa Farm in Nigeria? A Real Investor Breakdown
Cocoa remains one of Nigeria’s most valuable cash crops and a leading non-oil export. With global prices hitting record highs, more Nigerians are asking: “How much can I actually earn from cocoa farming?” Whether you’re planning to cultivate just one acre or expand up to ten, this article gives you a clear breakdown of what to expect—covering startup costs, annual yields, potential revenue, and profit drivers.
1. What You Need to Start Cocoa Farming
Cocoa thrives in Nigeria’s rainforest belt. The best-performing states include Ondo, Cross River, Ekiti, Ogun, Osun, Oyo, Delta, Edo, and Abia. The ideal environment includes:
Annual rainfall: 1,000 to 2,000 mm
Temperature: 21°C to 32°C
Soil: Well-drained, loamy, slightly acidic
Shade: Partial, especially in early years
Land Cost and Preparation
If you don’t already own land, farmland prices range from ₦500,000 to ₦800,000 per acre in rural locations. Once secured, land preparation costs include:
| Item | Per Acre Estimate |
|---|---|
| Land clearing | ₦40,000–₦80,000 |
| Seedlings (improved) | ₦60,000–₦80,000 |
| Labour for planting | ₦20,000–₦30,000 |
| Fertiliser and inputs | ₦12,000–₦20,000/year |
| Shade tree planting | Optional, ₦10,000–₦15,000 |
Multiply these by the number of acres you plan to cultivate.
2. Cocoa Planting and Growth Timeline
Cocoa is a long-term crop. Here’s what to expect:
Spacing: 3m x 3m allows ~400–500 trees per acre
Varieties: Improved hybrids mature in 18–30 months
Traditional varieties: Mature in 3–5 years
Productive lifespan: 25–30 years with proper care
During the first 2–3 years, intercropping with cassava, maize, or plantain can help generate interim income.
3. Cocoa Yield Expectations by Acreage
Yield improves with tree maturity and farm management. Below is a yield summary per acre:
| Farm Age | Yield Per Acre (kg) | Notes |
|---|---|---|
| Year 2–3 | 100–150 kg | Early fruiting hybrids only |
| Year 4–6 | 300–400 kg | Peak begins |
| Year 7+ | 500–1,000 kg | Well-managed farms |
On average, one acre of mature cocoa can produce about 0.5 to 1.0 tonnes of dry cocoa beans.
4. Cocoa Market Prices in Nigeria
Cocoa prices vary based on global demand, quality, and location. Recent trends show:
Local farm gate: ₦55,000 per 50 kg bag (~₦1.1 million per tonne)
Export-quality beans: ₦1.3 million to ₦1.5 million per tonne
Global price (2024–2025): Over $10,000 per tonne due to global shortages
5. Revenue Projections from 1 to 10 Acres
Assuming an average of 1 tonne per acre and a conservative price of ₦1.1 million per tonne:
| Acreage | Estimated Yield | Gross Revenue (₦) |
|---|---|---|
| 1 acre | 1 tonne | 1.1 million |
| 5 acres | 5 tonnes | 5.5 million |
| 10 acres | 10 tonnes | 11 million |
At export prices of ₦1.4 million/tonne, income can rise by 20–30%.
6. Cost and Profit Breakdown
Annual Operational Costs (per acre after maturity)
Labour: ₦30,000–₦50,000
Fertiliser/pesticide: ₦15,000–₦25,000
Harvesting and drying: ₦10,000–₦20,000
Transport and marketing: ₦10,000–₦15,000
Estimated Total: ₦70,000–₦110,000 per acre/year
Annual Net Profit (per acre)
Revenue: ₦1.1 million
Costs: ₦100,000
Net Profit: ~₦1 million per acre
Multiply for larger acreages accordingly.
7. Common Challenges in Cocoa Farming
Pests and Diseases: Black pod disease, capsids, and stem borer can cut yields by 30% if unmanaged.
Aged Trees: Farms older than 20 years may become unproductive without pruning or replanting.
Labour Shortage: Reliable farmhands are crucial, especially during planting and harvest seasons.
Market Access: Poor road networks and middlemen reduce profits.
Climate Variability: Droughts and irregular rains can disrupt flowering and pod development.
8. How to Maximize Cocoa Farm Profitability
Use disease-resistant improved varieties like CRIN TC1–TC5.
Apply compost and mulch to retain moisture and improve yield.
Intercrop with early-income crops in the first 2–3 years.
Join cooperatives or partner with licensed exporters.
Invest in fermentation boxes and proper drying to increase cocoa bean quality and price.
9. Is Cocoa Farming in Nigeria Worth It?
Yes, cocoa farming can generate strong, long-term returns if managed properly. While it requires significant patience and capital in the early years, mature farms generate consistent income for 20+ years. With the current global price trends, it is one of the best long-term agricultural investments in Nigeria.
10. Start Your Cocoa Investment with Confidence
At Newwine Realty Limited, we help new and experienced investors secure fertile farmland for cocoa cultivation in top cocoa-producing zones. Our services include:
Land preparation and planting
Access to trained labour and agronomists
Ongoing farm supervision and harvest support
Whether you want to manage your own cocoa farm or prefer a managed farming model, we are here to guide you every step of the way.
Thinking of owning a cocoa farm?
Visit www.newwinerealty.com.ng to get started or speak to an investment advisor today.
