Supply Chain Management Challenges in the Cocoa Export Value Chain in Osun State

📖 ABSTRACT/OVERVIEW

Nigeria's cocoa export sector, historically one of the country's most significant non-oil foreign exchange earners, faces persistent supply chain management deficiencies that undermine quality, volume consistency, and competitive positioning in international markets. Osun State, in the South West geopolitical zone, is a traditional cocoa-producing state with an active network of farmers, buying agents, and exporters. This study examines supply chain management challenges in the cocoa export value chain in Osun State from the perspective of licensed buying agents and exporters. A sample of 40 buying agents and 15 export firms was selected purposively from cocoa marketing areas in Ife, Ilesa, and Osogbo. Data on procurement logistics, quality management, storage practices, finance, and export documentation were collected through structured interviews. Value chain analysis and the bottleneck mapping method were applied. Results indicate that quality deterioration between farm gate and export warehouse is the most critical supply chain failure, attributable to inadequate farmer training on post-harvest fermentation and drying, combined with inappropriate storage at buying agent premises. Financial bottlenecks at the buying agent level prevent timely aggregation of sufficient volumes for export consignments. Regulatory documentation delays add an average of 12 days to export cycles. The study recommends co-investment by the Nigerian Export Promotion Council in supply chain training for buying agents and investment in humidity-controlled storage facilities at key aggregation points in Osun State to preserve quality and support consistent export supply. Keywords: supply chain, cocoa export, Osun State, quality management, value chain

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Departments# Farm Management