How Johnvents is turning Nigeria’s cocoa challenges into a global agribusiness

Through the years, Johnvents, a subsidiary of Capitalsage Holdings, has leveraged Nigeria’s agricultural attainable to broaden an built-in agribusiness spanning commodity buying and selling, agro-processing. On this interview with PREMIUM TIMES, John Alamu, founder and crew managing director of Capitalsage Holdings, discusses how Johnvents is reworking Nigeria’s agribusiness panorama via investments in cocoa and cashew processing, vegetable oil manufacturing, animal feed production and different value-added merchandise.

Mr Alamu discusses the studies that impressed his entrepreneurial adventure, the demanding situations of gaining access to finance and markets, and the corporate’s efforts to give a boost to cocoa high quality via farmer coaching, sustainable practices, and get entry to to advanced seedlings. He additionally highlights the wish to increase home cocoa manufacturing, substitute growing old cocoa bushes and make stronger agricultural processing to scale back Africa’s dependence on uncooked commodity exports.

Excerpt

PT: What motivated you to enter cocoa-product production?

Mr Alamu: I began my occupation on the World Institute of Tropical Agriculture (IITA) in Ibadan. I’m additionally the proud son of a trainer who taught agriculture, and I graduated from the Federal College of Agriculture, Abeokuta. So, while you have a look at my circle of relatives background, training and occupation, you’ll see that agriculture has all the time been a part of my adventure. I started my occupation at IITA, a analysis institute, as a tracking and analysis specialist. This allowed me to paintings without delay with farmers. On the time, we weren’t operating in particular on cocoa. We labored with farmers cultivating cassava, maize and different vegetation.

Thru our analysis, farmers many times known a number of demanding situations, however two persistently stood out: get entry to to finance and get entry to to markets. The reaction to those demanding situations was once ceaselessly extra analysis, and the cycle persevered. I made up our minds to not see those two primary issues within the agricultural sector simply as demanding situations. As a substitute, I noticed them as alternatives to discover. I had a number of concepts about the way to benefit from those alternatives and switch them into viable companies. I noticed them as ventures I may just pursue, and I imagine that’s how the corporate title, Johnvents, happened. Our preliminary industry interested by coaching farmers in just right agronomic practices, purchasing their produce, and promoting it to the marketplace.

From there, we expanded into commodity buying and selling. We equipped maize seedlings and grains to internally displaced individuals’ camps to give a boost to meals safety efforts promoted by way of building finance establishments, the Global Meals Programme, Catholic Aid Services and products and different organisations. Alternatively, once I began my entrepreneurial adventure, I didn’t restrict myself to agriculture. I additionally established a monetary products and services industry referred to as Credit score Assistants Funding Restricted, which has since grown into Capital State Era Workforce.

At one level, I travelled to Akure to marketplace a microfinance financial institution product. The talk over with took me to a web site beside our present manufacturing unit in Akure, owned by way of a cocoa cooperative conglomerate. The cooperative knowledgeable me that it had a distressed, moribund manufacturing unit and was once in search of buyers. Alternatively, I knew not anything in regards to the manufacturing unit; timber overgrown it, and the equipment wanted consideration. That have sparked my hobby. I instructed them I used to be prepared to procure the manufacturing unit. I requested the cooperative for a versatile fee construction and lend a hand leveraging its emblem. I additionally asked get entry to to human sources, together with engineers who may just give a boost to the operation. One of the most engineers really helpful to us was once Engineer Gomolu. He’s nonetheless on our board lately as the manager director, technical, at Johnvents Cocoa.

That was once how the tale started.

We secured financing from the World Finance Company to refurbish the manufacturing unit and obtain new equipment for our Akure operations. From there, we additional bought Top rate Cocoa Merchandise in Oyo State. The industry become much more attention-grabbing as we varied past cocoa.

These days, we procedure cashews at our Ondo State manufacturing unit, with a capability of 30,000 metric tonnes. We even have 10 crops in Ondo that procedure cashews into kernels and shells, procedure soybeans into soybean oil and soybean meal, and run an animal feed mill.

We’ve additionally expanded considerably into fast-moving shopper items (FMCG). We procedure cocoa into merchandise similar to Johnvents Choco Pops, Johnvents Choco Cubes, and Johnvents chocolate, together with merchandise for kids. We even have our personal bottled-water emblem.

We function around the agricultural price chain, together with upstream, midstream, and downstream actions. Our imaginative and prescient is to change into a really world and inclusive agribusiness that facilitates world delivery chains, specifically in meals manufacturing and meals safety. We recently function in 19 nations, and we plan to consolidate our presence in the ones markets by way of transitioning from commodity buying and selling against agricultural processing. Sufficient is sufficient. Africa has spent an excessive amount of time speaking in regards to the wish to prevent exporting uncooked commodities. We are not looking for to sign up for the refrain of lawsuits. We wish to stay construction factories and converting that narrative in a vital method.

PT: How do you make certain the standard of your uncooked fabrics, given considerations in regards to the high quality of cocoa beans sourced in Nigeria?

Mr Alamu: High quality merchandise start with number one manufacturing. It begins at the farm. Johnvents has invested considerably in a strong sustainability programme. I will have to point out that Johnvents is Rainforest Alliance-certified. This certification validates our sustainability efforts. What will we do for farmers? We hyperlink them with related agricultural analysis establishments, together with the Cocoa Analysis Institute of Nigeria (CRIN), which gives get entry to to advanced, high-yielding types. Long gone are the times when farmers needed to wait 5 years for cocoa bushes to mature. Some types now mature in not up to 3 years, and a few reportedly in as low as 18 months. Step one is giving farmers get entry to to top quality seedlings.

Secondly, via our sustainability programme, we attach them with suitable financing companions to give a boost to get entry to to finance. We additionally teach them in just right agronomic practices.

These days, we now have about 40,000 farmers below our programme, making it virtually inconceivable to paintings with each and every farmer in my view. To deal with this, we use other methods. Some farmers are organised into cooperatives, during which we have interaction with them, whilst others are hooked up via our native purchasing brokers. Our farmers and native purchasing brokers are licensed, and our factories are recertified as neatly. As a result of a lot of Nigerian cocoa is destined for Europe, we will have to agree to related Eu Union rules and sustainability necessities. Our sustainability programme has helped us deal with those necessities.

An important percentage of the cocoa we maintain is now compliant with the Eu Union Deforestation Legislation (EUDR).

This comes to addressing problems similar to traceability and kid labour, making sure that youngsters don’t seem to be despatched to farms after they will have to be in class. It additionally covers pesticide residues in vegetation. Thru our coaching programmes, farmers be informed which insecticides to make use of and the best amounts. Those problems prior to now made Nigerian cocoa much less aggressive in global markets.

We’ve a cocoa bean processing capability of 48,000 metric tonnes. Alternatively, Nigeria’s cocoa manufacturing is declining, with annual output estimated at 300,000 metric tonnes. One problem is that our competition don’t seem to be simply different cocoa processors; additionally they come with uncooked cocoa bean exporters. Uncooked bean exporters revel in shorter industry cycles as a result of they don’t wish to retailer huge amounts of cocoa in warehouses for prolonged classes or dedicate the considerable operating capital processors require.

As processors, we will have to grasp inventory and tie up capital whilst ready to procedure and promote our merchandise. This places us at an obstacle when put next with uncooked bean exporters. We recognise that Nigeria’s cocoa delivery won’t meet our wishes except the rustic develops a planned schedule to extend cocoa manufacturing.

Past our sustainability programme, which addresses present cocoa farms, we also are operating to exchange outdated cocoa bushes, as many in manufacturing are growing old.

We’ve additionally advanced our personal agroforestry fashion, which we’re recently imposing in Ondo and Move River states. We admire the state governments’ give a boost to. Ondo State has supplied us with roughly 1,000 hectares of land, the place cocoa farmers can personal plots and identify cocoa farms consistent with prescribed high quality requirements. The Move River State Executive has supplied us with roughly 7,000 hectares. We can proceed to recommend for give a boost to from different cocoa-producing states. We’ve written to state governments and are anticipating their reaction. We’re waiting to paintings with them to make extra land to be had for cocoa manufacturing. Nigeria wishes to extend its output to compete with different primary cocoa-producing nations. Côte d’Ivoire, for example, produces greater than 1.2 million metric tonnes of cocoa yearly, whilst Ghana produces roughly 700,000 metric tonnes. Nigeria was once as soon as some of the global’s main cocoa manufacturers. I imagine we will go back to that place by way of making an investment in manufacturing, bettering farm productiveness, and increasing the rustic’s cocoa-growing capability.

PT: With per 30 days electrical energy expenses reportedly hitting ₦45 million, how shut is Johnvents to transitioning into a completely self-sustained renewable calories fashion, and what timeline will have to buyers be expecting for this transfer?

Mr Alamu: Power performance and the transition to cleaner calories are strategic priorities for strengthening Johnvents Workforce’s operational resilience, price performance, and environmental efficiency. Given the energy-intensive nature of our processing amenities, we’re taking a phased, site-specific strategy to figuring out viable renewable calories answers.

As reported in our 2025 Sustainability Document, 39.41% of the Workforce’s calories intake got here from renewable and low-carbon resources. Development in this baseline, we’re dedicated to assessing renewable calories alternatives throughout our amenities, figuring out energy-efficiency enhancements and comparing the technical and business feasibility of answers similar to solar energy and effort garage.

In parallel, we’re strengthening our greenhouse gasoline accounting by way of calculating and tracking our Scope 1 and Scope 2 emissions to grasp our emissions footprint higher, determine key relief alternatives, and monitor development through the years. Those insights will lend a hand tell our calories transition priorities and give a boost to the improvement of a sensible, data-driven decarbonisation roadmap. Our subsequent steps will center of attention on assessing site-level calories call for, comparing funding necessities and prioritising projects in keeping with their attainable to scale back grid dependence, calories prices and greenhouse gasoline emissions.

Whilst we now have now not but established a definitive timeline for attaining complete renewable calories self-sufficiency, our fast precedence is to translate this ambition right into a structured transition plan with measurable milestones, balancing emissions discounts and long-term price financial savings with the reliability required to maintain our operations. Explicit goals and timelines shall be communicated because the checks development and the implementation roadmap is validated.

PT: Credit score checks have highlighted {that a} important quantity of operating capital is tied up in stock and advance deposits to aggregators. What steps are you taking to, unlock coins go with the flow and scale back liquidity pressures right through the low season?

Mr Alamu: Our working-capital necessities replicate the seasonal nature of agricultural procurement. All through key crop home windows, we strategically safe uncooked fabrics to give a boost to manufacturing and buyer call for, with that stock due to this fact processed, bought, and transformed into coins. Managing this cycle successfully is due to this fact a elementary a part of our running fashion. Our center of attention is on keeping up robust self-discipline throughout all of the cash-conversion cycle, from procurement and stock leadership to manufacturing, gross sales and collections. This comprises strengthening call for and procurement forecasting, bettering stock turnover, aligning purchases with manufacturing and gross sales necessities, and keeping up shut oversight of receivables.

Given the seasonality of the industry, we additionally search financing buildings which might be accurately aligned with agricultural procurement cycles and the timing of purchaser and export receipts. Our cash-conversion cycle can prolong to roughly 150 days right through seasonal peaks, whilst buyer collections in most cases happen inside of 25 to 40 days. This displays the timing between procurement, processing, cargo,ment and assortment fairly than a uniform investment requirement all over the yr.

Our precedence stays to regulate this cycle prudently, take care of suitable liquidity, meet our responsibilities as they fall due, and make sure that our operations are adequately funded to seize alternatives right through essential procurement classes. Any particular financing or capital-management projects shall be communicated based on our authorized monetary disclosures.

PT: Lack of confidence and farmer displacement are primary realities for your sourcing areas. How is Johnvents bodily protective its delivery chain and making sure a gradual go with the flow of uncooked fabrics if essential farming hubs face surprising lockdowns or disruptions?

Mr Alamu: Provide-chain resilience starts with figuring out the place our uncooked fabrics come from, keeping up robust relationships with providers and farmer teams, and heading off needless dependence on a unmarried supply or path. Our cocoa sourcing community spans a number of Nigerian states. This multi-origin way provides us choices to evaluate adjustments in native prerequisites, matter to crop availability, high quality necessities, and business concerns. We additionally paintings via farmer associations, cooperatives and native purchasing brokers, supported by way of sourcing and traceability processes. Those relationships lend a hand us take care of visibility into delivery prerequisites and reply when volumes, logistics or get entry to are disrupted. On the operational point, safety and emergency making plans will have to be proportionate to the chance and coordinated with related government and native stakeholders.

We can not do away with the broader safety dangers affecting agricultural communities, and we’d now not declare that any sourcing fashion is resistant to disruption. Our precedence is to spot rising dangers early, assess choice sourcing and logistics choices the place suitable, and offer protection to the protection of farmers, staff, providers and delivery companions whilst keeping up accountable procurement.

PT: Whilst your export-heavy fashion brings in foreign currencies, it additionally exposes you to intense world commodity-price shocks. What hedging methods do you’ve gotten in position to give protection to Johnvents if world cocoa or cashew costs fall abruptly?

Mr Alamu: Commodity-price volatility is a subject matter possibility for any processor or participant running in global agricultural markets. Our way due to this fact combines disciplined procurement, shut marketplace tracking, cautious leadership of stock and gross sales commitments, and a transparent figuring out of the cost publicity at each and every level of the buying and selling and processing cycle.

The place export gross sales and enter purchases are denominated in foreign currencies, matching exposures and timing can lend a hand set up some dangers. Nonetheless, it does now not do away with the affect of sharp actions in world commodity costs. The best equipment rely at the commodity, contract phrases, marketplace liquidity, and the crowd’s authorized possibility urge for food. We assess exposures and business commitments to hedge possibility, offer protection to margins, and maintain our skill to satisfy buyer and provider responsibilities. Our broader precedence is to regulate publicity prudently, steer clear of taking dangers that don’t seem to be supported by way of our running capability, and construct a resilient industry throughout marketplace cycles.

PT: Johnvents has set a goal for 100 according to cent traceability and licensed sustainable sourcing by way of 2027. Given your reliance on fragmented impartial aggregators, what’s the greatest bottleneck retaining you again from hitting this cut-off date?

Mr Alamu: Johnvents has accomplished 100 according to cent traceability and EUDR compliance around the related sourcing scope, representing a vital milestone in strengthening delivery chain transparency and accountable sourcing. Our development displays persevered funding in farm mapping and geolocation, provider information leadership, farmer engagement, and tracking techniques. We now center of attention on maintaining this success as our sourcing community and volumes increase, whilst proceeding to make stronger provider oversight and licensed sustainable sourcing throughout our delivery chains. Running with impartial aggregators calls for constant information leadership, verification, and adherence to accountable sourcing necessities throughout more than one actors and places. Our printed sustainability data additionally highlights development on this house, together with 122,916 hectares of farmland reported as verified deforestation-free and EUDR-ready in 2025.

Our precedence is to take care of the integrity of our traceability techniques, make stronger ongoing verification and advance licensed sustainable sourcing consistent with our 2027 dedication. This may increasingly lend a hand make sure that our sourcing practices stay clear, dependable, and aligned with appropriate regulatory and sustainability necessities.

PT: Gas subsidy elimination and meals inflation have greater transportation prices for smallholder farmers. How is Johnvents making sure those farmers don’t abandon your community for native consumers who might pay coins prematurely with out requiring strict compliance?

Mr Alamu: Farmer loyalty can’t be secured by way of asking farmers to take in emerging prices with out give a boost to. It will depend on whether or not the connection gives a unswerving marketplace, clear necessities and price through the years. Our long-term cocoa programme goals to give a boost to 150,000 farmers by way of 2030, and our present printed disclosures record greater than 40,000 farmer companions throughout our sourcing community.

We’re strengthening farmer relationships via coaching, get entry to to seedlings, cooperative and aggregation buildings, traceability give a boost to and hyperlinks to markets. Coaching and transparent communique about high quality necessities too can scale back avoidable rejection, delays and prices.

READ ALSO: The missing link in Nigeria’s cocoa value chain, By Ibim Banigo and Raphaël de Perlinghi

Cost phrases and delivery preparations are vital to farmers’ selections, so that they will have to be commercially workable and communicated obviously. We will have to now not promise common farm-gate assortment, delivery subsidies or fast coins fee except the ones preparations are to be had for the commodity and site. Our purpose is to construct relationships by which accountable sourcing necessities are matched by way of dependable engagement, clear processes and a reputable path to marketplace.

PT: Massive-scale cocoa processing faces increasing scrutiny over deforestation and monocrop farming. Past offering macro-loans, how are you actively implementing agroforestry practices amongst impartial smallholders who lack the capital to shift to climate-smart farming?

Mr Alamu: Our way is to make sustainable farming sensible for smallholders, now not merely to set necessities and be expecting farmers to satisfy them with out give a boost to. Thru our cocoa sustainability programme, we paintings with farmers on just right agricultural practices, climate-smart strategies, farm mapping and traceability. We’ve allotted greater than 400,000 cocoa and color bushes since 2022, supporting efforts to give a boost to farm resilience and inspire tree quilt inside of cocoa landscapes.

We’ve educated greater than 8,000 in climate-smart agriculture throughout Ondo State, and 122,916 hectares were verified as deforestation-free and EUDR-ready. We use farm-level data and traceability techniques to give a boost to visibility of sourcing spaces and lend a hand determine deforestation dangers. Those actions supplement engagement with farmer teams and supply-chain companions on accountable sourcing.

Enforcement will have to be paired with sensible give a boost to. Farmers want steering on tree leadership, soil well being, farm productiveness and compliance, in addition to get entry to to seedlings and cooperative buildings that may lend a hand them proportion wisdom and sources. We additionally wish to observe implementation and deal with non-compliance via our provider and sustainability processes. We recognise that the transition takes time, specifically for farmers with restricted capital, so our intention is to mix transparent requirements, tracking and farmer give a boost to fairly than depend on financing on my own.

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