How Nigerian Cocoa Beans Are Priced: Futures, Differentials and FOB Lagos Explained

"What is your price per ton?" is the first question in almost every enquiry we receive. The honest answer is that cocoa is not priced like a manufactured product with a list price. It is a globally traded commodity, and the number on your invoice is assembled from several moving parts. Understanding them is the only way to compare offers from different Nigerian suppliers like for like.

1. The futures reference

Cocoa is traded on two terminal markets: ICE Futures Europe in London (priced in GBP per tonne) and ICE Futures US in New York (USD per tonne). Physical cocoa contracts normally reference one of these — for example "London March contract" — and the price moves with the market every day until it is fixed. This is why a serious exporter will not publish a flat price per ton on a website: it would be wrong within hours.

2. The origin differential

On top of (or below) the futures price sits a differential that reflects the origin, grade, crop and market conditions. Nigerian cocoa typically trades at a differential to London that moves with supply, demand and quality perception. Grade I main-crop beans command a better differential than Grade II or light crop. When a supplier quotes "London plus/minus X", the X is the differential.

3. Fixed price versus price-to-be-fixed

Buyers may contract at a fixed price (the futures level and differential are locked in at signing) or on a price-to-be-fixed (PTBF) basis, where the differential is agreed now and the futures component is fixed later at the buyer's or seller's call. PTBF is common for larger programmes and lets buyers manage their own market exposure. Smaller first-time buyers usually prefer a simple fixed price.

4. Incoterm

• FOB Lagos — includes haulage to Apapa or Tin Can Island, export clearance, FPIS grading, terminal handling and loading on board. You arrange freight and insurance.
• CFR / CIF destination — FOB plus ocean freight (and insurance for CIF) to Amsterdam, Antwerp, Hamburg, Port Klang, Istanbul or your named port.
• FCA / EXW — price at our warehouse or the Lagos terminal; your forwarder takes over earlier.

5. Packing and tonnage per container

Cocoa is conventionally shipped in new jute bags of 62.5 kg or 64 kg net, around 200–250 bags per 20' container. Loose loading in a flexi-liner raises the payload to 18–20 tonnes per 20' and lowers the cost per tonne of freight and handling — but your receiving facility must be able to discharge bulk beans. Make sure both quotations assume the same packing.

6. What should be included in a complete offer

Why we do not publish a list price

Publishing a single price per ton would either mislead you or go stale within a day. Instead we provide a written, itemised offer within two business days: grade, crop, bean count, moisture, packing, tonnage, Incoterm, price basis, documents and payment terms. That is a price you can actually compare. Request your quotation here, or read our guide to cocoa grades and export documentation first.