Sixty four samples of cocoa beans replicated in quadruplicates were collected from five warehouses from southwest Nigeria and examined for fungal loads, ergosterol and eohratoxin A The levels of all the variables obtained were further used as indices for cocoa grading into food quality, FoQ (erg < 5 mg/kg; OTA < $1{mu}g$/kg), feed quality, FeQ (erg = $5{sim}10;mg$/kg; OTA in the range of $1.1{sim}3.11{mu}g$/kg), Screen for mycotoxin, SFM (erg = $10{sim}20;mg$/kg; OTA from $3.12{mu}g$/kg and above) with fuel quality, FuQ having erg > 20 mg/kg and OTA > $6.12{mu}g$/kg. Using these ergosterol indices, 18.75% of the cocoa beans examined was classified with the FoQ, 18.75% with the FuQ while 31.25% was classified with both the FeQ and the SFM, respectively. In conclusion, ergosterol can be used as a rapid index to grade fermented, dried cocoa beans meant for export.