Abstract
Under the right conditions, Cameroon could be a notable agricultural producer,
as well as food selfsufficient.
The country has varied terrain, a mix of
climatic conditions and good quality soil. Yet, despite
its potential as a
breadbasket of West Africa, historically, a series of limiting factors have
harmed the
domestic farming outlook. Corruption, a lack of government
prioritisation, unregulated trade and
inadequate infrastructure can all
take some blame for the slow pace of agricultural development in the
region. Having said that, as a number of globally important - and locally
produced - cash crops have
attracted the attention of private investors to
the area, this has had a much needed effect in boosting
industry
fundamentals, as well as augmenting the state' s recently strengthened resolve
in furthering the
positive outlook for export commodities such as coffee,
cocoa and sugar. BMI' s latest Cameroon
Agribusiness Report regards these
developments against the country' s need to improve domestic capacity
in
basic household staples.
Coffee is among the country' s most lucrative cash
crops. Having decided to harness the export potential
of local beans, due
to its perceived high quality among robusta varieties, the government has
implemented
various measures intended to support the industry. Tax
exemption on input import duties has enabled
easier access to the relevant
seeds and fertilisers needed to improve fundamentals. In addition, the
state
budget is being utilised to facilitate financing schemes whereby
farmers can reclaim unused plantations in
order to boost output and
improve economies of scale. Such incentives are forecast to be
complimented
by the emergence of a growing band of small-scale farms
merging together to form co-operatives and
improving access to credit,
which has often been a major stumbling block to growth. We see coffee
production benefitting immensely from such measures, expanding by just over
12% throughout the
outlook.
There have been strong efforts of late by
both the local government and private investors to focus on
stronger
domestic supply chain links for African cocoa production. A record harvest of
187,000 tonnes
was posted in 2008, while the fundamentals for the current
crop seem equally positive, as supply
problems in neighbouring producers
has been supportive to prices. We predict output to expand by almost
85%
between 2009 and 2013, which is by far the largest production growth predicted
in the current
outlook. West Africa is the hub of global cocoa production
and, while the lion' s share of interest from
multinational companies and
private investors is likely to be directed towards the Ivory Coast and
Ghana
(the world' s top two producers), Cameroon can expect to attract a
fair portion of attention among those
seeking to more closely integrate
supply/value chain processes.
Meanwhile, cocoa sustainability programmes,
initiated by the likes of Cadbury' s, are making the
prospect of cocoa
farming increasingly attractive to locals. Similarly, the production of sugar
is forecast
to benefit from the privatisation of state-run enterprises,
enabling a greater degree of profit-making
potential for plucky
entrepreneurs.
Despite the positive outlook for the country' s main
agricultural cash crops, there remains a degree of
concern that imports
will comprise a larger share of the domestic consumption outlook through to
2013.
As a larger percentage of the population becomes less poor, the
demand for rice, corn and meat will rise,
yet very little attention seems
to have been directed towards improving production in these categories,
which is worrying in a time of volatile global food supplies. Going forward,
it is imperative to address
such issues.
Finally, as the country
attempts to rid itself of a generally undesirable reputation for graft and
corruption,
we believe such efforts will do much to improve the business
environment ratings of the country, thus
laying the foundation for a
greater degree of investment growth.
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