2012-10-28 15:55:13 - Recently published research from Business Monitor International, "Cameroon Agribusiness Report Q4 2012", is now available at Fast Market Research

BMI View: The figures starting to come in for 2011/12 harvests across the agricultural sectors covered in this report suggest a somewhat disappointing performance. Cocoa farmers in particular have had a difficult year due to the impact of unfavourable weather conditions and an associated increase in outbreaks of pests and disease. Sugar output has stagnated, and corn has registered a slight downturn as production struggles to recover from a severe year-on-year decline in 2010/11. Coffee stands out as the one commodity to have registered growth - impressive growth at that - as better access to herbicides and an 'on-year' for the country's robusta plants resulted in big gains. That said, this has yet to translate into increased exports, as farmers

have hoarded stocks in response to lower prices. The medium- and longerterm picture is much more encouraging, as increased investment and strong GDP growth will see increased production across the board.


Full Report Details at
- www.fastmr.com/prod/479399_cameroon_agribusiness_report_q4_2012. ..


Key Forecasts

* Corn consumption growth to 2016: 16.5% to 1.5mn tonnes. Demand for corn will recover as prices moderate in the medium term and solid economic growth drives demand for corn-fed livestock.
* Coffee production growth to 2015/16: 74.0% to 1.1mn 60kg bags. Production is expected to recover from 2011's slump, and the sector will benefit from investment in pesticides, fertilizers and infrastructure.
* Cocoa production growth to 2015/16: 7.2% to 257,300 tonnes. Government and private sector investment will improve yields and quality leading to increased exports.
* Sugar consumption growth to 2015/16: 42.4% to 299,000 tonnes. Significant increases in GDP per capita, rapid population growth and a fast expanding food and drink sector will support strong growth.
* 2012 real GDP growth: 4.7% (up from 4.2% in 2011 and averaging 4.8% between 2011 and 2015).
* 2012 consumer price inflation: 2.7% (down from 2.9% in 2011).

Industry Outlook

Although 2012 may not have been a standout year for agribusiness in Cameroon as far as production is concerned, several important investment projects suggest that the outlook is positive. The African Cocoa Initiative, a major collaboration between the World Cocoa Foundation, the US Agency for International Development, the government of the Netherlands and leading international cocoa buyers, was launched in Cameroon in July. The initiative aims to increase productivity and sustainability in the sector by fostering public-private cooperative investments in cocoa and agriculture, improving the genetic quality and productivity of the cocoa varieties under cultivation, expanding farmer education and training programmes, and improving the agriculture input supply chains that serve farmers. The budget for the project stands at US$13.8mn (CFA7.3mn) with plans to leverage at least US$25mn from the private sector over the duration of the initiative.

Further private sector support for the cocoa sector comes in the form of Swiss chocolate manufacturer Barry Callebaut's 'Cocoa Horizons' scheme in cooperation with NGO Rainforest Alliance. The programme aims to boost farm productivity, increase quality and improve family livelihoods. The company has begun training members of five farmer cooperatives in central Cameroon to enable them to become independently certified by the Rainforest Alliance. Approximately 1,000 farmers will receive training in the next 12 months. Barry Callebaut staff in Cameroon will deliver training in good agricultural practices and provide support in setting up internal control systems and improving administrative procedures at the cooperatives with support of the Rainforest Alliance.

Cameroon's sugar sector received a potentially transformative intervention as Justin Sugar Mills, a jointly owned Indian and Cameroonian enterprise, announced the start of work on a sugar cane plantation and processing complex. The firm hopes to produce 60,000 tonnes of refined sugar a year by 2014 with the aim to produce much more than that in the future. This would provide much-needed competition for formerly state-run Sosucam, which has struggled to increase output in response to soaring demand.

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