(Business in Cameroon) - Since the second half of the month of July 2017, the farm gate price of cocoa has weakened again, falling below FCfa 900. According to the reference price communicated as part of the sector information system (Système d’Information des Filières - SIF), this price has peaked at FCfa 875 since then, and remained there since the launch of the new season last 25 August in the Ntui area, Centre Region.
However, during the launch of the preceding campaign, between August and September 2016, the kilogramme of cocoa was trading for an average price of FCfa 1,400, according to statistics compiled by the Cocoa and Coffee Board; revealing a difference of FCfa 525.
This declining trend of cocoa prices, which has been running for several months now, is the consequence of an overproduction estimated at about 380,000 tons by ICCO, the umbrella body of world cocoa. To this overproduction, the same source points out, should be added, the decline in demand from processors.
In Cameroon, in order not to discourage producers used to selling their cocoa at between FCfa 1,000 and 1,500 per kilogramme for the last five years, the government decided, this year, to reduce the export charge by 50%, so that exporters with more means could better remunerate the producers.