(Business in Cameroon) - Société de développement du coton (Sodecoton) is expected to produce 235,000 tonnes of cotton in the 2014-2015 season. This is up 7% relative to the previous season when the agro-industrial flagship in northern Cameroon failed to achieve the 240,000 tonnes predicted at the start of that season. This was revealed by Commodafrica.
Although it is only a small one, this increase in Cameroonian cotton production has come about in a difficult international context characterised by a decline in global cotton prices (a 30% downturn since 2013) and a drastic reduction in imports by China – a country that makes-up 60% of the world cotton market and currently has 11 million tonnes of cotton in its reserves.
According to analysts, the combination of these two factors should result in low cotton prices or poor sales. This would generate significant losses for cotton companies like Sodecton.