(Business in Cameroon) - Contrary to previous years, cocoa farm gate prices in Cameroon have not been the most attractive. "The 2016/2017 season started, as with prior cocoa years, with lots of hope. In certain areas, the farm gate price posted FCfa 1400 in September and October 2016. The bad news of the market being confirmed during the months that followed, the price decrease was continuous, reaching an average level of FCfa 900 the Kg by the end of the season", the cocoa and coffee board (Conseil Interprofessionnel du Cacao et du Café - CICC) indicated.

According to the cocoa and coffee board, "this situation is attributable to over-production in the sector, and results from policies to increase production in all the producing countries, in view of a constant increase in price during the last 5 seasons. With stocks at the highest level and production that increased faster than grinding, the collapse in prices was inevitable". 

Indeed, according to ICCO statistics, the key organization of the cocoa world, the last cocoa season in the world was characterised by excess production of about 380,000 tons. Coupled with the decline in demand from bean grinders, this situation led to a drop in world prices, with a notable impact in farm gate prices in producer countries.

In Cameroon, in order to maintain the purchasing power of producers, used to selling the Kg of cocoa at between FCfa 1000 and 1600 for the past five seasons, the government decided, for the new season, officially launched on 25 August 2017, to reduce the export charge by 50%. This measure, we learned, aims at offering a bigger margin to exporters, who in turn, should pay a fair price to the producers.

Brice R. Mbodiam