Infos Business of Monday, 5 October 2015

Source: Cameroon Tribune

Cocoa production to drop by 20,000 tonnes - BEAC

Cocoa production Cocoa production

Prospects for cocoa production in Cameroon in the 2015 season are not bright. The Bank for Central African States in its fourth quarter forecast of the evolution of economic activities in Cameroon holds that the sector is poised to witness a slowdown with production to reduce from 230,000 to 210,000 tonnes.

The document of the national branch of BEAC, published on September 28, 2015, also gives summary data of government departments and companies that are regularly interviewed. The document prospects mitigated results for the primary sector.

After about 230,000 tonnes in the 2014/2015 season, cocoa production in the 2015/2016 season is poised to witness a downturn in connection with the phenomenon of vegetal dormancy.

According to estimates of the National Cocoa and Coffee Board, ONCC, production can only reach 210,000 tonnes, a drop of 20,000 metric tonnes. The September 30, 2014 recovery plan and the transparent management of projects and programmes are expected to turn over tides.

However, auditing the previous projects and programmes that received billions of FCFA as funding with little spinoffs after scaling up production is recommended.

ONCC however reported that the last cocoa season in Cameroon produced 206,550 tonnes- a 9 per cent decline relatively to the 2012/2013 season. On the contrary, exports hit 6,666 tonnes in August 2014- the first month of the 2014/2015 season. The board however indicated that exports rose to 500 tonnes compared to the same period the previous season.

Coffee

The 2015/2016 Arabica coffee season is expected to begin this month while that for Robusta starts in December, with production expected to hit 5,000 and 20,000 tonnes respectively. Arabica is poised to witness a 60 per cent increase with Robusta at 15 per cent. Notwithstanding, prospects hold that the evolution is still short of expectation, given the volume of financial assistance the sector receives from government.

Cotton

The fall of the prices of cotton fiber in the international market, coupled with internal problems, are part of the shocks the cotton sector is expected to face. The very high cost of some agricultural inputs (fertilisers, pesticides and insecticides), added to the delay of rains in some areas, may negatively impact production, notes the BEAC document.

Fishery, Animal Husbandry

Activities of the sector are expected to witness a slight decrease by the end of the rainy season and beginning dry of season (November) caused by pasture degradation and drying up of water sources in the northern part of the country.

Insecurity in that part of the country, with the kidnapping of persons and herdsmen, will affect breeding. In the Centre Region on the contrary, the Delegation of Livestock, Fisheries and Animal Industry, indicates that the activity will remain vibrant in 2015 due to high demand for end-of-year festivities that are expected to stimulate the sector with the coming in of seasonal operators.

Palm Oil

The perenial issue of authorising the import of refined vegetable oil reported to sell at lower prices in local markets has darkened crude palm oil production. Producers are alleged to lose market shares and significant stocks. Slashing workforce as part of protective measures are holding back the industry from emerging, the document reports.

Rubber, wood, tea, food crops and banana sectors have also been assessed by the document. It reports that rubber production will drop due to low demand in the world market. Logging will reduce because of the informal sector, administrative bottlenecks, low demand from Asian countries and congestion at the Douala Seaport. Indicators show that food crops will witness an increase in demand with the coming of end-of-year feasts.

Delays observed in the non-payment of Value Added Tax credits will not only affect business persons exporting banana but will equally play down on the debt repayment schedule. However, the opening up of more plantations is expected to boost production.

Chad and the Central Africa Republic are good consumers of Cameroonian tea. Insecurity in the Far North and East Regions are not good signals for the sector, given that Cameroonians in their majority consume imported tea.