Cameroon Agribusiness Report Q1 2013Published by: Business Monitor International Published: Dec. 12, 2012 - 71 Pages Table of Contents
AbstractOverall, we expect Cameroon’s agricultural performance in 2012/13 to represent an improvement on theprevious year. The main corn harvest has already been taken in, and early indications suggest that someof the ground lost in the past two years has been regained despite weather that was unfavourable attimes. The two main cash crops, coffee and cocoa, also are likely to see modest increases in production.That said, in the case of cocoa, weather has intervened, in the form of persistent heavy autumnal rains,leading to an outbreak of black pod disease.Key Forecasts Corn production growth to 2016/17: 62.6% 1.8mn tonnes. After two years of setbacks, weexpect investment to facilitate rapid output growth that will allow Cameroon to surpass evenbuoyant demand growth. Cocoa production growth to 2016/17: 33.2% to 273,100 tonnes. Government and privatesector investment will improve yields and quality, leading to increased exports. Sugar consumption growth to 2017: 23.2% to 306,800 tonnes. Significant increases in GDPper capita, rapid population growth and a fast expanding food and drink sector will support solidgrowth. 2013 real GDP growth: 5.2% (up from 4.7% in 2012). 2013 consumer price inflation: 2.5% (up from 2.0% in 2012). Industry Outlook Strong economic growth is forecast for Cameroon over the next few years, with year-on-year GDPincreases of around 5% expected to 2016, when growth will moderate. For the agricultural sector, this islikely to bring increased consumer demand, particularly for sugar as rising incomes provide a boost to thecarbonated drinks segment, and for corn on the back of demand for feed from the livestock sector. Directinvestment into the key export commodities of coffee and cocoa, as well as into the reviving sugarindustry, are expected to become more readily available, although the notably poor business environmentremains a concern. Government investment in infrastructure, which is expected to increase sharply, willplay a key role in facilitating growth in agribusiness as domestic markets become more integrated andexports to neighbouring countries increase. Currently, it is often more cost effective for the main coastalpopulation centres to import sugar from Brazil than to transport it from the inland sugar cane growingregions. Domestic demand for coffee and cocoa remains negligible and is unlikely to be boosted even by growingincomes, as this growth comes from a very low base. However, as part of a joint proposal with the CentralAfrican Republic, Cameroon is seeking financial support to boost domestic coffee consumption alongsideother more pressing ambitions related to production. The two countries are seeking to bring insupervisory support from the International Coffee Organisation (which Cameroon has recently joined) aswell as substantial financial support from the Common Fund for Commodities of around US$7mn. Theproject aims to increase productivity, quality and sustainability in the sector, seeking also to encourageand train more young growers, and to distribute improved seedlings. Get full details about this report >> |
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