Cocoa /Coffee sector:Revival plan ...the stimulus!

The cocoa and coffee sector is one in which many investors can easily make good use of its huge potential either through production or processing.

On September 30, 2014, the government of Cameroon endorsed a plan to revive the cocoa and coffee sectors that represent about 3 per cent of GDP and 15 per cent of the primary sector GDP.

The plan which kick-started in 2015 is expected by 2020 to scale up production to 600, 000 tons of cocoa, 125,000 tons of robusta coffee and 35, 000 tons of arabica coffee as against little over 232, 000 tons of cocoa, 120, 000 tons of robusta coffee and 100,000 tons of arabica given that the drastic drop in production by about 20,000 tons rabica and less than 3000 tons for arabica.

The project is therefore a huge investment potential worth exploring. The clarion call as Cameroon braces up for the International Economic Conference in Yaounde on May 17 and 18, 2016 on the theme: “Investing in Cameroon, Land of Attractive Opportunities,” is therefore for investors to seize existing opportunities. This, especially as the recovery plan is expected to generate profits worth over FCFA 430 Billion from sales and exports.

It comes at a time when the price of the commodity is on a steady increase in the international mark. As at April 25, 2016 the price of cocoa in London stood at FCFA 1,922/kg; FOB Douala at FCFA 1,818/Kg with buying price of Douala-based exporters Mini at FCFA 1,240/kg and Maxi at FCFA 1,390/kg.

Figures from the National Cocoa and Coffee Board indicate that production and marketing has been dwindling, though all hopes are not lost. The revival plan makes provision for increased profitability with the country expected to reap enormously in terms of currencies lined to export activities and processing of over FCFA 750 Billion during the five-year period.

Investors to the Yaounde Economic Forum are therefore expected to get quotas in the FCFA 600 Billion project. FCFA 150B is pumped into the revival plan by the State, FCFA 390 billion from business persons in the sector, FCFA 42 billion from external financing of cooperation with various partners and other investors expected to support the plan with FCFA 18 billion.

The plan focuses on increasing the funding of research, production and wide distribution of plants produced from improved seeds an, the full treatment of cocoa-coffee plants. Creating new large plantations is part of the government effort worth trying by business persons.

The cocoa and coffee stimulus plan is structured around the pillars of research, production, marketing, promotion and consumption, quality, processing, financing amongst others. Over 3.84 million direct and indirect jobs are expected to be created when the plan ends in 2020.