At launch of 2024/2025 cocoa season: Trade minister vows to tackle income inequality in sector.

He made the declaration at a ceremony to officially launch the 2024/2025 cocoa season in Mvengue, in Ocean Division of the South Region. 

The event, which took place on August 8, saw the presence of the Executive Director of the International Cocoa Organisation, Michel Arrion. 

Other top government officials including the Minister of Agriculture and Rural Development, Gabriel Mbairobe, and Minister of Forestry and Wildlife, Jules Doret Ndongo, in his capacity as the President of the Ocean Development Association, lived the event. 

According to Minister Mbarga Atangana, the 2024/2025 campaign aims to build on the success of the previous season, during which cocoa prices for producers reached record highs, surpassing 6,000 FCFA per kilogramme.

However, the minister insisted that beyond the impressive financial results, the focus this year is on addressing the pressing issue of fair income distribution within the cocoa value chain.

The minister decried that despite the record earnings, cocoa farmers currently receive only seven to eight percent of the total value generated by their labour. The remaining majority is absorbed by various intermediaries, including transporters, distributors, and industrial processors.

In this light, he emphasised the need for systemic and sustained efforts to rectify this imbalance, advocating a more inclusive and transparent market that ensures stability and long-term viability. 

“Equity demands that this inequality be corrected, not in a temporary fashion, but systematically and over time, in the name of market stability and the sustainability of the system,” the minister asserted.

He also cautioned against any potential decline in cocoa prices below the current levels of 5,000 FCFA to 6,000 FCFA per kilogramme, warning that such a drop would be devastating for producers and could unravel the hard-won gains of recent years.

The minister called for a balanced approach, urging both the production and industrial sectors to collaborate under the guidance of the International Cocoa Organisation to ensure fair prices for all stakeholders. 

He was firm that aside economic concerns, the government remains committed to upholding the quality standards of “Cameroon-origin” cocoa, which is highly sought after in international markets.

This pursuit of excellence, the minister warned, “must not come at the expense of environmental and social sustainability”. 

He went on to reiterate the importance of fair compensation for cocoa farmers, stating that economic sustainability ensuring fair prices and appropriate remuneration for producers must be the legitimate counterpart to the sector’s environmental and social standards.

The minister reiterated government’s determination to lead the “fight for market transparency” and ensure a more equitable distribution of value within the cocoa industry, aiming to preserve the reputation of Cameroon's cocoa, while securing the livelihoods of its producers.

This story was first published in The Guardian Post issue N0:3198 of Tuesday August 13, 2024