Int’l Cocoa Organisation lauds Cameroon for liberalising sector.

According to ICO, the immediate outcome of this move is that over the past decade, the domestic cocoa market has witnessed an influx of commercial actors who have contributed immensely to boosting competition. This, it said, has in turn driven prices paid to local farmers skyward.

ICO disclosed that since 2019, the government had allowed group sales of cocoa, based on reference prices set by the National Cocoa and Coffee Board, NCCB, which oversees quality and export monitoring. 

It expressed delight that this system enables farmers, through their cooperatives, to negotiate directly with multinational companies or local processors, adjusting purchase prices based on the quality and quantity of their production.

The organisation also praised the government of Cameroon for what the institution says is exemplary support given to farmers.

Cameroon proposed to head ICC

For this achievement, ICO has proposed Cameroon to lead the International Cocoa Council, ICC, for one year. This why Cameroon is standing for election during the 110th ICCO session closing in Abidjan today. 

The confirmation of Cameroon’s choice today, highlights the global recognition of Cameroon’s "tireless efforts to promote fair compensation for cocoa farmers," according to a statement issued by the Ministry of Trade last Friday.

The government statement reiterated that this session of the International Cocoa Council is crucial, as it aims to set new strategies to ensure the sustainability of the global cocoa economy. Cameroon, the world’s fourth-largest producer, shares a production level of 300,000 tons with Nigeria. 

According to ICO’s cocoa statistics report for the 2023-2024 season, the top four African producers Côte d'Ivoire, Ghana, Cameroon, and Nigeria account for 70.6% of global cocoa production, though this share has slightly decreased from previous seasons.

Cameroon's 2023-2024 cocoa season has been marked by record-high prices for farmers, reaching as much as 6,300 FCFA per kilogram. This price surge helped the country generate total revenues of 488.8 billion FCFA, (FOB) an increase of 220 billion FCFA compared to the previous year, according to the National Cocoa and Coffee Board.

Trade Minister, Luc Magloire Mbarga Atangana, noted that this "unprecedented price increase" strengthens Cameroon’s position as a "benchmark for quality and fair compensation for farmers, now among the best-paid in the world."

In a statement on September 18, the Minister of Trade announced that a "major global player in the chocolate industry" had signed a purchase contract with a local cooperative for 5,200 FCFA per kilogramme. 

While the buyer's identity was not revealed, Atangana said this agreement reflects renewed international confidence in the quality of Cameroonian cocoa. He urged farmers to adopt this partnership model to secure better earnings for their hard work.

As the 2024-2025 cocoa season officially launched on August 8, Atangana expressed optimism, stating that "all indicators point towards either maintaining or improving the gains, thanks to the recognised quality of Cameroonian cocoa, which is now attracting top players in the global chocolate industry". He also noted a mismatch between reduced supply and growing demand.

With Cameroon holding the presidency of the International Cocoa Council, the country will have an opportunity to champion its interests and promote sustainable practices, particularly with the European Union’s upcoming anti-deforestation regulation. 

This rule aims to ban products linked to deforestation, potentially affecting the cocoa sector. Cameroon’s leadership in the council highlights its significance as one of Africa’s and the world’s leading cocoa producers, according to the Ministry of Trade.

This article was first published in The Guardian Post issue N0:3241 of Thursday September 26, 2024