AN EMPIRICAL INVESTIGATION OF THE DETERMINANTS OF COCOA PRODUCTION IN THE SOUTH WEST REGION OF CAMEROON

Project Abstract

<p>                <b>ABSTRACT&nbsp;</b><br></p><p>Cocoa production continues to remain the lifeblood of rural households in all cocoa growing communities in the South West Region of Cameroon with over 90% of the population in these communities involved in its production. However the determinants of cocoa production have over the years remain an issue of much controversy. This paper therefore investigates the determinants of cocoa production in the South West Region of Cameroon. A total of 430 questionnaires were distributed to cocoa farming households with the use of the multi-stage sampling technique in all the six Divisions that make up the South West Region.&nbsp;</p><p>Using the Principal Component Analysis (PCA) and the path regression the study revealed that access to credit and perceived climate variability has a negative significant effect on cocoa production whereas the use of fertilizers and chemical spray of the farm has a positive significant effect on cocoa production. The effects of marital status, farmers’ involvement in non-governmental organizations and government assistance were insignificant. The study thus recommend; the creation of village banks that would provide loans to farmers in the form of inputs rather than money; the introduction of improved cocoa species which are more productive and adaptive to the current and highly unpredictable climate scenario and increased government assistance among others. Keywords South West Region, Determinants, Cocoa Production, Agriculture <br></p>

Project Overview

<p> <b>1.1 INTRODUCTION&nbsp;</b></p><p>In the 21st century, agriculture continues to be a potential source of development and poverty reduction for most developing countries particularly Cameroon, World Development Report (WDR, 2008). The South West Region remains one of Cameroon‟s bread baskets in terms of agricultural production (Chambon and Mokoko, 2013). Over 70% of the inhabitants in the Region are living in rural areas and are involved in agricultural activities, with over 38% of the total surface area under cultivation (MINADER, 2013). This agricultural strength comes principally from the export crop sector, which is based on cocoa, coffee, timber, banana, rubber and palm oil, with cocoa as the leading subsector. Approximately 14 million rural workers directly depend on cocoa for their income, and this crop provides a livelihood for between 40 – 50 million farmers, rural workers and family members worldwide (WCF, 2012; Cocoa Barometer, 2014; Gayi and Tsowou 2015).Globally, an estimated average of 3 million metric tons of cocoa are produced every year (UNCTAD, 2004). Africa, particularly West Africa is the largest producer of cocoa, accounting for over 70 per cent of global production. Côte d‟Ivoire and Ghana alone contribute over 60% of the global cocoa supply, while Nigeria and Cameroon accounts for 12% (ICCO, 2013; Gayi and Tsowou 2015).</p><p>Cameroon is Central Africa‟s leading producer of cocoa, Africa‟s fourth largest producer as well as the 5th world largest producer. There are two main production basins in Cameroon; the South West basin and the Centre-South Basin (Klarer, 2014). Over the past 20 years the national production has been on an increase as well as the surface area planted of cocoa (FAO, 2014). Cocoa production rose from about 125,000 tons in 2000 to approximately 256,000 tons in 2012 and 275,000 tons in 2017(Drum Commodities, 2012; FAO, 2014; MINADER, 2018). This implies that output growth between 2000 and 2017 was approximately 150,000 tons. This increase as compared to that in Côte d‟Ivoire which moved from 1.2 million tons in 2000 to about 1.8 million tons in 2017 (that is a 600,000 tons increase) is too insignificant. Thus, the growth of cocoa production in Côte d‟Ivoire between 2000 and 2017 was 4 times that in Cameroon (WCE, 2014). <br></p><p>  Cameroon earns about 250 billion CFA francs (308.6 million pounds) a year from cocoa. This accounts for about half of the country‟s primary-sector exports, National Cocoa and Coffee Board, (NCCB, 2013).Cocoa remains one of the main cash crops in Cameroon with about 460.000 hectares of land used for growing it and over 600,000 people involved in its production. There are approximately 250,000 cocoa farms with about 60 percent of the population in Cameroon depending directly or indirectly on cocoa for their livelihood (FAO, 2005; Klarer, 2014).From 2003 to 2007, the cocoa sector‟s contribution to Cameroon‟s GNP moved from 0.89% to 1.45%. This accounted for between 5 to 9.652% of annual total export revenues. In 2009, cocoa accounted for 15% of the country‟s total annual export and 2.2% of the country‟s GNP (Armathé et al., 2013). As of 2011, national income from cocoa exports was the highest of all agricultural products (FAO, 2014).Cameroonian cocoa is the most sought after brands of cocoa in the world. This is a big boost to cocoa production in Cameroon (Uba, 1998; Iyabano, 2012).&nbsp;<br></p><p>  Despite these contributions to the economy and the dependence of Cameroonians on cocoa, the sector is facing lots of difficulties that are affecting its long-term viability (Tchokote et al., 2015). Increasing the quantity and quality of cocoa produced is one of the major focus of the government of Cameroon as they affect the export price as well as income realize from cocoa sales. This has led some to comment on the sluggish increase in the quantity of cocoa produced in Cameroon (FAO, 2012). This is a major issue of concern in the South West Region, one of the main cocoa producing basins of the country. <br></p><p>  The South West Region is the highest cocoa producing Region in Cameroon, producing over 58% of the country‟s total production (MINADER, 2012; FAO, 2014). This puts the South West Region at the forefront as far Cameroon‟s cocoa production is concerned. Over 90% of households in the cocoa producing areas of the south west region depend on cocoa for their income. It is with this income that members of these households are expected to get shelters for themselves, feed, cloth, educate and provide health care for their families (Klarer, 2014). Incomes realized depend to a very large extent on the quantity of cocoa produced. This quantity of cocoa is governed by both natural and human factors, United Nations Environmental Program (UNEP, 2013). However, the empirical findings has continued to generate controversies among scholars, with no profound empirical answer with reference to the appropriate factors that are likely to influence cocoa output in Africa, Cameroon and the South West Region in particular (Fadipe et al., 2012; Forgha and Tosam, 2013 and Effah et al, 2017). Production in the South West Region moved from 145,039 tons in 2010 to about 188,329 tons in 2015, implying that cocoa production has risen in South West Region (SWR) in the past years, with output, averaging about 425 kg per hectare (Drum Commodities, 2012. The increase in output does not mean the area is spared from the adverse effects of climate and other socioeconomic factors on cocoa production. According to Klarer (2014) the increase in output is merely due to increase in more land that has been brought under cultivation and not as a result of increase in output per hectare. <br></p><p> This Region is the most fertile and has the highest output per hectare in Cameroon. However, the output per hectare of 425 kg/ha in the South West Region remains greatly below expectation as compare to output per hectare in other cocoa producing countries such as Cote d‟Ivoire (600kg/ha), Indonesia (1000kg/ha) and Malaysia (1800kg/ha) (Abekoe et al. 2002; Cobbina, 2014 and Fule, 2013). This poor output per hectare could be attributed to the effect of some natural and human factors. Due to this low output, cocoa farmers do not earn sufficient income to meet their needs and maintain a moderate standard of living. The result of this are negative consequences such as, rural exodus of the youths and working age population who are leaving cocoa farming to pursue better opportunities in cities or abroad. Most of the cocoa farming communities are therefore left with a greater percentage of the population made up of old and children with very low productive capacities. This contributes to poor health conditions, prevalence of diseases especially HIV/AIDS, malaria and hunger, increasing child labor, little or no child education and increased poverty, among the households of the cocoa farmers. This therefore endangers the cocoa sector that plays a vital role in economic growth of Cameroon and on which thousands of rural families depend for their livelihoods in the South West Region. <br></p><p> Hence, it is imperative to identify the factors that significantly affect cocoa production in the South west region so that the farmers and other stakeholders can engage in influencing or adapting with these factors so as to improve output and as well as their welfare. This therefore calls for an investigation into the determinants of cocoa production in the South West Region of Cameroon so as to ascertain the factors affecting cocoa production and thus seek ways and means through which output can be improved. Specifically this work seeks to; identify the socio economic characteristics of cocoa farmers in the South West Region; examine the natural and physical factors affecting cocoa production and suggest plausible recommendations through which output can be improved. <br></p>