Cameroon Agribusiness Market Report Q1 2012

2011-12-28
Published : Dec-2011

BMI View: We have extended our supply and demand forecasts for Cameroon’s agribusiness industries to the end of 2016. Our new forecasts anticipate positive production growth for most of Cameroon’s key agricultural sectors. Coffee is predicted to show the strongest growth trajectory through to 2016, although production growth rates are also expected to be relatively robust for sugar, cocoa and corn.

Cameroon Agribusiness Market Report Q1 2012

Order Now, Contact: + 1 888 391 5441 or [email protected]

Stronger long-term production growth for cocoa would be predicted, were it not for the impact of poor weather conditions in the current crop year. On a general level, Cameroon’s cocoa and coffee industries are both benefiting from increased investment, improved industry fundamentals and better macroeconomic conditions. Our newly extended forecasts also envisage positive consumption growth for most of Cameroon’s agricultural commodities. The one exception to this trend is coffee, for which demand is expected to remain muted. Staple grains such as corn will experience steady demand growth as Cameroon’s population continues to expand. Demand growth will be supported by an economy that is predicted to expand at an average annual rate of 4.3% to 2016. Growing domestic demand for cocoa will be fuelled by rising disposable incomes and by the increased consumption of value-added processed products.

Key Industry Forecasts

Cocoa Production Growth to 2015/16: 13.6% to 269,000 tonnes. Output increased by 19.5% in the 2010/11 crop year (ending July 31), with favourable weather contributing to a successful harvest. However, unfavourable weather conditions at the start of the 2011/12 crop year reportedly hampered cocoa cultivation and point to the likelihood of reduced output in the current crop year. Over the long term, Cameroon’s cocoa industry is expected to benefit from better crop management techniques, as well as from increased private and public sector investment.

Coffee Production Growth to 2015/16: 29% to 970,500 60kg bags. We maintain our forecast for a 4.1% increase in production in 2011/12; this will see output rise to 780,500 60kg bags. A combination of domestic and foreign investment should help to build extra production capacity in the industry. Corn Production Growth to 2015/16: Corn: 26% to 2.27mn tonnes. Following a 12.5% increase in production in 2010/11, corn production will remain flat in 2011/12 at 1.8mn tonnes. However, over the longer term, positive production growth will be supported by improved macroeconomics and rising demand for the grain.

Corn Consumption Growth to 2016: 41% to 2.4mn tonnes. Most domestic demand for corn is currently met by domestic production. However, in the latter years of our forecast, we expect to see a growing reliance on imported corn.

Sugar Production Growth to 2015/16: 17% to 140,000 tonnes. We now envisage relatively flat production growth in the 2011/12 agricultural year (harvest ending December 2011). This follows an 11.0% fall in output the previous agricultural year. Although Cameroon’s national sugar company has struggled to raise output, we remain optimistic that various public-private production initiatives will help Cameroon’s sugar sector to slowly evolve into a high-growth industry.

Key Macroeconomic Forecasts

.. Cameroon Real GDP Growth 2012: 4.3%, up from 3.7% in 2011. We forecast GDP growth to average 4.3% between 2011 and 2016.

.. Cameroon Consumer Price Inflation 2012: 2.5%, down from 3.5% in 2011. Inflation is, by a large degree, controlled by the Central African franc’s peg to the euro; it is therefore expected to remain subdued for the foreseeable future.

.. Cameroon Unemployment Rate 2012: 7.6%, down from 7.8% in 2011.

Industry Developments

Cameroon’s agricultural sector stands to benefit from infrastructure improvements. New roads in particular would enable farmers to more effectively transport their produce to market, thereby reducing waste and ensuring that a greater proportion of their crops can be sold domestically or internationally. In September the government announced plans to spend CFA175bn (US$379mn) on constructing roads over the next 10 years. Cameroon will reportedly build 350km of roads each year over the next decade. The country’s roads, of which 5,000km or just 10%, are degrading as traffic volumes continue to increase by an average of 5% each year, according to the ministry. According to government statistics, only 6% of roads are said to be in a good state, while 21% are classified as normal, 70% are mediocre and 3% are considered to be in a very poor state. BMI believes the new road infrastructure would be especially beneficial to Cameroon’s cocoa and coffee industries. Although the new roads will be built around the country, they will encompass the cocoa-producing south, central and eastern regions.

Although investments in new infrastructure, fertilisers and plants will benefit Cameroon’s cocoa sector over the longer-term, short-term cocoa production will remain vulnerable to the vagaries of the weather. In a good season, favourable rains can contribute to a bumper harvest, as occurred in the 2010/11 agricultural year. However, poor weather conditions at the start of the growing season in August were reported to have hampered cultivation efforts. Meanwhile, bad weather also made it difficult for farmers to properly dry their crops from the previous season. As a result, there were said to be smaller quantities of cocoa beans making it onto the local market. Those beans that were making it to market were of poorer quality; this resulted in fewer buyers and falling prices.

Although a fall in cocoa production is predicted for 2011/12, output should still be higher than 2009/10. Furthermore, BMI maintains an upbeat long-term view of Cameroon’s cocoa sector, which we expect to benefit from better crop management techniques and support from both the government and multinational corporate backers. We believe that improved production techniques will give Cameroonian cocoa farmers an opportunity to sell more of their beans on international markets.

Apart from cocoa, key growth sectors which are attracting foreign investment include palm oil production. In August 2011, it was reported that Biopalm Energy, a subsidiary of Singapore’s Siva Group, planned to launch a CFA900bn (US$1.91bn) palm oil investment project in the south of Cameroon. The 200,000-hectare greenfield project will be jointly developed with Cameroon’s National Investment Corporation and should increase Cameroon’s yearly palm oil production by 80,000 tonnes within the first five years of production. Cameroon’s palm oil sector has been successful at attracting other major investors. These include the US agricultural company Herakles Farms, which reportedly plans to develop some 60,000 hectares of oil palm plantations in the country, and Malaysia’s Sime Darby, which is said to be considering a US$2.5bn plantation expansion deal.

Executive Summary
SWOT Analysis
Cameroon Agricultural SWOT
Cameroon Political SWOT
Cameroon Economic SWOT
Cameroon Business Environment SWOT
Supply Demand Analysis
Cameroon Cocoa Outlook
CAMEROON Cocoa Production & Consumption
CAMEROON Cocoa Production & Consumption
Cameroon Coffee Outlook
CAMEROON Coffee Production & Consumption
CAMEROON Coffee Production & Consumption
Cameroon Sugar Outlook
CAMEROON Sugar Production & Consumption
CAMEROON Sugar Production & Consumption
Cameroon Grains Outlook
CAMEROON Corn Production & Consumption
CAMEROON Corn Production & Consumption
Commodity Price Analysis
Monthly Grains Update
Corn
Rice
Soybean
Wheat
Monthly Softs Update
Cocoa
Coffee
Palm Oil
Sugar
Macroeconomic Forecast
CAMEROON – ECONOMIC ACTIVITY
Industry Trend Analysis
Looking Beyond Ghana And Nigeria For Opportunities In West Africa
BMI Launches Food Consumption And Retail Data For Three West Africa Economies
BMI Forecast Modelling
How We Generate Our Industry Forecasts
Filed in: Agribusiness
More Reports
Title Price Buy Now

Compound Feed Market by Ingredient (Cereals, Cakes & Meals, By-products, and Supplements), Form (Mash, Pellets, and Crumbles), Livestock (Ruminants, Poultry, Swine, and Aquaculture), Source (Plant-based & Animal-based) & Region – Global Forecast to 2027

“The compound feed market is projected to grow at a CAGR of 4.2% during the forecast period.” According to MarketsandMarkets, the global compound feed market is estimated to be valued at USD 521.3 billion in 2022. It is projected to reach USD 641.2 billion by 2027, with a CAGR of 4.2%, in terms of value between 2022 and 2027. The market is gaining momentum with increasing demand for providing more nutritious food to livestock to optimize livestock productivity. Additionally, the need for high-quality meat & dairy results in the need for compound feed. Key players have been investing significantly in R&D to cater to changing consumer preferences and reduce production costs. “By ingredients, the cereal segment occupies the highest market share during the forecast perio......
$4950

Feed Preservatives Market by Type (Feed Acidifiers, Mold Inhibitors, Feed Antioxidants, Anticaking Agents), Livestock (Poultry, Cattle, Swine, Aquaculture), Feed Type (Compound Feed, Feed Premix, Feed Meal, Silage), and Region – Global Forecast to 2027

“The feed preservatives market is projected to grow at a CAGR of 6.7% during the forecast period.” According to MarketsandMarkets, the feed preservatives market was valued at USD 4.5 billion in 2021 and it is projected to reach USD 6.7 billion by 2027, with a CAGR of 6.7%, in terms of value. Feed additives are non-nutritive products added to the basic feed mix. The increasing meat consumption is growing steadily in the global market. The key players are strengthening their livestock sectors by integrating their feed business operations to the end of the supply chain. Some of the other factors which contribute to the growth of the market are the growing application of livestock in the food industry, the increasing need for natural preservatives, etc. “By type, the anticaking age......
$4950

Farm Equipment Market by Tractor Power Output (< 30, 31-70, 71-130, 131-250, >250HP), Tractor Drive Type, Autonomous Tractor, Electric Tractor (Hybrid, Electric), Farm Equipment (Combine, Baler, Sprayer), Implement, Rental & Region – Global Forecast to 2027

“Government support with farm loan waivers/ credit finance and OEM/sales incentives to support dealer service and rental operations are expected to drive the farm equipment market during the forecast period.” The global farm equipment market is projected to grow from USD 99.4 Billion in 2021 to USD 126.0 Billion by 2027, at a CAGR of 4.0% during the forecast period. There has been a significant increase in farm equipment production over the years. However, in 2020, factors like COVID-19, limited supply of farm equipment parts, drop in the first half of new tractor sales, the shutdown of production facilities, and a decline in working capital, resulted in the decline in global farm equipment production. However, manufacturing facilities, opening of international borders, and gover......
$4950

Vertical Farming Market with COVID-19 Impact Analysis by Growth Mechanism (Hydroponics, Aeroponics, Aquaponics), Structure (Building-based vertical farm and Shipping container-based vertical farm), Crop Type, Offering, & Region – Global Forecast to 2026

The Vertical Farming market is expected to grow from USD 3.1 billion in 2021 to USD 9.7 billion by 2026; it is expected to grow at a CAGR of 25.0% during the forecast period. The major driving factors for the growth of the vertical farming market include high yield associated with vertical farming over conventional farming, year-round crop production irrespective of weather condition, advancements in light-emitting diode (LED) technology and requirement of minimum resources. Hydroponics growth mechanism Segment to dominate vertical farming market during forecast period The hydroponics growth mechanism is used widely by commercial growers. It is easier to set up, costs less than other mechanisms, and has a higher return on investments (ROI). Comparing the investments required to set u......
$4950

Agricultural Pheromones Market by Crop Type (Fruits & Nuts, Field Crops, & Vegetable Crops), Function (Mating Disruption, Mass Trapping, Detection & Monitoring), Mode of Application (Dispensers, Traps, & Sprays), Type, and Region – Global Forecast to 2026

“The agricultural pheromones market is projected to grow at a CAGR of 16.1% during the forecast period.” The global agricultural pheromones market is estimated to be valued at USD 2.9 billion in 2021 and is projected to grow at a CAGR of 16.1% to reach USD 6.1 billion by 2026.Increasing demand for high-value crops, such as organic fruits & vegetables and organic commodities among consumers, is projected to spur the pheromones market over the forecast period. Nowadays, consumers are conscious of the safety and nutritional value of the food they are consuming, thereby transforming the implementation of pest management programs and the utilization of pesticides. Farmers are employing environment-friendly and sustainable initiatives to decrease the usage of traditional pesticides th......
$5650

Plant Factory Market by Growing System (Soil-based, Non-soil-based, and Hybrid), Facility Type (Greenhouses, Indoor Farms, Other Facility Types), Light Type, Crop Type (Vegetables, Fruits, Flowers & Ornamentals), and Region – Global Forecast to 2026

“The plant factory market is projected to grow at a CAGR of 7.2% during the forecast period.” According to MarketsandMarkets, the global plant factory market size is estimated to be valued at USD 121.8 billion in 2021 and projected to reach USD 172.5 billion by 2026, recording a CAGR of 7.2% during the forecast period One of the major drivers is that it provides higher yield compared to traditional agricultural techniques, owing to the increase in harvest cycles. “By facility type, greenhouses are projected to dominate the market during the forecast period.” Greenhouses are high-tech structures dedicated to the cultivation of plants, particularly vegetables, flowers, and fruits. Environmental elements such as temperature, light exposure, irrigation, fertilization, humidity......
$5650

Hybrid Seeds Market by Crop Type (Cereals & Grains, Oilseeds & Pulses, and Vegetables), Key Crop (Corn, Rice, Soybean, Cotton, Canola, Tomato, Hot pepper, Cucumber, Watermelon), Cultivation Type, and Region – Global Forecast to 2026

Rising demand for organic food products supports the growth of the hybrid seeds market. The global hybrid seed market size is estimated to be valued at USD 25.2 billion in 2021 and is projected to reach USD 34.9 billion by 2026, recording a CAGR of 6.7%. Factors such as increasing application of cereals & grains in the feed, food, and biofuels industry alongside growing technological advancements such as the adoption of hybridization and are propelling the growth of the hybrid seeds industry. The recent COVID-19 pandemic is expected to impact the global seeds industry. The outbreak of COVID-19 has widespread implications on all the commodity markets, including seeds.  North American seed market includes some of the key countries in global seed market such as US, Canada, and Mexi......
$4950

Insect Repellent Active Ingredients Market by Type (DEET, Picaridin, IR 3535, P-Methane3,8 DIOL, DEPA), Concentration (Less than 10%, 10% to 50%, More Than 50%), Insect Type (Mosquitoes, Bugs, Ticks, Flies), End Application – Global Forecast to 2026

 “The insect repellent active ingredients market is projected to grow at a CAGR of 9.0% during the forecast period.” According to MarketsandMarkets, the insect repellent active ingredients market is estimated to be valued at USD 884 million in 2021 and is projected to reach USD 1,361 million by 2026, recording a CAGR of 9.0%, in terms of value. The market is primarily driven by factors such as increasing demand and consumption of insect repellent products globally. North American region accounted for largest the market share in the insect repellent active ingredients market owing to the presence of households and livestock population and their growth. However, one of the restraining factors in the growth of the insect repellent active ingredients market is the straight rules and re......
$5650

Molluscicides Market by Type (Chemical [Metaldehyde, Methiocarb, Ferric Phosphate] And Biological Molluscicides), Application (Agricultural and Non-Agricultural), Form (Pellets, and Liquid & Gel), and Region – Global Trends & Forecast to 2026

“The molluscicides market is projected to grow at a CAGR of 8.5%.”  The molluscicides market is estimated at USD 711 million in 2021 and is projected to reach USD 909 million by 2026. It is projected to grow at a CAGR of 8.5% from 2021 to 2026. The market is primarily driven the increased commercial production of horticulture crops such as fruits, vegetables, herbs, and nuts in recent years. The demand for such crops of refined and varied characteristics has been increasing worldwide, thereby increasing the market for molluscicides products. Molluscicide resistance is the natural ability of mollusks to survive exposure to strong active chemicals due to genetic modification and exhibit low susceptibility levels. Attaining this is the major challenge faced by the molluscicides ind......
$4950

Feed Premix Market by Ingredient Type (Vitamins, Minerals, Amino Acids, Antibiotics, Antioxidants), Livestock (Poultry, Ruminants, Swine, Aquatic Animals, Equine, and Pets), Form (Dry and Liquid), and Region – Global Forecast to 2026

The rise in demand and consumption of livestock based products is one of the major driving factors for the Feed premix market.” The global feed premix size is estimated to be valued at USD 24.3 billion in 2021 and is projected to reach a value of USD 32.9 billion by 2026, growing at a CAGR of 6.2% during the forecast period. The growth of this market is attributed to the increasing demand and consumption of livestock-based products. Although the regional network to reach customers (such as compound feed mixers and integrators) is established through distributors, the feed premix market has been moving toward a more service-based offering gaining popularity in the market. The distribution of premixes without damage to the nutrient quality requires effective packaging systems and a s......
$4950
We use cookies to deliver the best possible experience on our website.
By continuing to use this site, or closing this box, you consent to our use of cookies. To learn more, visit our Privacy Policy