In the Middle of It

Cameroon and Nigeria have recently sought to become affiliated with the Cote d’Ivoire-Ghana Cocoa Initiative. Disengaging the Cocoa industry from the state has long been a goal of this country, and is now coming to fruition. This initiative essentially offers economic support to the countries involved, providing a minimum price at which they will sell their cocoa products. Over the past two years, origin differential prices have fallen by over 150%. Origin differential is an additional premium paid for cocoa from a particular country due to the cocoa’s quality and performance reliability. With these two countries, over two-thirds of the world’s cocoa production will be protected under the CIGCI, bolstering the negotiating leeway for better prices for cocoa farmers worldwide. Cameroon is the fourth largest cocoa producer in the world, producing 290,000 metric tons in the past season, a steadily increasing number and a record harvest. The price at which a kilogram of beans was sold to buyers has also increased by 80 FCFA (currency of the country), or approximately 12 cents, over the past two years. This trend bodes well for the economy as a whole, as total economic growth could reach 4% per year over the next two years. SIC Cocoa and Chococam are the two main companies responsible for Cocoa harvesting, production within Cameroon. SIC Cocoa ownership is divided into 50% state control and 50% Barry-Caillebaut conglomerate which is the world’s largest chocolate processing company.