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Impact on the sector’s growth

  • Imports amount to around $17 million, indicating signification opportunity for local production given inherent demand.
  • Potential for a large oil palm or oilseed plantation and mills to employ >50,000 people.
  • Aid in the development of local food processing, soaps and detergents, plus local biodiesel production. Also may have significant impact upon import and costs of fuel.


Market opportunities

 
  • Of all the arable crops, the market for oilseeds commodities will undergo the greatest expansion. Vegetable oils, from both oilseed crops and palm oil will remain fastest growing commodity in terms of consumption. Incremental demand for biodiesel. Prices remain strong.
  • Supply cannot meet the needs of local consumption. Local oil refiner obliged to import. Production of palm kernels and palm oil not sufficient for the numerous tablet soap factories. Any surplus local stock goes to local and sub regional markets.

Competitiveness

 
  • Optimal oilseed production zones are situated in the Southwest (Monomodal forest zone) and Centre (Bomodal forest zone). Despite Cameroon’s abundant west tropical forests, oil palm production is still at a fraction of its potential.
  • High energy costs due to a supply shortfall, as well as poor densification of road network. However, those roads requiring upgrade / construction have been identified by government. In addition, electricity and water supply is being upgraded to meet new demand.
  • Basic knowhow and technical skills available in the short term. Low salaries, high unemployment rate, high labour productivity, culture of agriculture.

Investor prospects

  • Key incumbents in the sub-sector include Socapalm; Safacam; Pamol; CDC; Unexpalm and Ferme Suisse.  The Malaysian company Sime Darby negotiating for 300,000 ha in the southern part of the country for palm oil plantations.

Impact on the sector’s growth

  • 90% of rice consumed locally is imported, indicating presence of major local demand.
  • Currently 145,000 farmers are involved in rice production. Potential for large scale employment
  • Second main staple food, price affects disposable income and demand for products in other sectors.

Market opportunities

  • World production expected to expand modestly, whilst global consumption is projected to rise broadly in line with population growth. Trend in falling prices likely to stabilise, rendering rice more expensive relative to wheat.
  • Production of rice in Cameroon meets only 20% of domestic demand, whilst local prices have remained relatively stable. State dependent upon international markets to meet shortfall in local supply.

Competitiveness

  • Favourable natural conditions that are yet to be tapped, rice can be grown in every natural region of the country.
  • Most of local production comes from irrigated schemes in Northwest and Far North, far away from centres of consumption in the South. Poor road networks hinder transport from North to South, although the government has prioritised the upgrading / lengthening of the road networks.
  • Cameroon has the human and institutional capacity to support development of rice production.

Investor prospects

  • IKO has invested $120 million in rice station, plus 99 year lease for 10 000 ha. Sino-cam obtained 99 years lease for tract of productive land for production, commercialisation of rice

Impact on the sector’s growth

  • 15% of maize needs satisfied through imports, potential to reduce imports through local production

  • Commercial farms will generate thousand of jobs, aiding unemployment rate.
  • Determinant of disposable household income and affects demand from other sectors. Input to the biofuel; livestock and poultry sectors

Market opportunities

  • Global demand to exceed supply by 17.2 million tons in 2011. Prices expected to decline from 2015 onwards, as US mandate for maize-based ethanol reaches maximum.
  • Local supply expected to increase not offset by marginal increase in demand. Resultant surplus enables potential export to the region.
 

Competitiveness

  • Optimal production zones situated in the Centre (bimodal forest region); West (Upper Plateau); and Adamaoua (Upper Savannah). Maize is not difficult to grow, turnaround time of less than 3 months.
  • High energy costs due to a supply shortfall, poor densification of road network. However, roads requiring upgrade / construction earmarked government. Electricity and water supply being upgraded to meet new demand.
  • Basic knowhow and technical skills available in the short term. Low salaries, high unemployment rate, high labour productivity, established culture of agriculture. Storage, distribution of cereal products handled by Cereal Agency.

Investor prospects

  • Compagnie Fruitiere, Dagnis, Danzer Group present. Chinese multinational Sino-Cam has obtained a 99-year lease on a huge tract of productive land, in Nanga-Eboko, for production and commercialisation of rice, maize, cassava, fruits and vegetables.

Impact on the sector’s growth

  • Currently importing approximately $54 million, potential exists for local production to reduce imports
  • 2 to 3 large sugar mills will support 30,000 + workers and out growers.
  • May aid development of local food processing (especially confectionary sector), plus local ethanol production. Could have a significant impact upon import and cost of fuel.

Market opportunities

  • Demand forecast to far exceed supply and estimated production deficit at 30 000 – 50 000 tons per year. Prices very strong given increasing production from Asia, as well as incremental demand for biodiesel.
  • Subdued production forecast for 2014/15. Sosucam is struggling to raise output, which has contributed to growing shortfall in domestic market. Sugar produced by Sosucam is partly exported informally to Nigeria, thus further reducing local supply.
 

Competitiveness

  • Sugar potential is largely untapped as there are many suitable areas for cane sugar production from the wet tropical areas to sahel areas amenable to irrigation.
  • The product is bulky and weak overland transport is a competitive disadvantage.
  • Basic knowhow and technical skills available in the short term. Low salaries, high unemployment rate, high labour productivity, culture of agriculture.

Investor prospects

  • Large tracts of land have been acquired by a French investor for sugar cane production. New private company, Forzi sugar, is building a sugar refinery in Southwest province. US$10 billion will be invested in the construction of a sugar mill in Kumba. Financial sector reforms, in addition to prudent fiscal spending has made the prospects for the local sugar industry more attractive to private sector investors

Impact on the sector’s growth

  • Exports of raw rubber amount to $94 million. Almost the entire harvest is exported.
  • Currently, the rubber sector accounts for 30,000 jobs. Potential for + 5 000
  • Critical input to the manufacturing sector, tyre sector which accounts for 50%, as well general rubber goods


Market opportunities

  • Large expansion of raw rubber is expected, with increases in demand from Chinese, also latex gloves. Production is growing as world prices increase, but there are not enough rubber plantations to take advantage of the boom.
  • Demand is projected to grow fastest in developing countries, 2.5% p.a. due to economic growth and increased demand for domestic processing of rubber products
 

Competitiveness

  • Cameroon possesses the wet tropical climate required for optimal rubber production.
  • The primary facilities required for exporting crude rubber exist.
  • Cameroon remains one of the few African members of the International Research Group on Rubber.
 

Investor prospects

  • Production currently dominated by Hevecam, CDC, Safacam. CMG has the intention to create the largest modern runner plantation. The company has acquired 46 000 hectares of additional land near Kribi, to expand production of Hevecam and hopes to double production thereof in 5 years. The Singaporian Golden Millennium Group (GMG) owns 18,000 hectares of plantations in Cameroon. Harrison Mayalam eyeing Cameroon for expansion of rubber production.

Impact on the sector’s growth

  • Exports amount to $4.8 million. Production mainly exported in the form of saw wood (80%); veneer sheets (13%) and unprocessed wood (7%).
  • Positive effect on jobs and incomes, boosting employment by + 5 000
  • Raw timber serves as an important input to wood processing / manufacturing sector , also an input to housing / construction.


Market opportunities

  • Global wood panel consumption is set to increase to 299.3 million m³ by 2015, encouraged primarily by the revival in the housing sector in North America.
  • Large illegal domestic trade in rubber distorting supply figures. Prices driven down by illegal forestry activities. Large regional demand, especially Chad.
 

Competitiveness

  • Cameroon has second largest forest area in Africa, covering 22.5 million ha, of which 14 million suitable for commercial operations, potential inventory of 300 marketable species, 60 are currently being exploited.
  • Exported through the port of Douala and also through rail network which consists of one line, 1 100 km in length, owned by the state. Ministry of Transport seeking to expand rail network, feasibility studies currently underway. In addition, Douala port benefitted from major refitting and refurbishment.
  • Skills required for employments in this sector  are not complex.

Investor prospects

  • 60% of the sector is dominated by a few foreign companies from France, Italy and Lebanon. Significant foreign investment is evident in this sector.

Impact on the sector’s growth

  • Currently exporting approximately $7.25 billion per year, driven primarily by export to Netherlands, Belgium and France.
  • Currently, over 600,000 people employed within this sector. Potential for 5 – 10 000 jobs
  • Cocoa serves as an input to food processing, particularly in terms of confectionary and chocolate products.

Market opportunities

  • Rising demand, due in part to increased demand for chocolate in Asia Pacific, alongside production shortfalls. Despite relatively weak world prices, potential to increase production to close the gap.
  • Demand expected to grow domestically, fuelled by rising disposable incomes. Cocoa production expected to grow by 34.9% by 2014/15, although not sufficient to offset demand
 

Competitiveness

  • Optimal cocoa production zones situates in the Southwest (Monomodal forest zone); Centre (Bimodal forest zone); and Northwest (Upper Plateau).
  • High energy costs due to supply shortfall, poor densification of road network. Roads requiring upgrade / construction earmarked by government. Electricity and water supply being upgraded to meet demand.

Investor prospects

  • Dominated by three multinational companies: Cargill (US); Barry Callebaut (Swiss) and ADM Cocoa Ltd. Substantial investment and domestic reform evident in this sub-sector.

Impact on the sector’s growth

  • $80.5 million imported, 100% of local wheat requirement, indicating a major opportunity to reduce imports through local production
  • Has the potential to provide jobs and boost income. Approx. 2 000 jobs.
  • Wheat serves as an input to the food processing industry as well as an input for breweries.


Market opportunities

 
  • Global supply moderately expected to exceed demand, whilst long-term decline in global prices in expected to continue. Global availabilities of wheat remain quite ample.
  • Local demand for wheat is growing.

Competitiveness

  • Wheat grows best in temperate zones where there is low to moderate rainfall.
  • High energy costs due to a supply shortfall, as well as poor densification of road network. However, those roads requiring upgrade / construction have been identified by government. In addition, electricity and water supply is being upgraded to meet new demand.
  • Basic knowhow and technical skills available in the short term. Low salaries, high unemployment rate, high labour productivity, culture of agriculture.
 

Investor prospects

  • Local entrepreneurs include:

Impact on the sector’s growth

  • Currently importing almost $500 000 worth of cassava, indicating presence of local demand and potential to reduce imports through local production
  • Likely to have significant impact in terms of the creation of jobs
  • Huge potential as a wheat substitute, could negatively impact demand for wheat

Market opportunities

  • Global demand estimated to reach 3.1 billion tons by 2015, with average annual growth rate of 2.4%. Cassava starch is in high demand by the industrial sector in China as input for several industrial processes.
  • Growing local demand, particularly as demand for cassava as animal feed is rising. DRC has large demand for cassava leaves. Potential for cassava to substitute for wheat flour
 

Competitiveness

  • Optimal cassava production zones are situated in the Centre (bimodal forest zone) as it possesses the suitable climatic, temperature, rainfall and soil conditions necessary for cassava growth.
  • High energy costs due to a supply shortfall, as well as poor densification of road network. However, those roads requiring upgrade / construction have been identified by government. In addition, electricity and water supply is being upgraded to meet new demand.
  • Basic knowhow and technical skills available in the short term. Low salaries, high unemployment rate, high labour productivity, culture of agriculture.
 

Investor prospects

  • IKO has already tried production of maize on a portion of the Ndjoré lands but their stated intention is to pursue cassava production. Sino-cam obtained 99 years lease for tract of productive land for production, commercialisation of cassava.

Impact on the sector’s growth

  • Currently exports amount to approximately $59 million, which accounts for 20% of total export earnings.
  • Large coffee plantation has the potential to employ about 5 000 jobs


Market opportunities

  • Despite volatility, global demand and prices generally rising. Demand for specialty and niche coffee is particularly strong, as consumers are becoming more discerning.
  • Local coffee production  expected to rise by 33.5% by 2014/15. Demand not expected to grow by the same proportion. Resultant surplus has potential for export to satisfy rising global demand
 

Competitiveness

  • Optimal coffee production zones situated in the Southwest (Monomodal forest zone); Centre (Bimodal forest zone) and Northwest (Upper Plateau).
  • Cameroon Coffee Sector Development Strategy objectives include increasing number of storage warehouses; water sources. Roads requiring upgrade / construction earmarked by government. Good handling services at port level in Douala
  • Active, young population, tradition of coffee production; good product knowledge by producers; diverse production; good product processing services in the production zones.
 

Investor prospects

  • Local entrepreneurs have the means/know-how to compete.

Impact on the sector’s growth

  • Currently exports of bananas and plantains amounts to almost $3 billion. Cameroon relatively lightweight exporter of bananas, versus Latin American markets and is focused upon European market.
  • Additional plantations of varieties of tropical fruit will have a positive impact upon jobs and incomes
  • Likely to have an impact upon the food processing sector. Improve quality, reduce costs for tourism sector, local consumers

Market opportunities

  • Despite slowdown, demand continues to grow in key markets (EU, Mid East, Asia); however, more countries now competing in horticulture export sector
  • As incomes rise, demand for fruit and vegetables and processed products (juices etc.) growing faster than other basic foods; plus CEMAC increases opportunities for export
 

Competitiveness

  • Optimal production zones for bananas include Southwest (Monomodal forest zone) and Centre (Bimodal forest zone).
  • The majority of tropical fruit production takes place in coastal regions, with easy access to port transportation. Douala port has benefitted from major refitting and refurbishment. However, storage facilities remain an issue
  • Basic production skills exist; upgrades and supporting services needed (certification, packaging), but can be addressed by private investors
 

Investor prospects

  • Bananas mainly produced by private companies with French and American capital; including CDC, SPNP and Del Monte. . In Nanga-Eboko, a Chinese multinational called Sino-Cam has obtained a 99-year lease on a huge tract of productive land. The company specialises in the production and commercialisation of rice, maize, cassava, fruits and vegetables.

 

Impact on the sector’s growth

  • Majority of livestock is imported, amounting to about $2 million, indicating local demand. $1.5 million of pork imported, and $200 000 of poultry

  • Potential investment likely to generate jobs + 5 000
  • Protein foods constitute part of diet. As such, changes in price have affect upon disposable income available for consumption of other products.
 
 

Market opportunities

  • Moderate increases in production and consumption on a global scale expected. 87% of global growth in production attributable to non-OECD countries. Increasing purchasing power in developing countries leading to increased demand for protein foodstuffs.
  • Large imports of poultry and livestock, indicating demand. However, demand very income sensitive.
 

Competitiveness

  • The centre of Cameroon is dominated by the Adamawa massif, a sparsely populated plateau and area of transition from the forests of the south to the savannah of the north, chiefly used for grazing cattle . With the current increase in crop area, coupled with population growth, less land is available for grazing. Minimal range management and development grazing livestock depend on poor and degraded rangeland often of very low nutritional quality. Livestock are raised under extensive systems and forage availability is a major problem.
  • Rail network consists of one line, 1 100 km in length, owned by the state. Ministry of Transport seeking to expand rail network and feasibility studies currently underway.
  • Poultry production is organised and apart from private firms includes large scale operations to supply day-old chicks and fertilised eggs to farms. Factory units have been set up to produce feed to poultry and pigs. Farmers have developed an original agricultural system that harmoniously integrates crops and livestock production. 
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Investor prospects