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Cameroon Agricultural Value Chain Report No. AAA25-CM Report No. Report No. Cameroon Chain Value Agricultural AAA25-CM Cameroon Agricultural Value Chain Public Disclosure Authorized Competitiveness Study June 30, 2008 Agricultural and Rural Development Unit Sustainable Development Department Country Department AFCC1 Africa Region Public Disclosure Authorized Public Disclosure Authorized Document of the World Bank Public Disclosure Authorized Document of The World Bank CAMEROONAGRICULTURAL VALUECHAIN COMPETITIVENESS STUDY Final Report June 30,2008 Agriculture and Rural Development (AFTAR) Sustainable Development Network (SDN) Africa Region Vice President: Obiageli Katryn Ezekwesili Country ManagedDirector: Mary A. Barton-Dock Sector Manager: Karen McConnell Brooks Task Team Leader: Ousmane Seck Acronyms ACP African Caribbean and Pacific ADB Asian Development Bank AGI Agribusiness CAM Mvog-Betsi Poultry Farming Compound CCAA Competitive Commercial Agriculture in Africa CD Customs Duty CDC Cameroon Development Corporation CEMAC Central African Economic and Monetary Community CICAM Cameroon Industrial Cotton Corporation CIF Cost, Insurance, and Freight CIRAD International Cooperation Center for Agricultural Research CNAPA National Commission for the Certification of Agricultural Pesticides COM Commercial Farm DVA Domestic Value Added EPA Economic Partnership Agreement EU European Union FAM Family Farmer FAM high Family Farmer using improved inputs FAM low Family Farmer featuring low input use FA0 Food and Agriculture Organization FFB Fresh Fruit Bunch FOB Free on Board FONADER National Rural Development Fund GDP Gross Domestic Product ha Hectare ICAC International Cotton Advisory Committee IFAD International Fund for Agricultural Development IPM Integrated Pest Management IRAD Institute ofAgricultural Research for Development kg Kilogram km Kilometer MAISCAM Cameroon Maize Corporation MIDENO North-West Province Development Authority MIDEVIV Seedlings and Foodstuff Development Authority MINAGRI Ministry of Agriculture MINEPIA Ministry ofLivestock and Fishing MT Metric Ton NGO Non-Governmental Organization NPK Nitrogen Phosphorus and Potassium Fertilizer NPMB National Produce Marketing Board PAMOL Palm Oil Corporation PNDRT National Program for the Development ofRoots and Tubers PNEVA National Program for Agricultural Extension and Training PNVRA National Program for Agricultural Extension and Research SABC Cameroonian Breweries Corporation SAFACAM Ago-industrial Farms ofCameroon SOCAO Western Poultry Farmers Cooperative i SOCAPALM Cameroon Palm Oil Corporation SODECOTON Cameroon Cotton Development Corporation SOWEDA South-West Development Authority SPC Cameroonian Provenderies sv Shipment Value TT Temporary Tax UCB Cameroonian Breweries Union USD United States Dollar XAF, BEAC Central Afncan Franc, Bank of the Central African States 11 Major De finitio ns VALUECHAIN INDICATORS Domestic Value Added (DVA) - Domestic costs and mark-ups + Official duties and tax + Unofficial charges & extra costs Shipment Value (SV) - Domestic value added + Foreign components PRODUCTSTAGES 0 Farm production - Farm gate product 0 Assembly - Assembled raw material 0 Processing - Processed raw material 0 International logistics - Traded commodity (Product 1,2,3) EXCHANGERATE Local Currency - CFA Franc BEAC (XAF) USD 1.00 - XAF 480 XAF 1,000 - USD 2.08 WEIGHTS AND MEASURES 1 hectare (ha) - 2.417 acres (ac) 1 kilogram (kg) - 2.204 pounds (lbs) 1,000 kilograms (kgs) - 1 metric ton (MT) 1 kilometer (km) - 0.62 miles ... 111 Acknowledgements This Cameroon Agricultural Value Chain Competitiveness Study was carried out by the World Bank, the FA0 and a team of consultants. The World Bank task team included Ousmane Seck (Task Team Leader and Senior Rural Development Specialist, AFTAR), Loraine Ronchi (Economist, AFTAR), Anke Reichhuber (Economist, AFTAR), Francois Mkouanga (Rural Development Specialist), Germaine Mafougong (Program Assistant, AFTAR), and Irene Marguerite Nnomo Ayinda-Mah (Team Assistant, AFCC1). The Consultant team included John Keyser, Tania Rajadel, Arsene Nkama. Marc Moens (FAO) provided an excellent assessment of the poultry sector. The World Bank would like to acknowledge the excellent collaboration with Dr. Yankam on the behalf of the Ministry ofAgriculture and Rural Development (MINADER). The participants of a stakeholder feedback workshop held in Cameroon in February 2008 are thanked for their substantive comments and feedback. Grahame Beaumont Richard Dixie (Senior Agricultural Specialist, SASDA), Stephen Mink (Lead Economist, AFTSN) and Abdoulaye Seck (Senior Economist, AFTP3) served as Peer Reviewers. Renato Nardello (Senior Operations Officer, AFTAR) provided advice and comments. Mary Barton-Dock (Country Director, AFCCl), Karen McConnell Brooks (Sector Manager, AFTAR), and Francois Le Gall (Program Coordinator, AFTAR) supported the study and ensured that resources were available for its implementation. The team would also like to acknowledge the financial support provided by the Africa Agricultural Markets Trust Fund (DfID). 1v Table of Contents Acronyms ....................................................................................................................................................... i ... Major Definitions ........................................................................................................................................ 111 Acknowledgements ...................................................................................................................................... iv Table of Contents .......................................................................................................................................... v List of Figures ................................................................................................................................................ List of Tables vii .............................................................................................................................................. ... Executive Summary .................................................................................................................................. viii 1. Introduction ........................................................................................................................................... 1 1.1. Role of Agriculture in Cameroon ...................................................................................................... 1 1.2. Global food and fertilizer prices........................................................................................................ 2 1.3. Study Objectives ............................................................................................................................... 4 2 . Context .................................................................................................................................................. 6 2.1. Geography ......................................................................................................................................... 6 2.2. Commodity Coverage........................................................................................................................ 6 2.3. Production systems............................................................................................................................ 8 2.4. Agriculture Institutions...................................................................................................................... 9 3 . Quantitative Value Chain Analysis ..................................................................................................... 15 3.1. Analytical Framework ..................................................................................................................... 15 3.2. Procedures and Assumptions., ......................................................................................................... 17 4 . Inputs ................................................................................................................................................... 20 4.1. Factors Affecting Prices of Imported Goods ................................................................................... 20 4.2. Domestic Transportation Costs ....................................................................................................... 22 4.3. Fertilizer analysis ............................................................................................................................ 22 4.4. Cost Composition of other Inputs ................................................................................................... 23 5 . Cassava ................................................................................................................................................ 25 5.1. Fresh Cassava .................................................................................................................................. 27 5.2. Cassava into Bobolo ........................................................................................................................ 29 5.3. Cassava into Fufu ........................................................................................................................... -31 6 . Cotton .................................................................................................................................................. 33 7 . Maize ..................................................................................................................................................
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