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LOUIS AIME BETCHEM a MOUBITANG Rio De Janeiro, 2017 FUNDAÇÃO GETULIO VARGAS ESCOLA BRASILEIRA DE ADMINISTRAÇÃO PÚBLICA E DE EMPRESAS MESTRADO EXECUTIVO EM GESTÃO EMPRESARIAL ENTERING COCOA BUSINESS IN SUB-SAHARAN AFRICA, THE CASE OF CAMEROON DISSERTAÇÃO APRESENTADA Ã ESCOLA BRASILEIRA DE ADMINISTRAÇÃO PUBLICA E DE EMPRESSAS PARA OBTENÇÃO DO GRAU DE MESTRE LOUIS AIME BETCHEM A MOUBITANG Rio de Janeiro, 2017 1 | P a g e Louis Aime BETCHEM LOUIS AIME BETCHEM A MOUBITTANG ENTERING COCOA BUSINESS IN SUB–SAHARAN AFRICA; THE CASE OF CAMEROON Master thesis presented to Corporate International Master’s program, Escola Brasileira de Administração Pública, Fundação Getuilio Vargas, as a requirement for obtaining the title of Master in Business Management. Professor José Mauro Gonçalves Nunes Rio de Janeiro 2017 2 | P a g e Louis Aime BETCHEM Ficha catalográfica elaborada pela Biblioteca Mario Henrique Simonsen/FGV Moubitang, Louis Aime Betchem A. Entering cocoa business in Sub-Saharan Africa: the case of Cameroon / Louis Aime Betchem A. Moubitang. - 2017. 91 f. Dissertação (mestrado) - Escola Brasileira de Administração Pública e de Empresas, Centro de Formação Acadêmica e Pesquisa. Orientador: José Mauro Gonçalves Nunes. Inclui bibliografia. 1. Indústria cacaueira. 2. Cacau – Comércio. I. Nunes, José Mauro Gonçalves. II. Escola Brasileira de Administração Pública e de Empresas. Centro de Formação Acadêmica e Pesquisa. III. Título. CDD – 338.17374 3 | P a g e Louis Aime BETCHEM 4 | P a g e Louis Aime BETCHEM DEDICATION I dedicate this thesis to my wife Marianne and kids Brian and Brianna BETCHEM for their tolerance and support during these months of physical and mental absence, the effort they put all together to help on fulfilling each step of this Master program, their unconditional love that brought with motivation and determination every day of the program. My parents, brothers, and sisters that have been so close to me that I could feel them everywhere I was, motivating and helping to set higher targets and ambitions. AKNOWLEDGEMENTS I would like to thank the committee members of CIM program for their dedication in graduate education and the resources they put together to make this type of program possible for experienced workers. This includes the committee members of the included universities specifically GEORGETOWN UNIVERSITY, FUNDAÇÃO GETULIO VARGAS and ESADE where, the program took place, as well as the Professors that dedicated their time to share with the program members, their knowledge and experiences in different topics. I am thankful to my supervisor Professor José Mauro Gonçalves Nunes for his help on reshaping the topic of this thesis and for the advice provided to support each stage of the thesis in term of profit for my future business and interest in general for the business segment of cocoa. I wish to express my gratitude to Professor Michael CICHELLO, Professor José GUERRERO, the entire teams of admission and the management of program of the three schools, particularly Megan FINK, Megan SHAPLEIGH, Daniele SANTOS Sara Jane STONE for their dedication and availability in support of our stay comfort and assistance during the program classes and residency. I am especially thankful to all the team members of CIM3 that built a friendship environment of work around the program pushing each other for the best interest of all. I feel very lucky to be a part of such a group of innovative, mind opened and talented people. 5 | P a g e Louis Aime BETCHEM Table of Contents I - INTRODUCTION ........................................................................................................................... 11 I – 1- Contextualization Relevance of the Problem .................................................................................... 12 I – 2- Justification of the Research Theme .................................................................................................. 12 I – 3- Research Structure ............................................................................................................................. 13 II. RESEARCH QUESTIONS AND OBJECTIVES .............................................................................. 15 III. LITERATURE REVIEW .................................................................................................................. 15 III.1. The Business of cocoa ................................................................................................................ 16 III.2. The business of cocoa in Cameroon ........................................................................................ 20 III.3. Short Description of Cameroon ............................................................................................ 21 III.3. 1- Short History .................................................................................................................................. 21 III.3. 2- Geography ....................................................................................................................................... 24 III.3. 3- People ............................................................................................................................................. 27 III.3. 4- The Family ...................................................................................................................................... 28 III.3. 4- The Education System .................................................................................................................... 30 III.3. 5- The Economy................................................................................................................................... 33 III.3. 6- Politic .............................................................................................................................................. 37 IV - BUSINESS HISTORY IN THE CAMEROON .............................................................................. 40 V - HISTORY OF COCOA ..................................................................................................................... 44 V- 1- Cocoa Tree and Beans. ....................................................................................................................... 46 V- 2- Physical and Chemical Properties ....................................................................................................... 46 V- 3- Growing Cocoa Tree ........................................................................................................................... 48 VI - PRODUCTION OF COCOA IN CAMEROON ............................................................................. 49 VI- 1- State Cocoa Quality Policy In Cameroon ........................................................................................... 53 VII - DEVELOPMENT OF COCOA CULTIVATION IN CAMEROON ........................................... 54 VIII - CRISIS EFFECTS ON COCOA PRODUCTION AND BUSINESS ......................................... 58 IX - AFTER CRISIS COCOA BUSINESS ORGANIZATION ............................................................. 61 X - IMPROVEMENT OF COCOA MARKETING AND TRADE ...................................................... 63 X- 1- Development of Quality Assurance and Certification System ........................................................... 66 X- 2- Development of a System of Commodity Trade Finance ................................................................... 67 XI - THE IMPACT OF COCOA BUSINESS IN THE LOCAL ECONOMY ....................................... 68 XII- DEVELOPING THE COUNTRY INFRASTRUCTURE TO ...................................................... 70 INCREASE PRODUCTION AND COMMERCIALIZATION ............................................................ 70 6 | P a g e Louis Aime BETCHEM XIII - FARMERS FINANCING SYSTEMS ........................................................................................... 74 XIV - ENTERING COCOA BUSINESS IN CAMEROON ................................................................... 77 XIV- 1- Running a Farm ............................................................................................................................... 77 XIV- 2- Running Buying and Selling Activities .............................................................................................. 78 XIV- 3- Exporting Cocoa Beans from Cameroon ......................................................................................... 80 XV - Risks Associated to cocoa business ...................................................................................... 81 XVI- CONCLUSION ................................................................................................................................ 84 Bibliography ......................................................................................................................................... 86 APPENDIX .................................................................................................................................................... 90 7 | P a g e Louis Aime BETCHEM List of Illustration Figure 1 World biggest chocolate consumers SOURCE: (Forbes, 2015) ..................................................... 16 Figure 2 Production of cocoa since 1980. Source: (STATISTITA.COM, 2016) ............................................. 17 Figure 3 Cocoa bean pricing from 1986 to 2016. SOURCE: (Trading Economics, 2016) ............................ 18 Figure 4 Cocoa value chain. Source: (Oxfam, 2016) ..................................................................................
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