VALUE ADDED AGRICULTURE: AN ANALYSIS OF ECONOMIC RELATIONS IN THE COFFEE VALUE CHAIN IN THE NORTH WEST REGION OF CAMEROON / Value Added Agriculture: An Analysis of Economic Relations in the Coffee Value Chain in the North West Region of Cameroon

Yıl 2020, Cilt: 4 Sayı: 2, 281 - 296, 30.10.2020

Peter Ngek Shillie Mary Juliet Bıme Egwu

https://doi.org/10.29216/ueip.703761

Öz

This study analyses profitability with respect to value added in the coffee value chain in the North West Region of Cameroon. As objective, this study examined the economic relations at different stages of the coffee value chain. Thus, the study analysed the prices, costs, margins and profit sharing at different stages in the coffee value chain in the North West Region of Cameroon. Purposive sampling technique was used to select 40 respondents from two divisions (Mezam and Bui) who formed the study sample. Analysis employed the Cost–Return and Benefit–Cost technique to measure profitability at selected stages (coffee producers/farmers, coffee processors, coffee exporters and coffee retailers) in the value chain. Results showed that the cost of production of dry parchment, green bean, powder coffee and brewed coffee was Franc Financial Community of Africa - FCFA103,027/ha, FCFA 2,933.7/kg, FCFA 1,043.12/kg and FCFA 7,335/kg respectively with Net Profits of FCFA 15,192, CFA 1,566.3, FCFA 528.88 and FCFA 4,665 respectively. Furthermore, Benefit-Cost ratio analysis revealed that the coffee value chain is a profitable sector with Benefit-Cost values of 1.1, 1.5, 1.5 and 1.6 respectively for coffee producers/farmers, coffee processors, coffee exporters and coffee retailers. Though profitable, the study uncovered that coffee producer who apparently at the beginning of the value chain doing most of the job received the least benefit when compared with other actors. This study provided evidence that retailers were most benefited in the value chain compared to coffee producers, processors and coffee exporters. The study recommends that for a profitable coffee business within the study area, the government, coffee cooperatives and all the actors along the value chain should work in close collaboration.

Anahtar Kelimeler

Profitability, Coffee Value Chain, Benefit Cost Analysis, Cost Return, Cameroon

Kaynakça

• Achancho, V. (2013). Review and Analysis of National Investment Strategies and Agricultural Policies in Central Africa: The Case of Cameroun. In Rebuilding West Africa’s Food Potential, A. Elbehri (ed.), FAO/IFAD
• Amanor-Boadu, V. (2003). Preparing for Agricultural Value-Adding Business Initiatives: First Things First. Agricultural Marketing Resource Center, Department of Agricultural Economics, Kansas State University, Manhattan. Available online http://agmanager.info/agribus/busdev/assess/ Preparation%20Steps.pdf
• Aw, B.Y., Chen, X., and Roberts, M.J. (2001). Firm-Level Evidence on Productivity Differentials and Turnover in Taiwanese Manufacturing. Journal of Development Economics, 66, 51-86.
• Born H. (2001). Keys to Success in Value-Added Agriculture A Publication of Southern Sustainable Agriculture Working Group and The National Center for Appropriate Technology’s ATTRA Project, 1-20.
• Coltrain, D., D. Barton, and M. Boland. (2000). Value Added: Opportunities and Strategies. Arthur Capper Cooperative Center, Department of Agricultural Economics, Kansas State University. Available online: http://www.agecon.ksu.edu/accc/kcdc/pdf%20Files/VALADD10%202col.pdf
• Crowdera, D. W., and Reganold, J. P. (2015). Financial Competitiveness of Organic Agriculture on A Global Scale. Proceedings of the National Academy of Sciences of the United States of America, 112(24), 7611–7616.
• Dreze J. and Stern N. (1987). The Theory of Cost Benefit Analysis. Handbook of Public Economics, 2, 909-989.
• Auerbach A. J. and Feldstein M., (1987). Handbook of Public Economics. 2, 909-989, Retrieved from https://www.sciencedirect.com/ handbook/handbook-of-public-economics/vol/2/suppl/C Exports News (2020). North West Cooperative Association and Coffee in Cameroon. Retrieved from https://exportsnews.com
• Giri Y. P (2006). Status and Potentiality of Coffee Cultivation in Nepal. In: Tea-A-Tea. National Tea and Coffee Development Board, New Baneshwor, Kathmandu, Nepal.
• ICO (2017). World Coffee Production in Crop Year 2016/17 Annual Review Country Coffee Profile- Cameroon
• IC0 (2020). Historical Data on the Global Coffee Trade. Retrieved from http://www.ico.org/ new_historical.asp
• International Trade Center (2009). Cameroon Coffee Sector Development Strategy 2010 to 2015. Available online at http://www.intracen.org
• Lu R and Dudensing R. (2015). What Do We Mean by Value-added Agriculture?. Choices Agricultural & Applied Economics Association 4th Quarter, 30(4), 1-8.
• Nguiffo, S. and SonkoueWatio, M. (2015). Agro-Industrial Investments in Cameroon: Large-Scale Land Acquisitions Since 2005. London: IIED.
• Nguyen G. N. T. and Sarker T. (2018). Sustainable Coffee Supply Chain Management: A Case Study in Buon Me Thuot City, Daklak. Vietnam International Journal of Corporate Social Responsibility, 3(1), 1-17.
• Njomo L.M, Arnolds C., and Shillie P.N. (2019). Enhancing Indigenous Agricultural Management Techniques: A Framework to Minimize Post-harvest Losses in Potato Farming in Bui Division, North West Region of Cameroon. International Journal of Management and Humanities, 3(9), 46-55.
• OLAM (2017). Green Coffee Production in Cameroon. Retrieved from https://www.olamspecialtycoffee.com/origins/africa-middle-east/cameroon.html
• Ponte, S. (2002). The ‘Latte Revolution’? Regulation, Markets and Consumption in The Global Coffee Chain. World Development, 30(7),1099-1122.
• Porter, M E., (1985). Competitive Advantage. New York: The Free Press.
• Shillie P.N, Bime M. E., Balgah R.A., and Wiysherinyuy M.L. (2019). Profitability Analysis of Small Holder Maize Farm Systems in the Western Highlands of Cameroon: Evidence from Tubah Sub-division SMS. Journal of Entrepreneurship & Innovation, 6(1), 12-20.
• Siebert, J.W., Jones, R., and Sporleder T. L. (1997). The VEST Model: An Alternative Approach to Value Added. Agribusiness, 13(6).
• U.S. Department of Agriculture (2015). Value-Added Producer Grant Program, Final Rule, 7 CFR Part 4284, Federal Register, Rural Business-Cooperative Service. Vol. 80, No. 89. Available online: http://www.gpo.gov/fdsys/pkg/FR-2015-05-08/pdf/2015-10441.pdf
• Wessen, P. D. and Oehmke, J. F. (2001). Privatizing Markets for Heterogeneous, Experience Goods: Coffee in Northwest Cameroon. Michigan State University Department of Agricultural Economics, Staff Paper.