The Absence of a Minimum Guaranteed Price Keep Cameroon Cocoa Farmers in a Debt Cycle

Unlike other major cocoa-producing countries where the government decides on the farmers’ minimum guaranteed price at the beginning of each season, cocoa prices in Cameroon strictly follow the trends of the international market.
Since the start of the 2022 low crop season, just like many other years, the price has been above EUR 1,524/MT at a farmgate price, which farmers find acceptable. Unfortunately, once production starts rising, farmgate prices usually fall below EUR 1,372/MT, making it difficult for farmers to do financial planning for their revenue. The reduced revenue ends up serving only to pay back agri-chemical loans and other important farm handling costs.
Seeing their parents trapped in a debt cycle, many Cameroon young generation hesitates to work in the cocoa farming industry and follow rural exodus trends to neighboring towns. This is partly the reason why the country has not been able to cross the threshold of 300,000 MT per year.