Introduction to Cameroon’s Cocoa Sector
Cameroon is the fifth largest producer of cocoa in the world after Ivory Coast, Brazil, Ghana, and Nigeria. Mainly, the global cocoa is produced near the coastal zones and central east region of Cameroon. Cameroon is the fourth largest producer of cocoa in Africa. Earlier, south-western area of Nigeria border dominated 40% of production in Cameroon cocoa. Production of cocoa is still small scaled and generally take place in small family farms. Since 19th century, as compared to other agricultural activities, cocoa production has been playing role in Cameroon`s economic development and growth and is considered as an main cash crop for more than 75% of the population (Drum Commodities, 2012). This report undertakes a research proposal on finding the research questions on challenges faced by cocoa sector in regard to logistic management. In order to process an exploratory research report, a research proposal is a form of outline to the research which is to be undertaken through Review of literature, research questions, research design, research proposal and research approach are considered in the following report.
To achieve the main objective of the research, following research questions will be undertaken-
- What are the main risks in Cocoa Sector of Cameroon?
- What are the challenges faced by cocoa sector regarding managing the logistics in Cameroon?
- Why did cocoa sector remain underdeveloped in the Cameroon?
According to Quartey (2013), the liberalization in cocoa sector has left both government and farmers in cocoa producing areas with insufficient resources. The authorities do not provide tools to manage the fluctuations in prices of cocoa. Majorly, Cameroon`s cultivation is strongly influenced by the activities of agricultural sectors in the last five years. The revenue generation from agricultural products such as wood, banana, cotton, coffee and cocoa. One of the oldest risk that supply chain of cocoa sector faces is the productive risk because of increase in price of fertilizers and pesticides.
As per the research proposed by Edith (2018), it is seen that the risk associated with price and goods in transit is spreading like a wild fire. As cocoa is cultivated on total surface area of 450000 hectares by small farmers. Each farmer cultivate 1 to 3 hectares of land. Cocoa is generally cultivated in around 7 to 10 regions of Cameroon including Centre region producing 90000 tons every year. The transportation problems occur because the production zone of cocoa is extended to coastal areas with altitude of 400m to 850m. The cocoa is cultivated on terrestrial regions where building logistics infrastructure is next to impossible. The government of South Africa has left the sector isolated and neglected the idea of privatizing the sector because privatization cannot be accomplished due to poor knowledge of farmers. Lack of education in farmers and challenges in logistics management led to collapse of NPMB (National Produce Marketing Board) due to corruption of Board of Directors and stakeholders.
According to Folefack (2016), the corruption of stakeholders and embezzlement of funds do not allow to invest and better the logistics management. Further, the government has failed to recognize the problem such as lack of proper link from farms to market roads and lack of proper education among farmers. Moreover, the cocoa industry is sensitizing the population on child labor. In Cameroon, there is a low ratio per square kilometer. There is a huge distance difference between the urban and rural population. These vast distances hamper the transportation system as majority of cocoa is produced in rural areas. Moreover, inefficient rail infrastructure, poor road system with inefficient borders raise the transportation costs for the cocoa sector which has the ability to sell its products in another African countries.
Research Questions on Challenges Faced by Cocoa Sector
As per the statement of Mbella, & Fonjong (2018), the transportation of African goods suffers a lot of problems because of ongoing war conflicts. For example- it is necessary to take relevant precautions to safeguard cargo because of war conflicts in certain parts of the country. These war conflicts incur a huge cost of troops and weapons which do not allow the government to focus on building infrastructure and managing logistics. While delivering goods to Africa, there are many procedures that has to be taken into account. Irrelevant knowledge and experience to trade in market can lead goods to restrict in customs for months. The preliminary preparation which is done by the agency in Europe enforces the necessity to send the documents.
According to Pearson (2015), apart from government inefficiencies, there are large number of issues in the part of private sector that restrict the smooth functioning of trade logistics which includes clearing agents who do not have proper training and professionalism. Moreover, inefficient maritime agents and small peasants or trader are not familiar with trade transactions. Quality is a major issue which affects the export price of Cameroon cocoa. The Cameroonian cocoa is discounted with varying amounts as compared to Ghana, quality defects due to considerable fat percentage. Additional challenge is associated with the distance for the Cameroon cocoa such as remote, underdeveloped, facing border control, infrastructure and inspection challenges and war conflict destinations.
After 2011 September, the government planned to spend 175 billion for constructing 350 km of roads for the next decade to enable farmers to move their produce effectively. New roads reduce waste and ensure that a large volume of crops can be sold internationally. For the international market, it is observed that there is no formal system of transferring goods and when it is received, the space is not available in the designated sectors. Many principle warehouses are built to store the specific goods for example- five warehouses store essential drugs, and remaining stores radiological products. (Njinyah, 2018).
As per the research conducted by Mukete, Li, Beckline, & Patricia (2018), although the humidity in Cameroon is not suitable for storages, as there is no proper light. Further, thermometers in warehouses do not function actively in monitoring the system. The limitation occurs on the part of warehouses which have less storage space. Moreover, expiry products are scattered in warehouses. To increase the volume of cocoa in Cameroon exports, the custom and dockyard services should be improved and provided a separate storage space for the cocoa. Due to expired goods, the quality of cocoa in the particular warehouses get compressed.
Choosing a relevant and appropriate research methodology is an important part of research methodology. The perspective of other people and practical consideration of challenges by a researcher are different. On one part, this research proposal may focus on finding out the research questions related to logistics plans to develop the cocoa sector. On the other hand, the perspective may be to do in-depth analysis of more such research questions related to what government steps regarding development of logistics of cocoa sector can be undertaken (Anthonio, & Aikins, 2009).
Transportation Problems in Cameroon Cocoa Sector
Research philosophy enables to research conductors to make decision regarding which approach is appropriate to continue the research proposal. The intrinsic elements of epistemology decide the method and strategy of research. The elements are Positivism, Interpretivism, and realism. Generally, the research related to business, humanities, social science and business follow positivist and interpretivist approach with a realist approaches (Hutchins, Tamargo, Bailey, & Kim, 2015). This research proposal focuses on the elaboration of challenges to logistic management faced by cocoa sector in Cameroon. The researcher emphases on the combination of positivism and realism. The research proposal adopts positivism to observe the social reality and its outcome associated with lives of small farmers who produce cocoa. Another philosophy applied to research questions can be realism which can analyze the scientific inquiry focusing on reality of projects to be executed in regards to improve the logistics management of cocoa industry (Singh, 2015).
Research approach is a crucial part of any research area. Mainly, among the two research approaches named as Deductive research approach and Inductive approach. Deductive approach works on the challenges of cocoa industry from general to specific. If the statement follows from logic to axioms, it tend is true. The deductive theory begin with a hypothesis to tests a theory whereas, the inductive method starts with observations of nature of problem, goal of finding the solution whereas inductive approach focuses on generation of new idea emerged from data. The research of challenges faced by cocoa sector in regard to logistic management follows inductive research approach. Through inductive approach, the approach necessitates the beginning of new idea based on challenges faced by the logistic management of cocoa industry and risks associated with cocoa sector (Gabriel, 2013). To analyze the data, a quantitative and qualitative approaches will be used to review, analyze, measure and evaluate the impact far technology and government.
Conclusion
With the increasing demand of chocolate bakeries and confectionaries, the government and various private institutions are encouraged to develop and improve the infrastructure to boost their trade. This research proposal suggests to continue the research by using inductive approach as a research approach. The research will use quantitative and qualitative approaches. To base the qualitative approach, a review of literature has been undertaken and to justify the quantitative approach, a researcher will undertake graphs and case studies related to situation of logistics in the sector. Introduction of modern technology for cultivation of cocoa product will help the farmers to enhance and increase their limited access to technology, education and finance. The research proposal considers the challenges faced by cocoa sector were undertaken to analyze the research questions through review of literature.
References
Anthonio, D. C. & Aikins, E. D. (2009). Reforming Ghana`s cocoa sector: an evaluation of private participation in marketing. Retrieved from: https://www.diva-portal.org/smash/get/diva2:1021865/FULLTEXT01.pdf
Drum Commodities (2012). An Introduction to the Cameroon Cocoa Industry. Retrieved from: https://www.erm-academy.org/publication/risk-management-article/main-risks-cocoa-sector-cameroon
Edith, L. K. (2018). Main Risks in Cocoa Sector of Cameroon. Retrieved from: https://www.drumcommodities.com/sites/default/files/May%202012_Cameroon%20Cocoa%20Industry_0.pdf
Folefack, A. J. J., (2016). Descriptive and logistic regression approaches for analyzing the factors affecting the adoption of cocoa agro forests by farmers in the Centre region of Cameroon. Russian Journal of Agricultural and Socio-Economic Sciences, 53(5).
Gabriel, D. (2013). Inductive and deductive approaches to research. Retrieved from: https://deborahgabriel.com/2013/03/17/inductive-and-deductive-approaches-to-research/
Hutchins, A., Tamargo, A., Bailey, C., & Kim, Y. (2015). Assessment of Climate Change Impacts on Cocoa Production and Approaches to Adaptation and Mitigation: A Contextual View of Ghana and Costa Rica. Retrieved from: https://elliott.gwu.edu/sites/g/files/zaxdzs2141/f/World%20Cocoa%20Foundation.pdf
Mbella, M. F., & Fonjong, L. (2018). Challenges to Effective Rural-Urban Linkages in Meme Division of Cameroon. Journal of Asian Scientific Research, 8(2), 42.
Mukete, N., Li, Z., Beckline, M., & Patricia, B. (2018). Cocoa production in Cameroon: a socioeconomic and technical efficiency perspective. International Journal of Agricultural Economics, 3(1).
Njinyah, S. Z. (2018). The effectiveness of government policies for export promotion on the export performance of SMEs Cocoa exporters in Cameroon. International Marketing Review, 35(1), 164-185.
Pearson, M. (2015). Transport and Logistics Sector: Africans Investing in Africa (pp. 289-308). Palgrave Macmillan: London.
Quartey, T. E. (2013). The Role of Parasternal Institutions in the Agricultural Sector: The Case of Ghana Cocoa Board”. Retrieved from: https://unctad.org/meetings/en/Presentation/SUC_GCF2013_18-03-2013_Ebenezer-TEI-QUARTEY.pdf
Singh, K. D. (2015). Creating your own qualitative research approach: Selecting, integrating and operationalizing philosophy, methodology and methods. Vision, 19(2), 132-146.
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