Cameroon Plans to Double Local Cocoa Processing

By Emmanuel Tumanjong

Special to DOW JONES NEWSWIRES

YAOUNDÉ, Cameroon--The government will provide funding to build more cocoa-processing factories as part of a plan to more than double local processing and increase value.

"Our scheme is focused on processing 70,000 tons of cocoa beans yearly. So, we'll be investing 3.2 billion Central African francs [$5.8 million] for new factories that will join existing ones," said Bruno Ntakeu, director in charge of the transformation of raw materials in the Ministry of Trade.

Cameroon presently processes around 32,000 tons of cocoa beans a year into cocoa powder and butter, about 15% of the total crop, according to government and industrial statistics. The two main processors in Cameroon are Swiss chocolate maker Barry Callebaut AG (BARN.EB) and South Africa's Tiger Brand (TBS.JO).

"This project is aimed at adding value to our cocoa, instead of selling unprocessed cocoa that offers very little benefit," the official said. Mr. Ntakeu said the new factories will process an extra 36,000 tons of cocoa beans a year.

Cameroon's cocoa output slipped to 209,905 tons in the 2013-14 season [August-July] from 228,911 tons in the previous season. The country exported 158,311 tons of cocoa beans in 2013-14, down from 201,563 tons, according to official data. The cocoa season officially runs from August until the following July.

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