Cocoa prices at farm-gate in Cameroon fell from recent highs in early March, farmers said on Tuesday, though they were still well above previous seasons. Prices in the worlds fifth-biggest grower peaked in February as main crop supplies dried up and world markets hovered near highs, but have since fallen slightly.
In Kumba, the main cocoa trading centre in the top cocoa province, South-West, prices fell to around 1,000 CFA francs ($1.98) per kg from last months level of 1,200 francs per kg. "Although farmers complain the price has dropped, the level remains high for them this year compared to the three previous seasons," said Michael Ndoping, General Manager of the National Cocoa and Coffee Board (NCCB).
Prices within Cameroon have broadly tracked those on international markets. Benchmark cocoa futures for delivery in May rose to more than 2,000 pounds ($2,812) per tonne in late January, and though they have since fallen back to trade at 1,857 pounds per tonne in London on Tuesday, are still 5 percent up from the start of the year.
Cocoa has resisted the sharp falls experienced by other commodities as the global financial crisis slashes asset prices, but analysts say demand may fall as consumer spending slows. Worries about poor harvests from nearby Ivory Coast, the worlds number one grower, were instrumental in supporting cocoa prices in late 2008 and early 2009, but more recently farmers there have expressed optimism that the April-September crop will partially compensate for a disappointing start.
Within Cameron, the lowest prices was recorded in the East region, with cocoa changing hands at 700-750 CFA francs per kg in Bertoua, down from 850-900 CFA francs last month. Emmanuel Nguile, a farmer in Bafia in the Centre region, said he expected prices to remain resilient for the near future.
"What is happening now is just normal market trends, with periods of lows and highs. The global crunch may in the long run affect the cocoa sector, but it is not the case now," he said. Cameroon is the worlds fifth biggest cocoa producer, with production peaking at 187,355 tonnes in the 2007/08 season.
The country also exported 162,220 tonnes of cocoa beans the same year, up from 157,378 tonnes the previous season. The cocoa season in the Central African country runs from August 1 to July 31, with the main crop harvest from November to February and the mid-crop harvest from late April to early July.