Research Report: Logistics Challenges in Cameroon's Cocoa Sector

This report investigates the logistics challenges within Cameroon's cocoa sector, a significant contributor to the country's economy. It identifies key research questions related to risks, logistics management, and underdevelopment in the sector. The literature review highlights issues such as insufficient government support, price fluctuations, production risks, and transportation problems due to inadequate infrastructure and corruption. The research methodology employs a combination of positivism and realism philosophies with an inductive approach, utilizing both quantitative and qualitative data analysis. The report concludes by emphasizing the need for infrastructure development, technology adoption, and improved access to education and finance for farmers to enhance cocoa production and trade in Cameroon. Desklib offers access to similar reports and solved assignments for students.

OPERATIONS MANAGEMENT
AND LOGISTICS

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Contents
Introduction...............................................................................................................................................2
Research Questions...................................................................................................................................2
Literature review.......................................................................................................................................3
Research methodology..............................................................................................................................5
Introduction...........................................................................................................................................5
Research philosophy..............................................................................................................................6
Research approach................................................................................................................................6
Conclusion..................................................................................................................................................8
References..................................................................................................................................................9

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Introduction
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.
Research Questions
To achieve the main objective of the research, following research questions will be
undertaken-
1. What are the main risks in Cocoa Sector of Cameroon?
2. What are the challenges faced by cocoa sector regarding managing the logistics in
Cameroon?
3. Why did cocoa sector remain underdeveloped in the Cameroon?

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Literature review
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

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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.
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.

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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.
Research methodology
Introduction
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).

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Research philosophy
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
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

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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.

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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.

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References
Anthonio, D. C. & Aikins, E. D. (2009). Reforming Ghana`s cocoa sector: an evaluation of
private participation in marketing. Retrieved from:
http://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:
http://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:
http://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.

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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:
http://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.