Agroforestry Systems 51: 177–188, 2001.

 2001 Kluwer Academic Publishers. Printed in the Netherlands.

Smallholder Cacao (Theobroma cacao Linn.) cultivation in

agroforestry systems of West and Central Africa: challenges
and opportunities

B. Duguma1, *, J. Gockowski2 & J. Bakala3

1
International Center for Research in Agroforestry (ICRAF), IRAD/ICRAF Humid Lowlands of West Africa
Research Program (HULWA), P.O. Box., 2067 (Messa), Yaoundé, Cameroon; 2 International Institute of
Tropical Agriculture (IITA), IITA-HFS, P.O. Box, 2008 (Messa), Yaoundé, Cameroon; 3 Institute of
Agricultural Research for Development (IRAD), P.O. Box, 2123 (Messa), Yaoundé, Cameroon (*Author for
correspondence: USAID/AFR/SD, 1325 G St. N.W., Suite #400, Washington, DC 20005; E-mail:
[email protected])

Received 30 December 1998; accepted in revised form 30 March 2000

Key words: biodiversity, environment, humid lowland forest, natural resources

Abstract

The cultural features, management practice, environmental sustainability, and economic profitability of
smallholder cacao (Theobroma cacao) production in West and Central Africa are reviewed. The aim is
to highlight factors affecting the cacao production and marketing sector and to propose appropriate
strategies to ensure sustainable and profitable cacao production in the region. The cacao cultivation system
causes minimum damage to soil resources. In terms of carbon sequestration and below- and above-ground
bio-diversity, the cacao agroforest is superior to the alternative food crop production land use. The food
crop production system is based on the practice of slash-and-burn farming, which, due to population
pressure and reduced fallow cycle, is no longer sustainable. Economic profitability analysis of this system
in Cameroon showed that, at current prices, even with no value assigned to the tree species, the sector
could still be profitable. Based on the current review and our knowledge of West and Central Africa, there
is an urgent need to: (a) rationalize and optimize arrangement of the various components in cacao
agroforest, (b) domesticate high value and shade tolerant indigenous species such as Gnetum africanum
and integrate into the system in order to enhance the system’s diversity and profitability, (c) develop shade-
tolerant and disease-resistant cacao varieties, (d) integrate small-stock production into the system, and (e)
develop an enabling policy environment addressing cacao marketing, plant protection, land tenure and
transformation of non-cacao primary products from the cacao agroforests.

Introduction duction from the four largest producing countries

of Africa (Côte d’Ivoire, Ghana, Nigeria, Cameroon,
In the humid west and central Africa, cacao and Togo) accounted for 65% of the global output
(Theobroma cacao Linn.) is one of the most (ICCO 1997). Compared to other agricultural
important cash crops and it is grown largely activities, cacao has been a leading sub-sector in
(> 80%) by the small-scale farmers. In 1900, the economic growth and develop- ment of these
Africa’s share of the total world cacao production countries.
was a mere 17%. However, by 1996, total pro- However, since the late 1980s, the cacao sector
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has been subjected to several major economic and timber tree species (e.g., groundnut tree
shocks that have led to new institutional and orga- (Ricinodendron heudelotii), cola (Cola nitida),
nizational frameworks. This was particularly the voacanga (Voacanga africana), ayous or obeche
case in countries such as Cameroon and Côte (Triplochiton sclerozylon), fraké (Terminalia
d’Ivoire whose economies depended heavily on superba), african mahogany or acajou rouge
the cacao sector. The drastic fall in world prices (Khaya ivorensis)) are deliberately retained both
of cacao and other commodities at the time for their economic value and to provide shade for
contributed to substantial domestic economic the cacao plant. The clearing is done manually
problems in both countries. Cacao farmers and (with the exception of the use of chain saw to fell
many state employees who lost their jobs or faced big trees) which together with the no-tillage
with salary cuts responded to the crisis by method used when planting, causes minimum or
increasing their activity in food crop production no disturbance to the fragile soils.
to compensate for the lost income. This in turn led In Cameroon, the recently-cleared fields are
to a very significant increase in forest clearing initially planted with a mixture of egussi melon
with its attendant profound negative environ- (Cucumeropsis manii) and maize (Zea mays). C.
mental, economic and political consequences. manii, a very important food crop (used as condi-
Despite these problems, cacao production in 1996 ment) in west Africa, is a climber that grows
from Côte d’Ivoire, Ghana, Nigeria, Cameroon, around the unburned logs thus conserving
and Togo still accounted for 65% of the global moisture, increasing humidity and accelerating the
output (ICCO 1997). process of wood decomposition. After harvesting the
Technically, there are ample evidence to show food crops, cacao is inter-planted with maize,
that cacao cultivation in agroforestry systems in the plantain (Musa spp. AAA), cassava (Manihot utilis-
humid West and Central Africa is environ- mentally sima) and other food crops during the second
sustainable. At the 1997 prices, enter- prise budgets cropping season. Inter-cropping with the food crop
show that these systems are again economically is done to exploit the fertile soil and to increase
profitable unlike in recent years. In order to sustain shade for the cacao seedlings. The cacao is left to
farmer’s interest and promote the practice of develop as farmers harvest the seasonal and annual
sustainable cacao agroforests therefore, deliberate crops.
and systematic harmonization of economic policies Depending on the density of the retained natural
affecting the sector and improved management tree species and mortality rate of the cacao
system through participa- tory application of seedlings, the system is enriched by planting addi-
indigenous knowledge and scientific principles is tional tree crops, such as mango (Mangifera
critical. This paper reviews major attributes of the indica), African plum (Dacryodes edulis), avocado
existing cacao agroforestry systems, associated (Persea americanum), guava (Psidium guajava),
economic and ecological opportunities and cola (Cola nitida), orange (Citrus sinensis), and
challenges and concludes by offering some mandarin (Citrus reticula). Successful inter-
suggestions on research needs and management cropping of cacao with coconut (Cocos nucifera)
strategies to promote sustainable cacao production (Ramadasan et al. 1978) oil palm (Elaeis
in the region. guineensis) (Amoah et al. 1995), and rubber
(Hevea brasiliensis) (Egbe and Adenikinju 1990)
is also well documented. As the cacao tree and the
Cultural practices and inter-cropping other components grow to maturity, the agroforest
becomes a more diverse and structurally complex,
The dominant cultural practice of cacao cultiva- closed-canopy multi-strata system that resembles
tion in the humid west and central Africa involves natural forest. In effect, this represents the passage
planting cacao trees in secondary forest or forest of the agro ecosystem towards a mature or climax
fallow, selectively cleared and planted to various state and is associated with many of the positive
types of food crops for one or two seasons attributes of natural climax forests.
(Duguma et al. 1990; Duguma and Franzel 1996). Several people have reported that there is great
When land is cleared, indigenous fruit, medicinal, potential to further diversify and enhance the
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productivity and environmental resilience of these responsible for such loss, black pod (Phytophthora
tree-based cropping systems, including the cacao species) is the most important (Bakala 1981).
agroforests in the region (Duguma et al. 1990; Similarly, several insects are reported to attack
Leakey 1998). However, most of the indigenous different parts of the plant at different stages of
and exotic tree species grown in these systems are development. In West Africa, the insects of the
unimproved genetically and there has been little family Miridae, also known as capsids, are the
systematic research effort to genetically improve most important and widely represented insect pest
the product quality and quantity, or to identify of cacao (Bakala and Kone 1998).
pest- and disease-resistant strains of the tree Depending on the prevailing climatic conditions
species. Indeed, many of the indigenous species in a given area, chemicals, cultural practice or
have not been successfully propagated artificially, biological control methods can be used to control
even by research. There is therefore the need to cacao pests and diseases. Enhancing air circula-
address the selection, cultivation and other related tion through regular weeding and pruning,
issues to domesticate these species in order to ensuring there is adequate drainage, and removing
make cacao production more attractive to farmers. pod husks immediately after harvesting and
extracting the beans are some of the cultural prac-
tices that are recommended (Maddison and Griffin
Management requirement 1981). Copper-based fungicides are reported to be
very effective for controlling Phytophtora pod rot
The major management requirements of cacao (Bakala and Kone 1998).
agroforests are shade control, weeding, pest and Cacao farmers in west and central Africa have
disease control, harvesting of pods and processing typically received subsidies and state support to
of beans (Wessel 1987). According to Wessel control pests and disease. Until the early 1990s,
(1987), the role of shade in the management of the Cameroon government provided farmers with
cacao agroforest is rather complex as it impacts fungicides at no cost and treated their plantations
on several other growth factors. For example, it with insecticides. The cost for the service was
reduces light intensity, temperature, air movement recovered through a state-controlled cacao mar-
and relative humidity, which all indirectly affect keting system. Following the fall in price and
photosynthesis and the incidence of pests and subsequent liberalization of the marketing sector,
diseases. Several reports suggest that optimal the government discontinued the service. In the
growth and productivity is promoted by a level of depressed cacao markets, farmers were unwilling
shading that allows 20 to 30% of full light to reach to pay for inputs or, if they were willing, they had
the cacao (Okali and Owusu 1975). It should be difficulty finding private suppliers. Consequently,
noted however, that depending on the age of the the cacao production suffered from neglect and, in
cacao tree, there could be a significant variation some cases, was abandoned (Losch et al. 1990).
in the level of shade required. This may vary from When devaluation of the local currency (FCFA)
place to place and even from provenance to prove- occurred in 1994, the weak institutional develop-
nance of the cacao trees. Farmers in West Africa ment of privatized input market liberalized in 1992
are quite familiar with the importance of shade in inhibited a strong supply response. This is in
cacao cultivation, but they receive little assistance, contrast to Côte d’Ivoire where current production
if any, on how to optimize shade at various stages of 1.1 million tons is double the level in 1993.
of the plant development. This strongly suggests that developing cost effec-
The most severe problem faced by cacao tive and environmentally sustainable integrated
farmers in the region is the occurrence of pests and pest and disease management is a strategy likely
diseases. At a global level, yield loss due to to promote cacao agroforests. Equally important
disease is estimated at about 30% (Padwick 1956). is the need to minimize risk to farmers’ of crop
In west Africa, it ranges from 10 to 80%, 10 to failure at times of drastic institutional changes and
30% in Côte d’Ivoire, 30 to 50% in Ghana and fall in commodity price.
Togo, and 50 to 80% in Cameroon (Bakala and
Kone 1998). Among the several diseases that are
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Bio-physical attributes and environmental mentally sustainable for up to 50 years, at a level

implications comparable to long-term fallow or primary forest.
This likely advantage of a perennial approach to
Out of the fifteen million hectares of the world’s cropping is being examined by a global program,
primary forest that is destroyed each year, the which arose out of the concern raised by Agenda
practice of shifting cultivation is reported to 21. This program, known as ‘Alternatives to slash-
account for over 60% (FAO 1997). To contain the and-burn’ (ASB) and operational in Cameroon
problem, protectionist policies such as establishing since 1995, characterized and evaluated environ-
forest reserves or national parks were promoted mental parameters in various land use systems,
until the 1980s. However, at the Earth Summit in including the cacao agroforests. Its aim is to take
Rio de Janeiro, held in 1992, world leaders stock of the environmental dimensions of various
recognized the need to complement protectionist land use systems with a view to identifying or
policies with a focus on rational response to developing long-term best-bet alternatives. The
human needs as well. This was reflected in two best bets are compared with natural forest, in
statements in Agenda 21, which identified the which plant nutrients are tied up in the above- and
need ‘to limit and aim to halt destructive shifting below-ground vegetation, litter and thin layer (0
cultivation by addressing the underlying social and to 20 cm) of topsoil and recycled in a closed
ecological causes’ and to ‘reduce damage to forest energy system. Cacao agroforests, unlike the
by promoting sustainable management of areas annual crop fields, are probably similar to natural
adjacent to the forest’. forest in this way.
Food crop production based on the practice of One of the parameters measured by the ASB
slash-and-burn or shifting cultivation and tree Program was total vegetation biomass in primary
based cropping or agroforests are the two forest, food crop fields, short- to long-term fallow
dominant land use systems in West and Central (land left idle for five to 10 years after one or two
Africa (Duguma et al. 1990; Duguma and Franzel cropping cycles to naturally regenerate soil fer-
1996). The practice of slash-and-burn farming to tility), and cacao agroforest. The result showed
open up land for food crop cultivation destroys the that total biomass in cacao agroforest (304 t ha–1)
vegetation and exposes the soil to harsh climatic was much greater than that in the food crop fields
factors (intense solar radiation and heavy rain- (85 t ha–1), and ranked third after the biomass in
drops), thus leading to disruption of the closed primary forest (541 t ha–1) and long-term fallow
nutrient cycle. Burning the vegetation after clear (460 t ha–1) (Table 1). Comparative assessment of
felling increases both soil and air temperature selected top soil nutrients in secondary forest and
resulting in significant changes in soil biological cacao-dominated tree-based home gardens of
activities (Nair 1984). Soon after burning, southern Cameroon also showed that soil pH,
exchangeable base, available phosphorus, organic organic matter, calcium and magnesium are
matter, and soil pH values increase temporarily greatest in cacao agroforest compared to that
and benefit the 1st or 2nd crop considerably in secondary forest (Table 2). According to Kotto-
(Sanchez and Salinas 1981; Nair 1984). In subse- Same et al. (1997), cacao agroforest contained
quent years however, crop yields decline drasti- 62% of the carbon stock found in primary forest.
cally due to soil fertility depletion, increased weed Above-ground plant bio-diversity and below-
infestation, deterioration of soil physical proper- ground micro-fauna in the cacao agroforests are
ties and increased insect and disease attack (Nair also reported to be greater than that in crop fields,
1984). These are the main reasons why the farmers comparable to those in short- and mid-term fallow
crop an area of newly opened forestland for only and 2nd to that in primary forest (IRAD 1997;
two or three seasons before returning it to fallow Zapfac, personal communication). ASB studies
(ranging from three to > 20 years). conducted in Sumatra, Indonesia showed that, by
By contrast, cacao agroforests, in which the comparison with natural forest, biodiversity levels
process begins with partial clearing and burning in rubber and damar resin agroforests reach 50%
and involves cultivation of cacao and other tree for plants (30% for trees, 50% for treelets and
crops, probably remain productive and environ- epiphytes, 50 to 95% for lianas and 100% for
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Table 1. Total vegetation biomass (t ha –1) in various land use systems in Mekoe, southern Cameroon.

Land use Biomass in t ha–1

Tree Understorey Litter Root Total

Primary forest 485 2.9 8.7 44.6 541.2

Food crop field 45 7.6 – 32.7 85.3
Young fallow (< 5 Y) – 2.6 11.8 27.7 42.1
Mid fallow (5 to 10 Y) 54 4.5 14.2 34.6 107.3
Old fallow (10 to 20 Y) 400 4.3 12.3 44.2 460.7
Cacoa agroforest (26 Y) 250 1.6 11.7 41.2 304.4

Source: IRAD, 1997; Y = years.

Table 2. Selected soil properties at 0 to 20 cm depth in cacoa dominated home gardens and secondary forest in southern Cameroon.

Study site Soil properties

PH Organic matter Ca Mg K
(1:1 water:soil) (%) (Cmolc kg –1) (Cmolc kg –1) (Cmolc kg –1)

Hg Sf Hg Sf Hg Sf Hg Sf Hg Sf

Yaoundé 6.9 5.2 4.4 2.5 10.8 2.6 2.1 1.0 0.4 0.11
Mbalmayo 6.8 6.5 4.1 4.8 11.4 5.2 2.0 1.8 0.6 0.15
Ebolowa 6.5 4.8 4.7 3.2 11.8 3.0 2.5 0.9 1.4 0.15

Source: ICRAF, 1996.

Hg: Cacoa dominated home garden; Sg: Secondary forest.

understorey plants), 60% for birds and close to 100% Cameroon, despite the decline in world prices,
for soil mesofauna (ICRAF et al. 1997). cacao remains the most important cash crop in
From the above, it can be concluded that the terms of value and volume produced. In addition
cacao agroforests land use system are superior to to the export of beans, processed cacao butter and
the competing food crop production system in paste accounts for approximately 15% of the FOB
terms of most of the environmental indices and export value in the cacao sector. This can be
natural resource management parameters re- compared to robusta coffee, whose export repre-
viewed. Its full benefit can, however, be realized sents almost no added value (UNCTAD 1995).
only if it remains to be economically attractive to From 1996 to 1997, the ASB program in
the smallholder farmers. This will require a sig- Cameroon evaluated the effects of economic and
nificant improvement in local management and political impacts on smallholder cacao production
economic policies for optimum result. in southern Cameroon (Gockowski et al. 1997).
This study found that from Independence in 1960
until 1991, cacao marketing was subjected to
Socioeconomic and policy features of small heavy state involvement administered through the
holder cacao with particular reference to dictates of the Office National de Commercal-
Cameroon isation des Prodits de Base (ONCPB). National
producer prices and fixed marketing margins (le
Government interventions in the cacao sector have bareme) were determined annually by the ONCPB.
been numerous across west Africa. In recent years Licensed agents were given exclusive buying
however, at the bequest of the World Bank and the rights on a regional basis. On average, from 1961
International Monetary Fund (IMF), many gov- until 1988, the official producer price was only
ernments have loosened controls on the sector. In 50% of the FOB price (Gockowiski et al. 1994).
182

In years when the world market was character- The purpose was to promote bulk marketing. The
ized by low prices, the difference between the reform that enabled the formation of these GICs
fixed marketing margins plus the official produce has been relatively successful and it has helped
price and the FOB price was, in principle, paid to lower assembly and transaction costs and to
into the stabilization fund for supporting cacao increase the price paid to producers who are
prices. The fund was also used to finance imports members.
of chemicals to control pests and diseases. Up In 1998, six years after liberalization, adjust-
until the early 1990s, the chemicals were distrib- ment costs were still occurring. Many producers,
uted either free, or at heavily subsidized prices who used to rely on state-sponsored pest and
through the extension service of the Ministry of disease control, have failed to treat their cacao. If
Agriculture. left uncontrolled, this failure can seriously erode
World prices weakened in 1987 and remained the productive potential of a cacao agroforest.
depressed through mid 1990s. Consequently, the Furthermore, in addition to the adjustment costs,
reserves of the cacao stabilization fund that had the sector is still subject to a 13% export tax, while
been used as a source of financing various state fertilizer and pesticide imports are subject to a
enterprises and parastatals outside the cacao sector 6.5% tariff duty. As a result of all the above, both
were limited. Hence, in September 1989 the the quality and the quantity of cacao produced by
official price of cacao was slashed from 420 FCFA smallholders in Cameroon have stagnated since
to 250 FCFA kg–1. With the Cameroon economy mid-1980s. Cameroon cacao, which once received
in its worst crisis since Independence, the gov- a quality premium on world market, is now dis-
ernment began negotiating a structural adjustment counted because of this deterioration. However, in
package with the World Bank and the IMF 1997, world cacao prices have improved
in 1988. One of the conditions of the package was somewhat (producer prices varied between 600
the dissolution of the ONCPB, with its 2,800 and 700 FCFA) and for the first time in quite
employees. It was replaced by the Office National awhile, farmers are again considering that cacao
de Cacao et Café (ONCC) with a staff of 157 and growing can be a profitable activity.
a strictly regulatory mandate (Gockowski 1994). The conclusion from this study is that any strategy
Meanwhile, as a result of the persistent weak aimed at promoting the concept of sus- tainable
world market price of cacao and an over valued cacao needs to be holistic in approach. Similarly,
currency, producer price continued to deteriorate. local and international policies and economic
Consequently, the distribution of fungicides and factors must be given equal attention with technical
insecticides by the state agents of the Societé de or management feasibility.
Devéloppement du Cacao (SODECAO) ended in
1992.
Unlike the gradual phase out of fertilizer sub- Economic profitability and sustainability of
sidies (fertilizers are used mainly by coffee pro- smallholder cacao production in Cameroon
ducers) and the financial support given to private
fertilizer suppliers, the liberalization of pesticides It is estimated that there are over 400,000 house-
was abrupt. Consequently farmers now have a holds producing cacao in Cameroon (Losch et al.
very difficult time procuring fungicides or pesti- 1990). With the low world prices prevailing over
cides under the new liberal regime. This combined the past 10 years (see Figure 1), the economic sus-
with low producer prices through 1996 turned tainability of the system has been in serious
many producers to alternative sources of agricul- question. Because of the importance of the cacao
tural revenue, such as food crop production using sector on one hand, and the recent depressed world
the slash-and-burn or shifting cultivation tech- cacao market on the other, the current economic
niques. At the same time as the liberalization was sustainability of cacao agroforests was evaluated to
sweeping the marketing side of the cacao sector, determine if it is a viable alternative to slash- and-
producers were encouraged by government and burn agriculture. Profitability analysis of cacao
non-governmental organizations to organize them- production was conducted for three pro- duction
selves into ‘common initiative groups’ (GICs). systems (representing different circum-
 183

mated for all systems. Management intensity and

the possibility of commercializing secondary fruit
products distinguish the three systems that follow:
1. Low input system with commercial fruit tree
production. Cacao management practices for
this system are typical of the extensive small-
holder agroforest. Locally available land race
cacao varieties (Forastero) are used. The only
purchased input is a metalaxyl-copper fungicide
applied four times per year. From nine to 26
years the average cacao yield is assumed to be
264 kg ha–1. No commercial control of capsid
is considered. This is a multi-product commer-
cial system that includes associated fruit trees.
Contributing to financial returns besides cacao
Source: ICCO, 1997 are mandarin, avocado, African plum, and
mango each at a density of 4 trees ha–1. Age-
Figure 1. Nominal average cacao price on the New York yield profiles assumed for the fruit trees and
and London markets for the period 1971 to 1997.
cacao are presented in Figures 2 and 3. The
commercial marketing of the fruit tree compo-
stances of small farmers). In addition, the impact nents presumes that this system has relatively
of government policies was assessed. An ex post good linkages to urban markets. Many more
analysis of the effect of the 1994 devaluation of intensively managed cacao systems were
the FCFA on profitability of the three systems is shifted to this low intensity type of management
included in the policy analysis. The costs and regime when cacao prices fell in the late 1980s
returns from establishment to 26 years was esti- (Losch et al. 1990).

Figure 2. Age-yield profile of various fruit trees in cacao agroforest of Southern Cameroon.
184

This type of intensified system characterizes

much of the production. Together, the produc-
tion in the Lékié, Moungo, Fako and Meme
Divisions accounts for between 40 to 50% of
total national output for Cameroon (MINAGRI
annual production statistics as reported in
Losch et al. 1990). The intensified management
in these areas is often associated with high rural
population pressures.
Profitability was assessed and compared through
the use of policy analysis matrices (PAMs)
(Monke and Pearson 1989). PAMs provide a
partial equilibrium methodology for evaluating
the effects of government policies on the revenues
and costs of a given production system. It also
allows evaluation of competitiveness on world
markets.
The central concept of a PAM is the compar-
* A system with land race cacao variety in which, the only
purchased input used is metalaxyl-copper
ison of profitability measures using financial (or
** A system with hybrid cacao varieties involving increased farmer) prices which include price distortions on
use of phytopathological control input and outputs due to taxes, subsidies, non-
tariff trade barriers, and imperfectly competitive
Figure 3. Yield profile of fermented and dried cacao beans markets and economic or social prices which
by tree age, Southern Cameroon.
reflect the cost to the economy. Economic prices
are calculated as the FOB/CIF border price of
2. Low input system with no commercial fruit tree exports/imports adjusted for internal transporta-
component. Management practices and yield tion costs and misalignments of the real exchange
assumptions for cacao in this system were rate. Currently there is a 10% ad valorem tax on
identical to those used above. The main dis- cacao, a 17% turnover tax (exemptions for pesti-
tinction is that the costs of marketing inhibit cides, fertilizers and agricultural commodities) and
commercialization of fruit production and a 6.5% ad valorem import tax on pesticides and
therefore fruits are not included as a source of fertilizers.
revenue. This assumption is particularly The baseline set of results for 1997 shows that
relevant to the remote areas distant to urban all three systems earned positive financial profits
markets. (returns to land and management) at the financial
3. Medium input intensity with commercial fruit output price of 600 FCFA which prevailed in 1997
production. This system, which occurs in the (Table 3). As indicated by effective protection
Lékié Division (near Yaoundé), the Moungo coefficients (EPC) that were less than one, the
Division (near Douala), and the Fako and net effect of government policies were taxing
Meme Divisions of Southwest Province of (Table 4). The net present value point to the inten-
Cameroon (Losch et al. 1990), involves sive production system is most competitive and
selected varieties and management practices profitable on a per hectare basis.
such as pest and disease control, which are Among the three systems evaluated, the most
more intense than the typical extensive systems profitable was the medium input system with fruit
that predominate elsewhere in the country. trees at an estimated net present value of 860,066
Hybrid cacao varieties are subjected to FCFA (USD $1,490) ha–1. Contribution of fruit tree
increased phytopathological control (eight revenue in the low input system was also sub-
applications of metalxyl-copper fungicides and stantial. Sensitivity analysis on the price of cacao
two applications to control capsids). Yields of was conducted to find the breakeven price of cacao
500 kg ha–1 from nine to 26 years are assumed. (NPV = 0). For the low input system with
 185

Table 3. Policy analysis matrix of three smallholder cacoa in Cameroon, 1997.

Variants of cacoa agroforests Gross revenue Discounted costs (FCFA) of production Discount net
in FCFA present value
Tradable inputs Domestic factors Total cost

Low input with fruit trees

– Financial 1,004,223 194,496 747,721 942,190 62,032
– Economic 1,094,414 173,542 738,054 911,596 182,817
Low input with no fruit trees
– Financial 1,399,544 194,469 783,753 978,222 421,321
– Economic 1,489,735 173,542 774,177 947,629 542,105
Medium input with fruit trees
– Financial 2,105,633 411,169 834,397 1,245,566 860,066
– Economic 2,274,279 373,790 831,671 1,205,462 1,068,817

Table 4. Trade protectionism and domestic resource cost of cacoa agroforests in Cameroon for 1997 baseline and misaligned
exchange rate scenario.

Variants of cacoa agroforests Domestic resource cost ratio Effective protection coefficient

Baseline 1997 Exchange rate effect Baseline 1997 Exchange rate effect

Low input without fruit trees 0.801 0.801 0.879 0.544

Low input with fruit trees 0.588 0.558 0.915 0.681
Medium input with fruit trees 0.438 0.438 0.892 0.655

no fruit tree revenue, the breakeven price was 555 cial sustainability of cacao production in the area.
FCFA kg–1 vs. 288 FCFA kg–1 for the low input This example is illustrative of the negative impact
system with fruit trees, and 260 FCFA kg–1 for the on the financial profitability that an exchange rate
medium intensity system. From the analysis, we misalignment can have.
can conclude that the low input system without There have been recent suggestion that there
fruit tree diversification was the least profitable may be another possible currency devaluation as
at current prices and would have earned losses Europe moves towards a common European
from 1994 to 1996, when prices were in the range currency. Downward pressure on the FCFA is also
of 350–450 FCFA kg–1. a likely result of the recent depreciation of cur-
The study also examined the impact of a mis- rencies in Southeast Asia. Many of these countries
alignment (over appreciation) of the exchange are major competitors with west and central Africa
rate. This was considered to be the situation in the in world cacao, robusta coffee, tropical timbers,
early 1990s, before the devaluation of the franc natural rubber, and oil palm markets. If Asian
CFA in January 1994. Under this scenario, where currencies remain at their current levels, the FCFA
we assume that the currency is over appreciated and other currencies of the region may have to
by 50%, economic prices are unchanged. In all adjust in order to maintain competitiveness.
cases the financial profitability declines signifi-
cantly and the low input system without fruit trees
earns negative financial profits (Table 5). The Discussion and conclusions
EPCs all decreased substantially underlining the
increase in the implicit taxation of export pro- From the environmental perspective, the above
ducers which occurs as exchange rates are allowed review suggests that a cacao agroforest is a better
to get out of line (Table 4). We conclude that the land use system compared to the slash-and-burn
50% devaluation substantially improved the finan- based cropping for the sole purpose of seasonal
186

Table 5. Policy analysis matrix of Cameroon smallholder cacoa systems under the assumption of a 50% real exchange rate over
appreciation.

Variants of cacoa agroforest Gross revenue Discounted costs of production Discount net
present value
Tradable inputs Domestic factors Total cost

Low input without fruit trees

– Financial prices 598,361 97,235 747,721 844,956 –246,594
– Economic prices 1,094,414 173,542 738,054 911,596 182,817
Low input with fruit trees
– Financial prices 993,682 97,235 783,753 880,988 112,694
– Economic prices 1,489,735 173,542 774,177 947,629 542,105
Medium input with fruit trees
– Financial prices 1,503,446 204,333 933,827 1,138,160 365,286
– Economic prices 2,274,279 373,790 831,671 1,205,462 1,068,817

or annual food crop production. The initial land Likewise, the budgets do not account for the
clearing and preparation causes minimal, if any, important role of these plantations in the local
damage to the soil resources. It also offers the pharmacopoeia. Trees such as Alstonia boone,
opportunity to integrate several woody and non- whose bark is used in the treatment of malaria, are
woody crop species, and has a greater in-situ plant common constituents of these agroforests. This
biodiversity conservation potential. Staple food source of forest products is especially important
crop production involves the rotation of cropping in areas where the natural forest no longer exists.
fields thus requires a large area for agriculture, at One of the most significant conclusions of the
the expense of the forest. Cacao agroforests, on economic profitability analysis is that the role of
the other hand, is a semi-permanent or permanent fruit tree production in these cacao plantations is
yet economically sustainable and profitable. This very important for their economic sustainability
sustainability can last indefinitely, as a result of and stability. The breakeven sensitivity analysis
the periodic renewal of the components of the on the price of cacao over the three systems
system, with better consequent protection of, and modeled here, illustrates this clearly. Analysis of
improvement in, soil organisms or below ground a possible devaluation showed that cacao farmers
biodiversity over time. were much better off after a currency devaluation
The economic profitability analysis illustrates than they had been before, contrary to the
that cacao agroforests are profitable under all the argument sometimes made that their welfare is
scenarios considered, even when several other unchanged because input prices rise along with
important products were not included in the output prices. Tradable inputs represent only about
analysis. In estimating the value and economic 25% of total costs (the rest consisting mainly of
profitability of cacao agroforests with other added labor) and therefore the increase in costs is con-
trees, only the conventional fruit tree species, such siderably less than the increase in output revenue
as citrus and mango, were included. Thus, the from tradable resource or products.
value of many of the products (e.g., indigenous The result of economic policy analysis also
timber, medicinal, fruit and other foods) and the showed that, in the scenarios studied, total level of
important ecological and environmental functions taxation is not large and has fallen significantly
of the many trees in the shade providing upper from the days of official producer prices, when the
canopy, have not been captured by these budgets. nominal protection coefficient on output was
Lumber from trees in cacao plantations is around 0.60. Nonetheless, further reductions in the
commonly used for local construction purpose and level of taxation could still generate significant
is a particularly important and valuable resource revenues for cacao producers and would serve to
in areas where the natural forest no longer exists. ensure the economic, ecological and environ-
 187

mental role of these systems in the landscape of tree crops in experimental stations in humid
southern Cameroon. tropics of Côte d’Ivoir and Ghana (Mack 1989;
The negative impact on farmers welfare, the Fianu et al. 1994), and it could also be consid-
national economy and the regions most treasured ered to further intensify the cacao agroforests.
natural resource – the rain forest – of the govern- However, this would have to be implemented in a
ment’s control on production and marketing of way that prevent the degradation of the natural
cacao, as well as of the erratic world market price resource base.
was well demonstrated by what happened in the Finally, regarding the cacao trees themselves,
region between 1985 and 1996. However, not all there may be a need to reorient the breeding
the impacts were negative. To some extent, the program for the development of disease resistant
steps taken to minimize the impact, though rather and shade-tolerant varieties. These are perhaps
slow, has been very encouraging. On the part of necessary to further reduce management and main-
the government, minimizing control by allowing tenance costs of the system and so to make it
the farmers to organize themselves in groups in economically more attractive to farmers.
order to market their products was a significant Alternatively, it is possible that diversification of
and positive step. Nevertheless, safe guards were the production system and its enhanced ecological
needed, to ensure that the better-organized group function is more appropriate since agroforests
– the exporters – will not dictate the price represent a form of integrated pest management.
unilaterally to the disadvantage of the producers. Farmers adopted the cacao agroforestry system on
There is, however, potential to further enrich their own with little or no input from research
these agroforests and to enhance their profitability institutes. While researchers have much to learn
and potential to alleviate poverty. Most of the about these complex systems from farmers, an
trees, whether exotic or indigenous, managed in area of potential research that could improve the
the cacao agroforests are wild or undomesticated productivity of the cacao agroforests might be the
land races, and were not selected on the basis of rationalization and optimal configuration of the
their genetic quality. In order to intensify produc- components and their spacing.
tion and improve profitability of the system and
thus promote overall sustainable production, there
is a need for genetic improvement research on Acknowledgements
almost all the products from the array of associ- ated
The authors would like to thank Drs A. Adesina,
tree species. There are several high value fruit and
E. Ayuk, O. Ndoye, Z. Tchoundjeu, J. Tonye, Mr
medicinal tree species in the humid forests of the
P. Tonje and Mrs D. Lodoen for assistance in the
region that are currently unimproved, being
review of the draft of this paper and for insightful
exploited only from the wild. These species are
comments.
reported to have tremendous potential for domes-
tication and inclusion in the cacao-based and
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