Effects of Collective Marketing by Farmers' Organizations on Cocoa Farmer's Price in Cameroon

This study aims to evaluate the effects of collective marketing by farmers' organizations (FOs) on cocoa farmer’s price in Cameroon. This is done through the quasi-experimental method, which uses the techniques of “Propensity Score Matching”. The data used comes from the 2006 International Institute of Tropical Agriculture (IITA) cocoa baseline survey conducted between March 15 and April 15, 2006 and involved 601 cocoa farmers from the Centre region of Cameroon during the 2005/2006 season. The results show that collective marketing has a positive and statistically significant effect on the net price received by farmers. This effect is estimated at 334 FCFA per kilogramme of cocoa sold collectively; that means a 6% increase on the individual sale price. The main recommendation is to promote the development of FOs and collective marketing within them. The development of FOs requires a government policy to support their creation, and by extension, the effects of collective sales. The development of collective marketing can be done through the creation of credit systems by FOs to attract farmers who sell to individual buyers under the constraint of credit received. This would significantly increase the share of supply captured by FOs.