Economics of Banana Production and Marketing in the Tropics
264 Pages
English
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Economics of Banana Production and Marketing in the Tropics

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264 Pages
English

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In most African countries, banana production has been consigned to subsistence production. However, a few countries, especially in Francophone West Africa, have recognised the commercial importance of banana, and have used their special relationship with France to export bananas. This has led to the dualization of the banana sector, with the traditional system existing side by side with a modern sector geared towards export trade. This book is one of the few comprehensive studies that have incorporated both the agronomic and economic aspects of banana production and marketing in Africa. It looks at all facets of banana production, from an historical perspective to the various traditional and modern technologies involved. The marketing aspect covers both the domestic and international trade, with emphasis on the preferential (ACP / DOM Lome Convention) and the open markets of the European Union. The book is a major contribution to understanding the internationalisation of the banana trade and to its ever-increasing investment portfolio, as the backbone of many a developing tropical economy. Although the emphasis is placed on Cameroon, other relevant African, tropical and subtropical banana-producing countries are mentioned where necessary, especially in the export sector where a degree of competition existed. Further, agricultural practices, soils, meteorological and climatological characteristics, pests and diseases, personnel and banana varieties grown, mean that findings in Cameroon are of relevance to other banana-producing countries, especially in Africa. Meanwhile, other African and tropical countries still contemplating entry into banana exports would benefit from the Cameroon experience. The book is of especial relevance to agronomists, entomologists, economists, farm managers, government policy makers, large, medium and small scale banana growers, and students and teachers in universities and schools of agriculture.

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Published 15 December 2011
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EAN13 9789956726479
Language English
Document size 3 MB

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ECONOMICS OF BANANA PRODUCTION
ECONOMICS OF BANANA PRODUCTION AND MARKETING IN THE TROPICS A Case Study of Cameroon
Esendugue Gregory Fonsah
Esendugue Gregory Fonsah Angus S.N.D Chidebelu
Economics of Banana Production and Marketing in the Tropics (A Case Study of Cameroon) Esendugue Gregory Fonsah Angus S.N.D Chidebelu Langaa Research & Publishing CIG Mankon, Bamenda
Publisher: LangaaRPCIG Langaa Research & Publishing Common Initiative Group P.O. Box 902 Mankon Bamenda North West Region Cameroon Langaagrp@gmail.com www.langaa-rpcig.net Distributed in and outside N. America by African Books Collective orders@africanbookscollective.com www.africanbookcollective.com ISBN: 9956-726-54-0 ©Esendugue Gregory Fonsah & Angus S.N.D Chidebelu 2012
DISCLAIMER All views expressed in this publication ar reflect the views of Langaa RPCIG.
e those of the author and do not necessarily
About the Authors Chief/Dr. Esendugue Greg Fonsah is an Associate Professor and Extension Economist in the Department of Ag & Applied Economics, College of Agriculture and Environmental Sciences, University of Georgia, Tifton Campus, Georgia, USA and an international consultant. His areas of interest are in Farm management, Production Economics, Agricultural Marketing and Consumer Demand, Agribusiness Management, International Trade and Policy of fruits and vegetables. Professor Fonsah has taught economics, business mathematics, international business and trade, economic geography and research methodology courses at various institutions of higher learning around the world including the University of Buea, Cameroon, Central China Agricultural University, P.R. of China, Wuhan Institute of Technology, P.R. of China, Kentucky College of Business and the University of Georgia in the United States respectively. Professor Fonsah has written and published over 300 scholarly works; journal articles, bulletins, books, book chapters etc. and participated in close to $10 million research grant as Principal or Co-Principal Investigator. Despite his passion for academia, the greater part of his professional career was in the corporate world working with Del Monte Fresh Produce, Cameroon, Lapanday Food Co., Philippines, and Aloha Farm Inc, Hawaii, USA. Dr. Fonsah’s experience in international agriculture and international food industry has developed extensively in the past 23 years where he served in various senior managerial positions in Fresh Food Multinational Corporations in Africa, Asia and North America respectively. He obtained his B.S. in Business Management from Berea College, his MBA (Masters in Business Administration) from Morehead State University, MS in Agricultural Economics from the University of Kentucky and Ph.D. in Agricultural Economics from the University of Nigeria, Nsukka, Nigeria, West Africa respectively. He and his wife, Liu Kailan have two children, Derrick Bebongho and Leilani Ebongkie-Jean. Professor Sonny Angus N. D. Chidebelu was educated at the University of Nigeria, Nsukka, Nigeria; the University of Guelph, Guelph, Ontario, Canada; and the University of Georgia, Athens, Georgia, U.S.A. At the University of Nigeria, he was: Head of the Department of Agricultural Economics; Associate Dean, Faculty of Agriculture; and Associate Dean, School of Postgraduate Studies. He has consulted for National and
International Organizations and has over 50 publications. He is married with four children.
Table of Contents List of Tables…………………………………………………………… ix List of Figures…………………………………………………………... xi Preface………………………………………………………………….. xiii Acknowledgement……………………………………………………… xv Part One: Cameroon's Economy and the Agricultural Sector…………………1 Chapter One: Introduction……………………………………………3 1.1 Background on Cameroon………………………………………………. 4 1.2 Economic Growth………………………………………………………4 1.3 The Agricultural Sector………………………………………………… 5 Chapter Two: Historical Perspective…………………………………7 2.1 Banana production in the former West Cameroon…………………………. 7 2.2 Banana production in the former East Cameroon…………………………. 10 Chapter Three: The Banana Industry………………………………..15 3.1 Cameroon's Banana Industry…………………………………………… 15 3.2 Categories of banana producers………………………………………….. 17 3.3 Multinationals (MNCs)……………………………………………….. 17 3.4 The parastatal organisation…………………………………………….. 19 3.5 Private firms………………………………………………………….. 20 3.6 Private French firms…………………………………………………… 20 3.7 Banana marketing…………………………………………………….. 21 3.8 Domestic Banana Marketing…………………………………………… 23 3.9 The Nutritional and Therapeutic Importance of Bananas…………………. 23 Part Two: Theoretical Issues in Banana Production and Marketing…………25 Chapter Four: The Supply of Bananas……………………………….27 iii
Introduction………………………………………………………………. 27 4.1 Banana Production Theory (supply)……………………………………….27 4.1.1 Soil Management (Smt)………………………………………………. 28 4.1.2 Soil fertility (Fit)…………………………………………………….. 31 4.1.2.1 Nitrogen (N)……………………………………………………… 32 4.1.2..2 Potassium (K)……………………………………………………. 33 4.1.2.3 Phosphorus (P)……………………………………………………. 34 4.1.2.4 Calcium (Ca)……………………………………………………… 34 4.1.2.5 Magnesium (Mg)…………………………………………………... 35 4.1.2.6 Sulphur (S)……………………………………………………….. 36 Chapter Five: Pest and Disease Control……………………………..37 5.1 Sigatoka disease………………………………………………………. 37 5.2 Fusarium Oxyspomm F. sp. cubense (Panama disease)……………………. 39 5.3 Banana Bunch-Top Virus (BBTV)……………………………………... 40 5.4 Cigar-End Rot………………………………………………………... 40 5.5 Moko Disease………………………………………………………… 41 5.6 Blood Disease………………………………………………………… 41 5.7 The Banana Weevil Borer……………………………………………… 42 5.8 SSNematodes………………………………………………………… 43 5.9 Land Snails………………………………………………………….. 43 5.10 Peel-feeding Caterpillar……………………………………………….. 44 Chapter Six: Banana Production Technologies……………………..45 6.1 The Traditional System/Technology……………………………………… 45 6.2 Semi-modern System/Technology………………………………………… 46 6.3 The Modern System/Technology…………………………………………. 48 6.4 Technological Revolution in Banana Production…………………………… 50 6.5 Irrigation Network…………………………………………………… 51Chapter Seven: The Demand for Banana……………………………. 53 Marketing of Cameroon Banana (Demand)………………………………….. 53 7.1 Domestic Price of banana (Pd)…………………………………………. 53 7.2 Foreign Price of Banana (Pj)……………………………………………. 54 7.3 Prices of other Agricultural Food Commodities (Pg)……………………….. 55 7.4 Quality of Export Banana (Qb)………………………………………… 55 7.5 Foreign Population and Consumption (Pp)……………………………….. 56 7.6 Income Level of 'the Importing Country (Yj)………………………………. 56 iv
7.7 Exchange rate (Ex)…………………………………………………… 57 7.8 Yield Trends in the Open Market Suppliers……………………………… 63 7.9 Price Trends in Current and Real Terms………………………………… 64 7.10 Price Formation in Marketing Channels……………………………….. 67 7.11Price Trend in the Preferential Market…………………………………. 68 7.12 Seasonal Price Movement in the Domestic Market………………………. 70 7.13 Marketing Structure and Costs………………………………………… 74 Part Three: Research Methodology…………………………………..77 Chapter Eight: Methodology………………………………………….79 Introduction…………………………………………………………….. 79 8.1 Sampling Plan………………………………………………………… 79 8.2 Production Respondents………………………………………………… 79 8.3 Marketing Respondents………………………………………………… 80 Chapter Nine: Data Collection………………………………………..81 9.1 Production…………………………………………………………….. 81 9.2 Farm Gate Price Survey………………………………………………... 81 9.3 Marketing Survey………………………………………………………82 Chapter: Ten Data Analysis.................................................................. 85 10.1 Banana Production (supply) and Marketing (demand)…………………… 85 10.2 Capital Budgeting Analysis……………………………………………. 87 10.3 Comparative Analysis of Costs and Returns…………………………….. 89 10.4 Sensitivity Analysis……………………………………………………89 10.5 Export Volume and Price Analysis……………………………………. 90 10.6 Domestic Marketing Analysis…………………………………………. 91 10.7 Limitations of the Study………………………………………………. 92 10.8 Suggestions for Further Research………………………………………. 93 Part Four: Empirical Issues in Banana Production and Marketing……………95 Chapter Eleven: Traditional Technology…………………………….97 11.1 Cultural Practices in Traditional Production Technology…………………. 97 v
11.2 Land Preparation…………………………………………………….. 97 11.3 Planting, Planting Material, and Plant Population……………………… 97 11.4 Pruning, replanting, and plant population count…………………………. 98 11.5 Propping…………………………………………………………….. 98 11.6 Deleafmg……………………………………………………………. 99 11.7 Bagging, debudding, anddehanding……………………………………… 99 11.8 Harvesting………………………………………………………….. 99 11.9 Weed control, nematicide, and fertiliser application……………………… 99 Chapter Twelve Semi-Modern Technology………………………….101 12.1 Cultural Practices in the Semi-modern Technology……………………….. 101 12.2 Land Preparation……………………………………………………. 101 12.3 Planting Material…………………………………………………….. 102 12.4 Planting……………………………………………………………... 102 12.5Pruning, Replanting, and Plant Population Count………………………. 103 12.6 Propping, Deleqfing, Bagging, Debudding and Dehanding……………….. 103 12.7 Irrigation……………………………………………………………..103 12.8 Weed control………………………………………………………… 103 12.9 Nematode and Borer Control………………………………………….. 104 12.10 Fertilisation………………………………………………………… 104 12.11 Aerial Spray………………………………………………………. 104 12.12 Cableway Maintenance……………………………………………… 105 12.13 Harvesting…………………………………………………………. 105 12.14 Packing Station…………………………………………………….. 105 12.15 Plastic Removal and Deflowering…………………………………….. 106 12.16 Bunch Sampling and Quality Inspection……………………………….. 106 12.17 Dehanding and Selection…………………………………………….. 106 12.18 Weighing and Labelling……………………………………………… 107 12.19 Spraying…………………………………………………………….107 12.20 Packaging…………………………………………………………...107 12.21 Packing Station Manpower Requirement………………………………. 108 Chapter Thirteen: Modern Production Technology…………………109 13.1 Land Preparation……………………………………………………. 109 13.2 Planting Material……………………………………………………. 109 13.3 Planting…………………………………………………………….. 109 13.4 Pruning……………………………………………………………... 110 13.5 Replanting……………………………………………………………110 vi
13.6 Plant Population Count………………………………………………. 111 13.7 Propping, Bagging, Debudding, and Dehanding………………………… 111 13.8 Irrigation……………………………………………………………. 112 13.9 Weed Control………………………………………………………... 112 13.10 Nematode and Borer Control…………………………………………. 112 13.11 Fertilisation………………………………………………………… 11213.12 Aerial Spray……………………………………………………….. 11213.13 Cableway, Roller and Spacer Bar Maintenance………………………… 112 13.14 Harvesting…………………………………………………………. 113 13.15 Plastic Removal and Deflowering…………………………………….. 113 13.16 Bunch Sampling and Bunch Inspection………………………………… 113 13.17 Dehanding and Selection…………………………………………….. 114 13.18 Traying and Spraying……………………………………………….. 114 13.19 Weighing and Labelling……………………………………………… 114 13.20 Packaging………………………………………………………….. 114 13.21 Vacuuming………………………………………………………… 115 13.22 Palletising………………………………………………………….. 115 13.23 Labour Requirement………………………………………………… 115 13.24 Port Quality Inspection………………………………………………. 116 13.25 Summary…………………………………………………………... 116 Chapter Fourteen: Endemic Problems in Banana Production and Marketing………………………………………………………………11714.1 Input Availability……………………………………………………. 117 14.2 Pests and Diseases……………………………………………………. 117 14.3 Wind Damage……………………………………………………….. 118 14.4 Maintenance of Equipment…………………………………………… 119 14.5 Stevedoring Operation………………………………………………… 119 14.6 Low Prices…………………………………………………………... 119 14.7 Mismanagement……………………………………………………… 119 14.8 Finance……………………………………………………………... 121 14.9 Skilled Workers………………………………………………………121 14.10 Unreliability of workers……………………………………………… 122 14.11 High Worker Turnover……………………………………………… 123 14.12 Quality…………………………………………………………….. 123 14.13 Low Yields………………………………………………………… 123 14.14 Infrastructures……………………………………………………… 124 14.15 Summary…………………………………………………………... 124 vii