Privatization of fertilizer marketing in Cameroon : a third year assessment of the fertilizer sub-sector reform program -- technical report

Third annual technical assessment covers program year 1990. Despite very unfavorable economic conditions, the program has succeeded in privatizing fertilizer importation and distribution, thereby giving farmers access to fertilizer at competitive prices. A private sector market for fertilizer has been established and participants -- commercial banks, importers, and distributors -- have responded to market demand signals. On the negative side, demand from coffee growers, the main consumers of fertilizer, fell for the second straight year due to depressed coffee prices and the still incomplete settlement of arrears for coffee sales. Once planters have been paid for all coffee previously delivered and coffee buyers are able to offer them cash payment for future deliveries, confidence in the market will be restored and fertilizer consumption should revive. Additionally, several Cameroonian-owned companies, including several not tied to the coffee sector, have expressed interest in importing fertilizer under the 1991 program, giving hope for broader participation at the importer level. Indications of increased financial commitments by importers and increased participation of small-scale distributors also give hope for long-term sustainability of a privatized fertilizer marketing system.