14 August 2011
Noha Nyamedjo Company, a Cameroonian cocoa trader, has joined the Business Call to Action (BCtA) with its commitment to improve the livelihoods of up to 60,000 cocoa farmers.
The company has pledged to build and operate a US$24 million high-tech processing plant in Douala that will transform raw cocoa beans into higher-value goods including cocoa butter, powder and liquor. The company expects to increase its cocoa purchases by 5,000 tons each year. In addition, the processing plant will provide full-time employment and training for about 145 employees.
BCtA interviewed Chief Executive Officer Noha Mésack to learn more about this initiative:
BCtA: You are already the fifth largest exporter of raw cocoa beans in Cameroon. What motivated you to invest so heavily in cocoa processing?
NM: We are motivated by a couple of major concerns:
One, this is a good business investment. Currently, there is just a single company processing cocoa mass and derivatives in Cameroon and it is a subsidiary of an international firm. We will be the first local manufacturer or processor of cocoa in Cameroon, a classification that will help us grow our business significantly.
Two, world cocoa prices are volatile. Price fluctuations of raw cocoa beans make it difficult for farmers, processors, traders, and everyone along the cocoa value chain to predict potential earnings for the year. By investing in this processing facility, we are helping to protect our business and Cameroon’s farmers from the destabilizing impact of market pricing for raw materials.
Three, through this initiative, we will help improve and promote Cameroon’s cocoa industry, which will benefit us all.
BCtA: As you mentioned, commodity prices are often volatile. Isn’t it risky to invest so heavily on cocoa production? How do you mitigate that risk?
NM: Of course the project involves risk. We’ve done a lot of research on the business and organizational risks involved and tried our best to mitigate them through partnerships with more experienced companies, donor organizations and research organizations. For example, we are working with the University of the West Indies in Trinidad and Tobago on a research and development project to ensure the sustainability of our project.
BCtA: Where do you see this project headed in 10 years?
NM: Over the next 10 years, we will purchase an additional 20,000 tons of cocoa from Cameroon’s rural small-holder farmers. This investment will touch almost 60,000 farmers and their families. In addition to farmers, we will provide jobs and training for those working at our processing plant. We have also committed to building a local medical center in partnership with a local community church. This medical center will benefit up to 1,000 members of the community.
