Internal disagreements emerge in Cameroon as industry debates farmgate chicken prices

CAMEROON – The poultry industry in Cameroon is facing internal disagreements over proposed standardized farmgate chicken prices put forth by the Cameroon Poultry Interprofessional Association (Ipavic).

In a letter dated October 23, François Djonou, the president of Ipavic, announced the intention to standardize farmgate chicken prices.

The proposed pricing suggested that chickens weighing between 1.8 and 2 kg would be sold at CFA2,300. However, not all industry professionals are in agreement with this proposal.

The Association of Broiler Chicken Producers in the Littoral and Southwest (Appolis) has expressed concerns that the suggested price does not accurately reflect the actual production costs.

According to Patrick Bakam, interim vice president of Appolis, the proposed price of CFA2,300 does not match the production costs, which are estimated at CFA2,200 for a chicken weighing 1.7 to 2 kg.

Appolis suggested a farmgate price of CFA3,000 for a 2 kg chicken, adjusted from Ipavic’s proposed CFA2,300.

Ipavic, however, claimed not to recognize Appolis as an affiliated association, while Appolis argued that it is automatically affiliated since Ipavic’s competence has been extended interprofessionally.

In addition, Appolis not only suggested adjusting the kilogram price but also advocated for electronic weighing from the farm to the market retailer and demanded the kilogram price be determined based on input costs and chick price fluctuations.

In late October, Ipavic announced that prices would be regularly adjusted based on raw material prices. Until now, chicken and egg prices in Cameroon have been determined solely by supply and demand, without regulation from Ipavic or the Cameroonian Trade Ministry.

At that period, consumer reports indicated a surge in chicken prices, with a 2-kilogram chicken reaching between CFA4,000 and CFA4,500 in Douala markets, compared to CFA3,000 before August 2023.

In Yaoundé, prices were even higher, with consumers spending between CFA4,000 and CFA4,500 for a 1.5-kilogram chicken and between CFA5,000 and CFA6,000 for a 2 to 2.5-kilogram bird.

Ipavic attributed the price increase to intermediaries and speculators and aimed to regulate farmgate prices to control distributor margins in the consumer market.

The outcome of these pricing disagreements is to likely impact both producers and consumers in the Cameroonian poultry market.