A) INTRODUCTION

Cocoa plantation can be seen as a business and source of income

generation. Cocoa is planted in Cameroon for many years. Cocoa is also
called “cacao” (derived from the Spanish word “cacao”) and it is mainly grown
for it’s beans. From which cocoa solids and cocoa butter are extracted. Cocoa
beans are mainly used in the production of chocolate, cocoa powder and
cocoa butter. Cocoa butter is also used in the cosmetic industry. Cocoa is an
important bean crop from humid tropics.

In Cameroon, cocoa is mostly planted in the south west region because

it’s temperature is favorable for cocoa cultivation. Cocoa beans
commercialization is very successful due to its high demand in local and
international markets. This is also because of cocoa’s composite uses. With a
proper orchard management, one can expect decent profit from cocoa
cultivation.

Cocoa trees have a life span of about 40 years and it should be noted
that during the first year, the cocoa plants will not produce a great output but
as time goes, output will increase if well taken care of.

In this partnership called LEAFLET PARTNERSHIP LIMITED our main

objective is to produce cocoa beans which is gotten from cocoa pod and sell
them both in the home and foreign markets. We are out for profit maximization
and thus we shall put on the best strategies which can help us to attain this
objective. We are five partners in this project and each partner’s contribution
will be given in another section. Our opening capital will be brought from our
respective families but we are open to more investors.

Our main goal is to produce chocolate, candy and other cocoa

derived products. We will buy a 2 hectare land in Muyuka. We shall employ at
least 30 workers and pay them 10000 FRS per week. Depending of the tasks,

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we shall use either the time or piece rate of wage determination. The main
tools and costs for the beginning of the business will be summarized on the
table below.

ITEM QUANTITY UNIT TOTAL

PRICE COST
Land(hectare) 1 10000000 10000000
Watering can 15 1000 15000
Rake 10 700 7000
Hoe 20 1000 20000
Boots 30 15000 450000
Measuring scales 5 20000 100000
Machetes 40 2000 80000
Buckets 30 500 15000
Wood to build a Small 150 3500 525000
building for workers and our
offices(load)
Zinc 40 4500 180000
Cocoa seeds(sachets of 50) 30 5500 165000
Chemicals for pesticide, solar 10 7800 78000
pump
Spraying tank 5 22000 110000
Provision for other costs / / 2000000
Total 13745000

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There are three main varieties of cocoa plant which are: the forastero, criotto
and trinitano. On the diagram above, the one on the right end is the forastero.
It is the most widely used and constitutes 80-90% of the world’s cocoa
production. The other two species are rare. We shall plant the forastero specie
as it gives us some guarantee as compared to the other species.

B) GENERAL REQUIREMENTS FOR COCOA PRODUCTION

 CAPITAL FORMATION

In order to effectively carry on this business we will need a large capital. This
will help us to survive during the early years of our business while waiting for
profit in the subsequent years. As such STELLA, ALINE, JACKSON and
LENITA will contribute 5 million each while JOSEPH will bring in 15 million.

 LAND PREPARATION AND LABOUR

To start, land should be well cleared. We will use 2 hectares of land and we
shall employ about 30workers.They will be paid 20000 FRS weekly and given
water and food. The piece of land will be given 3-4 ploughings until the soil
attains a fine state. We will go for a land test, soil will be supplemented with
required nutrients. As cocoa requires well-drained soils, land should be
prepared to ease water drainage.

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  CLIMATE REQUIREMENTS

Basically, cocoa is a tropically based perennial crop and as it has been

observed, temperature and rainfall are very important for tree optimum growth
and yield. Cocoa bean trees can be cultivated at altitudes of up to 1150 meters
above sea level. Cocoa crops require an average annual rainfall of 1000mm-
2000mm and a relative humidity of 80-85%. The maximum and minimum
temperatures required for cocoa cultivation are 34°C and 14°C.

 SOIL REQUIREMENTS

Clay soil is the best soil for cocoa plantation, not sandy nor loam soil. The
south west region is the most suitable region because of its fertile volcanic
soils. This is why we shall establish our plantation at Muyuka. The soil here
has a PH range of 6.5-7.0 and the land experiences dryness and easily loses
water during harmattan. The clay soil also has a high water retention level
which will optimize growth and yield.

 SEED PROPAGATION

Cocoa seeds will be sown on nursery bags or raised in nursery beds which
will require shade trees. Seed are sown soon after extraction and seedlings of
60cm high should be ready for transplantation on main field so that they can
better germinate. Also, only seeds whose pod husk thickness is less than 1cm
and bean weight is more than 1gram should be sown.

 AVAILABILITY OF NATURAL AND ARTIFICIAL SHADES

When planting cocoa, we need more shade at the initial stage than at the
late stage of growth. Thus natural and artificial shades should be created
during the seedling and growth periods.

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  IRRIGATION

Proper irrigation of cocoa plant ensures healthy growth and yield.

Constant moisture should be maintained as cocoa plants are highly sensitive
to drought. Young cocoa plants should be irrigated frequently at an interval of
3 days especially during summer and dry climatic conditions. It does not
require any watering during the rainy season. In case of flood or intense
rainfall, make sure to drain out the water from the fields as soon as possible.
Adopting drip irrigation is the best way of using water effectively. Applying
fertilizer through drip will enable a better utilization of fertilizers and controlling
weed growth.

 MANURE AND FERTILIZERS

Cocoa plant responds very well to organic manures and fertilizers. Any
nutrient or micronutrient gap should be filled during soil and land
preparation. On an average, each cocoa plant requires 8-10kg of well
rotten farm yard manure along with 100grams of “N”, 40grams of “P205”
and 140grams of K20 per year.

These fertilizers should be applied in two equal doses, one in April-May

and the other in August-September. Organic manure should be applied in
the first year. 1/3rd of the fertilizers in the first year, 2/3rd in second year and
a full dose in the 3rd year.

Also if the variety we plant is been infected by diseases we can use

sharp rod to spray on the plants (buy from an agro-shop). During it’s fruitful
season in June, July and August, cocoa is usually affected by black pod
disease which is caused by too much cold during this period.

It is recommended to use “Ultimax plus Ridomil” to spray on the trees

though in the past we used copper sulphate but it was discovered that

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 copper sulphate has adverse effects on cocoa. Thus, Ridomil is widely
accepted because of it’s efficiency. In the spraying tank, mix Ridomil with
water and some other chemicals and with this mixture, termites and other
insects will be neutralized. Spray with a solar pump attached to the tank.

 PRUNING

Pruning is the process of thinning of branches and removing old or

dead stems and branches. Most farm management allow the crops to grow
well by allowing direct sunlight. Pruning in cocoa cultivation should be
carried out twice a year. Pruning is done to encourage a tree structure or
control the height that allows sunlight. The first pruning is carried out after
main harvest just before monsoon. The second pruning should be done
6months after the first one. Any lower or dead branch should be removed.
All plants should be limited to 4-5 branches. Burn any disease branch when
they are removed.

 PESTS AND DISEASES

In any crop cultivation, pest and disease control is vital for getting
quality products and high yields. The main pests and diseases which may
hinder cocoa cultivation include: mealy bugs, plant hoppers, caterpillars,
mosquitoes, cocoa pod borer, stem girdlers, black pod, and frosty pod.

 PLANTING MATERIAL SELECTION

This is a very important stage because it directly affects the crop yield. If
we are planning to use seedlings, select rigorous and healthy seedlings from
genuine/reputed/certified nurseries. Make sure to select a seedling grafted
plant which is at least 4-5 months old. The cocoa seedling plant should be
placed at the center of the farm.

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 Now the planting process implies that when we will be cultivating our 2
hectares of land, we can start planting cocoa seeds from the end of May to
July. If we plant it in May, it will not germinate because it might break because
of rainfall. At times, we can plant between August and October but there will
be high rainfall which together with sand will hinder seed germination.

The planting process is known as transplanting and normally consists of

nursing cocoa on a nursery bed. The germinated cocoa will be carried in nylon
bags filled with sand with the objective of preventing any of the roots from
cutting and after this, they will be planted in the hole dug.

 COCOA MAINTAINANCE OR MANAGEMENT

This process starts from the planting stage after we have gotten a fertile land.
We should ensure that the spacing between cocoa plants must be about
10feets. The aim of this measure is that when the plants will be mature, there
should be easy movement between them, the branches will not touch each
other and it will facilitate ventilation.

Secondly, when cocoa is developing, there are some sprouts out premature
cocoa trees beside each cocoa tree which need to be cut or trim off
immediately you see them. The trimming process allows the tree to maintain
it’s size and height and it will bring out abundant yields.

Finally, when the cocoa tree is getting older (approaching between the 15-20th
year), you can apply fertilizers because the law of diminishing returns normally
affects plant productivity.

 YIELD

The yield of cocoa crop depends on many factors like the variety of cultivation,
soil type, plant age, control of pest and diseases and other farm management
practices. On an average, 50-60 pods (trees) can be expected per year. The

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yields would be in vegetative propagation when compared to seed propagation
method. In seed propagation method, crops of about 200kg per hectare can be
obtained while in vegetative method, about 500-800kg per hectare can be
obtained.

One thing that can’t be hidden is that there is a ready market for cocoa. After
plucking which entails little tedious processes in terms of packing, crushing,
removing the seeds from the pods, fermenting for 5 days and sun drying. In
the sun drying stage, we wait till the time the cocoa will become dry. After the
drying stage, there will be many ready buyers to buy from us.

About the pricing of cocoa, the market price often fluctuates due to changes in
the international market. Sometimes a kilogram can cost 800FCFA and during
other periods, it will cost 1200FCFA. The price also depends on the global
yield of cocoa for the year. Cocoa produces all-round the year once it is
mature but large harvests are mostly recorded in March, June, August and
October to December.

 HARVEST AND THRESHING

Cocoa trees start flowering from the 3rd year of sowing or planting. Actual
economic yield starts from the 5th year because during the 1st year, the
cocoa does not produce much output during the 1st harvesting year. Cocoa
pods get mature in about 5-6 months. One can judge the maturity of crops
by color change. Generally, green pods turn to yellow when mature. We
must also make sure to harvest at regular interval of10-12days. Do not
allow pods to be over ripened. The pods are opened by hitting them on a
hard surface or using a mallet.

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  POST HARVEST

Once harvesting is done, pod fermentation should be carried out.

Afterwards, pod breaking should take place. During this process, we may
get 30-35 wet cocoa beans per pod. Beans will go through fermentation
and drying. Dried cocoa beans should be graded, packed and stored.

C) MARKETING PLAN

This aspect of production focuses on the uniqueness of our cocoa and how it
will benefit the consumer while being profitable. The main objective of the
marketing plan is to convince people to buy our products. The cocoa market in
Cameroon is a perfectly competitive market and as such we have developed
the following strategies in order to gain a share of the market:

 PRICING POLICY

The price charged on cocoa should be competitive but still allow a reasonable
profit margin. In order to come out with a price, we ought to calculate our
costs, compare our product with those of our competitors. Since we are new in

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the market, we should sell at a lower price than that of our rivals so as to
create awareness.

 SALES AND DISTRIBUTION PLAN

It deals with the different ways through which the cocoa will be marketed. This
can be done in different ways like e-commerce, sales representatives, and
home delivery or through retail. Since from the beginning we have to satisfy
consumers, we shall use the three main channels of distribution

-PRODUCER—FINAL CONSUMER

-PRODUCER—RETAILER—FINAL CONSUMER

-PRODUCER—WHOLESALER—RETAILER—FINAL CONSUMER

The delivery of goods is done within a maximum time of 72hours depending on

the distance. If internationally, the cocoa beans already graded and loaded
into cargo vessels are then shipped in bags labelled “LEAFLET
PARTNERSHIP LIMITED”

We shall also have several salespersons such as: product demonstrators,

telephone solicitors, order getters, delivery salespeople and also
commissioned sales people. These salespeople make sure that customer
loyalty is attained by exceeding the customers’ expectation. This will impress
customers and push them to keep on buying in long-term. An increase in
revenue can be a proof of sales force effectiveness.

 TRANSACTION PROCESS BETWEEN BUSINESS AND CUSTOMERS

Customers are allowed to pay in different ways like cash, cheque, bank
transfers and any customer who pays promptly the purchase of a large

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quantity of cocoa will be given discounts or imposed penalties for late
payment.

Also we have a return policy where customers can request a cash refund on
sold goods within 90days after the sales. After the 90th day, they will only
receive store credit. Warranties are also given to customers such that in case
of any problem with the product, replacements can be made within a time limit
of 2weeks. Customers address and other identification information will also be
recorded.

 ADVERTISING AND PROMOTION PLAN

We will use different media to create awareness of our product (radio, TV,
newspapers, magazine outlet, websites and other social media like Facebook,
twitter, Instagram) and see which media will reach the target audience at a low
cost. We shall do the advertisement economically. Hence, we use options that
will let us pass our message to the same customers many times rather than
trying to catch a wide range of customers at a time. It helps to reinforce the
message in those who receive it and thereafter we will use media outlets that
align with our image.

-PROMOTION: It includes the use of coupons, holding of sales, placing an

online discount code on our ads. Also, a door flyer delivery, cooperative
advertisement with wholesalers, retailers, and other businesses. We can also
use billboards or offer free samples, product demonstrations and the point of
purchase displays, write articles and special events including community
involvement.

-SELLING: It is the first and foremost transaction between the seller and the
prospective buyer where money is exchanged for the good (cocoa).

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D) SWOT ANALYSIS OF PROJECT

We need to carry out swot analysis on the business environment to know our
strength, weaknesses, opportunities and target.

 INTERNAL APPRAISAL
 STRENGTH

Our main aim here is the product quality, to be efficient and employ skillful
workers in the production process and have a good information system. All of
this will ensure customer satisfaction.

 WEAKNESSES

Our weaknesses will be the fear of producing low quality products, unsecure
employees who will reduce the efficiency of the organization.

 EXTERNAL APPRAISAL
 OPPORTUNITIES

Since the region in which we will settle is full of cocoa producers, it will be easy
for us to study them and adapt to them. The use of fertilizers will also assure
us good harvest.

 THREATS

Our main threat is competition and limited resources. We shall find strategies
in other to have a share of the market.

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E) CONCLUSION

To conclude the cocoa market has some clear advantages and if we put
all the above mentioned principles in practice, we are sure to maximize profit.

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