Abstract

Agricultural extension and advisory services play an important role in achieving the world’s greatest challenge of food security. Agriculture has been the main stay in the Cameroon’s economy in achieving food security. Agro industries play a pivotal role in the provision of social amenities and employment. It is against this backdrop that agro industries like PAMOL are extending their farms. The principal concern of the researcher was to assess the effects of agricultural extension projects on the socio-economic development of Cameroon using the case of PAMOL Plantations PLC in Ndian Division. The main objective was operationalised to give five specific objectives. The research employed a survey research design. A non-probability design with purposive sampling technique was applied taking into consideration to sample 200 respondents in three sub divisions in Ndian. Data from the field survey was analyzed using SPSS. It was however revealed that PAMOL extension projects have significantly enhanced social amenities provision like Education, Health facilities, recreation centres and it has provided many job opportunities to youths within Ndian division either directly or indirectly. The research equally found out that the problems associated to extension varied from international pressures with respect to land conservation, economic issues relating to currency exchange, management problems to social and political differences. It was however recommended that the government through the different ministerial departments should carry out environmental and social impact assessment at the early phase before projects begin and should involve all the stake holders so as to reduce the level of conflict relating to extension projects.

CHAPTER ONE

INTRODUCTION

1.1 Background to the Study

Global agriculture has been successful in meeting the demand for agricultural output of the increasing population. Thus, consistent growth in agricultural output and a long-term decline in real commodity prices attest to this success. This is seen in the growth of agricultural production which stood at about 2.8 percent during the 1970s, while consumption stood at about 2.3 percent during the same period FAO (1999).

In Africa during the pre-colonial era, agriculture was mainly rudimentary and agricultural products were mainly for home consumption.  The advert of the colonial powers brought agricultural export crops such as coffee, cotton, palm oil, cocoa, rubber, banana etc. leading to their prominence in Africa.  These cash crops were mainly exported to Europe where they served as raw materials for the European growing industries.  In the world now, agriculture is the backbone of most economics and contributes greatly towards gross domestic product.

In 2002, three out of four poor people in developing countries lived in rural areas, with the Majority of them relying, either directly or indirectly, on agriculture for their livelihoods (World Bank, 2007, p. 26). Agriculture plays an important role in both poverty reduction and economic growth. Agriculture remains the main source of income for around 2.5 billion people in the developing world (FAO, 2003, p. 1). Agricultural growth directly contributes to food security, supports poverty reduction and acts as an engine of overall economic growth in much of the developing world. However, the success of the agricultural sector has not been shared evenly across regions and countries. It therefore, still remains unclear whether this success can be sustained and extended to those left behind. An attempt to improve the agricultural sector and extend this success to the regions and countries left behind led to the adoption of programs such as the Green Revolution.

Several African countries show a promising trend in agricultural performance. Ghana, Angola, Benin and Malawi all had yearly per capita agricultural growth rates of 2% or more over the last 15years. Sudan, Burkina Faso, Mozambique, Guinea and Ethiopia had growth rates of above 1% (Broca 2008). In most of these countries growth in food production is the driving force behind the growth in total agricultural output with food production per capita growth rates being at most the same or higher than agricultural growth rates. Only Burkina Faso, where cotton is an important cash crop had a considerably lower food growth rate (0.8%). The African countries that performed well for per capita agricultural and food growth seemed to perform well in other economic sectors as well. Wik (2008).

In Sub-Saharan Africa, agriculture is central to economic growth and the reduction of poverty. This region relies heavily on agriculture because it forms the backbone of most economies. The sector accounts on average for close to 20% of the continent’s total gross GDP and about 60% of the region’s total labour force although many countries in the region depend on agriculture to a much greater extent than these averages indicate. (Beintema 2004). In this region, agricultural labour force as a percentage of total labour force stood at 77.2% in 1970, 70.2% in 1980and later declined to 65.8% and 60.5% in 1990 and 2004 respectively. On the other hand, agricultural contribution to GDP was 19.3% in 1990, 18.8% in 1995, 17.8% in 2000 and 18.2% in 2002 World Bank (2008). In Kenya, agriculture has remained the mainstay of the economy since independence in 1963. Although its contribution to the GDP decreased from 35%  in 1963 to 25% in 1996. It employs about 75% of the labour force, provides most of the food requirements for the nation and earns the country about 60% of the foreign exchange (Nyangito, 1998).

Awokuse, (2008).  Agriculture in sub-Saharan Africa generates at least 30% of Gross Domestic Product, 40% of exports ad over 70% of employment (Steiner, 1986).  This further sheds light on the importance of agricultural export crops such as cocoa (in which Cameroon is the 5^th largest producer), coffee and cotton and Palm oil.  Before 1978, these four made up to 50% of the country’s total export (Gbetnkom, 1996, bad/FAO,1996). Millet, cassava, sorghum, rice etc are also produced, both for home consumption and for exports around the central Africa region.

Generally, in Cameroon, the agricultural sector remains a very important component in the fight against poverty, as poverty has been found to be essentially a rural phenomenon. Plantation agriculture in particular represents one of the main source of employment, and foreign exchange for the nation. Estimates indicate that a one percent growth in plantation agriculture translates to about 1.5 percent economic growth. Therefore, growth in plantation agriculture plays a fundamental role in reducing poverty and can be used to spearhead national development plans.

Public sector commitment is essential to promote agricultural extension and communication for rural development and food security. A new and expanded vision of the public sector role is overdue with respect to food security, rural development and agricultural extension. Agricultural extension and advisory services play an important role in agricultural development and can contribute to improving the welfare of farmers and other people living in rural areas. The impact of the agricultural sector is wide-ranging and extends to economic growth, food security, poverty reduction, livelihoods, rural development and the environment (Green et al., 2005). Moreover, the poorest half of the population benefits significantly more from agricultural growth than growth in other sectors of the economy (UN, 2008; World Bank, 2007).

Nevertheless, despite evidence that investment in agriculture has beneficial impacts on agricultural growth and poverty reduction (Fan and Rao, 2003). Since 1980 there has been a decline or stagnation in public expenditure on agriculture in most developing countries (Akroyd and Smith, 2007). Likewise, the proportion of official development assistance (ODA) going to agriculture has also declined from around 18 per cent in 1979 to 3.5 per cent in 2004 (World Bank, 2007).

Extension services can be organized and delivered in a variety of forms, but their ultimate aim is to increase farmers’ productivity and income. Productivity improvements are only possible when there is a gap between actual and potential productivity Anderson and Feder (2003). They suggest two types of ‘gaps’ contribute to the productivity differential – the technology gap and the management gap.  Extension can contribute to the reduction of the productivity differential by increasing the speed of technology transfer and by increasing farmers’ knowledge and assisting them in improving farm management practices (Birkhaeuser et al., 1991; Feder et al., 2004b). Additionally, extension services also play an important role in improving the information flow from farmers to scientists (Anderson, 2007; Birkhaeuser et al., 1991). With a clear divide between the two sides of the debate; what is the relationship between a business and the society within which it operates? And what responsibilities do businesses owe to the societies to regulate their actions in pursuit of profit?

In Cameroon, large scale plantations were established by the colonial masters (Germans and British) for the purpose of raw material. After independence, many African countries and Cameroon in particular continued investing in plantation agriculture even though with very difficult situations. As a result of the economic crisis that hit the country in the 80’s and some financial constraints, the government hen decided to Privatized these companies (Cameroon Development Corporation and PAMOL Plantation Public Limited Company PPPLC) all located in the South West Region of Cameroon (Konings, 2011) PAMOL Plantation is a product of Germans which was handed o the United Africa Company Limited and Levers Nigeria Plantation limited. Since its creation (1884), it has gone through the experience of different colonial masters which greatly affected not only its productivity but as well as its name; such as PAMOL Cameroon- Nigeria Limited (PCNL), Pamol Cameroon limited (PCL), Plantation Pamol du Cameroun limited (PPCL), Pamol Plantation Limited (PPL), and with the introduction of the organization for the Harmonization of Business Laws in Africa (OHADA) and its provisions, PAMOL Plantations Limited (PPL)  became PAMOL Plantations Public Limited Company (PPPLC) (Konings 2011). This company is located in the rich and fertile climate associated to palm production of NDIAN and Meme Divisions. NDIAN Division has a larger proportion comprising of Lobe and Ndian estate and meme division having just Bai estate. This company is involved in the growing of oil palm trees for palm oil production (vegetable oil) all located in Ndian and rubber production in Bai estate.  This plantation is made up of nine share capital holders with a grand capital of 1.874.000FCFA.

1.2 Problem Statement

Like many industries in their early stages, the palm oil industry initially developed with very little regulation. Many of the early-stage companies planted on high conservation value forest (HCVF) and did not appropriately address social issues relating to human and indigenous rights.

Is evident that areas with huge agro-industrial Plantations as the case with PAMOL ought to have witnessed a lot of social (health, education and recreational centers), economic (job creation, promotion of small businesses, infrastructural development like houses, roads, and increase income levels.) and the provision of social amenities (electricity and water) to its workers and the communities where they are located. The great concern of the researcher is to examine the effects of projects carried out by PAMOL plantations PLC to the socio economic development of Cameroon with specific concern to the PAMOL projects in Ndian Division (Bakassi and Ekondo Nene). With specific reference to the above, the establishment of a plantation (project) requires vast land for cultivation. And that their presence has led to rapid urbanization as well as negative environmental deterioration effects.

The extension of farm land necessary for Palm growth happens to be an opportunity cost in an economic sense. Therefore, the cost of such projects is differently felt by the community. Lately, PAMOL did extension works at Ekondo Nene in EkondoTiti sub-division where the headquarter is based. But does this extension work add revenue to the council? Or is it only generating revenue to the company itself? However, these questions cannot be answered without proper research. Since the creation of PAMOL in Ndian, the influx of migrants has increased the land value due to urbanization and the company has made little or no efforts to lease or give out portion of land to the municipality. Mundemba is experiencing urban pressure and the farm land of PAMOL specifically field 49A and 39A are just sharing boundary with the main town. Land available for growing cereal crops and the food crops is not available for the local community. This all justify the increase poverty situation, land disputes cases swelling our courts. The research however seeks to explain whether the situation experienced today will be faced tomorrow; as the case with the PAMOL Palm projects.

Plantations project involve huge cost in terms of social cost and benefits. Cutting down of trees to establish plantations increases the chances of global warming, environmental degradation and risk zones for animals. Even though PAMOL has existed in Ndian Division for a very long time, Ndian Division still happens to be one of the enclave Divisions in Cameroon. The roads are very poor with little attention given by this company. The researcher, being an indigene from this Division for more than 20 years have never heard of Scholarship programs granted by this company to native of the area.  And hence, the research is out to equally investigate if this company has a social corporate Responsibility Policy and if yes how far has it been implemented.

Over 60% of their plantations are aging with palm trees above 25years. This however, increases the cost of harvesting and maintaining the farms knowing well that the life span of a palm tree in 30 years (Bouddin Adams, January 2016). As a result, most of the old trees have been abandoned and the company tries to meet the demand by buying crops from small holders. The number of people living within the Bakassi area is very low with population density below 1 person per kilometer square. Owing to the green tree accord agreement putting an end to the Bakassi crisis in 2004, the government of Cameroon main aim is to repopulate the Bakassi area. Statistics from the April 2009 census results reveals that less than 25 percent of the people living within this area are Cameroonians. It is within this backdrop that new farms are being created to increase the number of Cameroonians to live within these areas. As a result of this, the research will be trying to investigate the contributions of this project to Ndian division and equally identify the problems associated with the agricultural extension projects in Ndian division.

1.3 Research Questions

1. What are the environmental effects of the PAMOL Palm extension Projects in Ndian?
2. What are the effects of the PAMOL Palm extension projects on the provision of social amenities?
3. What are the effects of the PAMOL palm extension projects on employment?
4. What are the problems associated with the PAMOL Agricultural extension projects in Ndian?