Climate Change, Cotton Prices and Production in Cameroon

Abstract

This study aims to examine the impact of (i) climate change and international market price volatility on cotton production in Cameroon, (ii) climate change and international market price volatility on the prices of cotton farmers, (iii) the purchase price of cotton farmers on cotton production, (iv) cotton production on the purchase price of cotton farmers. The statistics used mainly come from the SODECOTON database, the World Bank Group Climate Change Knowledge Portal and Trading Economics. Econometric estimates made using a VAR model reveal that (i) the purchase price of seed cotton tends to significantly boost production, (ii) production does not significantly influence the purchase price of seed cotton, and (iii) the increase in the world price of cotton and significant variations in temperature are conducive to a revaluation of the purchase price of seed cotton. To improve cotton production, it would be advisable, in particular, to (i) make the purchase price of seed cotton more attractive to cotton growers and (ii) adopt effective adaptation or mitigation techniques against variations in rainfall.