The substitution of mineral fertilizers by compost from household waste in Cameroon: economic analysis with a partial equilibrium model

Abstract

This paper analyses the possibility of substitution between compost and mineral fertilizer in order to assess the impact on the foreign exchange savings in Cameroon of increasing the use of compost. In this regard, a partial equilibrium model was built up and used as a tool for policy simulations. The review of existing literature already suggests that, the compost commercial value i.e. value of substitution (33,740 FCFA tonne(-1)) is higher compared to the compost real price (30,000 FCFA tonne(-1)), proving that it could be profitable to substitute the mineral fertilizer by compost. Further results from the scenarios used in the modelling exercise show that, increasing the compost availability is the most favourable policy for the substitution of mineral fertilizer by compost. This policy helps to save about 18.55% of the annual imported mineral fertilizer quantity and thus to avoid approximately 8.47% of the yearly total import expenditure in Cameroon. The policy of decreasing the transport rate of compost in regions that are far from the city is also favourable to the substitution. Therefore, in order to encourage the substitution of mineral fertilizer by compost, programmes of popularization of compost should be highlighted and be among the top priorities in the agricultural policy of the Cameroon government.