Business › Agribusiness

Palm Oil Producers Export to Nigeria Despite Shortage in Cameroon

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Palm Kenel

 Price margin in Camroon is rising from 650 CFA francs to 1,000 or even 1,100 CFA francs on the shelves. This situation is justified by the global economic situation, but also by the diversion of part of the production to neighbouring Nigeria.

 

This increase is steadily rising and is the result of a combination of factors. The problem of the diversion of part of the national production to Nigeria by certain producers may explain this vertiginous rise in prices. However, national production is already quite marginal, and Cameroon regularly resorts to imports to guarantee its stocks and avoid a local shortage. Over the years, the rate of imports has increased. From nearly 80,000 tonnes in 2019, 70,000 tonnes in 2020 and 100,000 tonnes in 2021, Cameroon has authorised imports of 143,000 tonnes of crude palm oil in 2022.

The key to the sector’s problems would be to get out of the informal sector because 30% of national production escapes the norm, and a good part of the production of the South West goes to Nigeria. This statement was made by an official of the Institute of Agricultural Research for Development (Irad), during discussions held on 12 October at the Ministry of Trade, during the ad-hoc committee for the regulation of the crude palm oil sector. This revelation is unequivocal, and provides sufficient information on the reasons for the inflation observed since the second half of the year on the crude palm oil market. On the stalls, housewives are now forced to pay up to 1100 FCFA to obtain a litre of crude palm oil, i.e. about 100% of the price applied a year ago.

During the year 2022, the decision to revise upwards the volume of crude palm oil imports is indicative of the difficulties encountered by industrialists in obtaining the raw material for processing to produce derivative products.

As an illustration, the projected monthly national production to be redistributed (to refiners, editor’s note) for the month of February 2022 is 19,650 tonnes, for a demand of 126,065 tonnes,” said the secretary general of the Cameroon Oilseed Refiners Association (Asroc), Jacquis Kemleu. It should be noted that members of this association, notably Azur S.A, Scr Maya et Cie, Sodecoton, etc., produce 95% of the refined vegetable oils and 98% of the household soaps available on the Cameroonian market.



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Published on 03.01.2023

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