info.afrindex.com
China-Africa Trade Information Service
info.afrindex.com
China-Africa Trade Information Service
Image: businessincameroon
Agriculture and forestry remain the main sectors in Cameroon. The Cameroon government and industry stakeholders have been concerned about the impact of increased food imports on local industries and rural communities, especially because vegetable oils, particularly the palm oil, has a vital role to play not only as an important source of nutrition for the Cameroon population, but also for their contribution to rural incomes and employment opportunities.
Particularly, Cameroon government is expecting a significant progress in implementation of new oil extraction technology where mainly in the palm oil processing technology the value added chain in this commodity is expected. Cameroon's oil palm industry still plays a significant role in the national economy, providing oil for house hold consumption, industrial use as well as employment for thousands of Cameroonians who are engaged in production, processing and marketing.
Between 2014 and 2018, Cameroon's palm oil production recorded a notable rise from 343,000 tons to 413,000 tons, the ministry of agriculture reveals.
For the ministry, this production is closer to the target of 450,000 tons by 2020. It indicates that though the target had been underestimated, the positive performance is due to the actions undertaken in that sector. These are notably the implementation of a palm oil and rubber development strategy, the inclusion of the palm oil sector in the value chain development programme and provision of subsidies to producers.
Indeed, on February 14, 2018, the union of palm oil producers Unexpalm signed an agreement with the government for a program to support fertilization of palm gardens in rural areas. Valued at XAF3.6 billion, the 8-year program is a government initiative to provide subsidized fertilizers to producers. Thanks to this initiative, fertilizer prices have been reduced by 25% and a multi-year perpetuation fund has been set.
Domestic palm oil consumption in Cameroon amounted to approximately 500 thousand metric tons in 2019. As a reminder, after having long peaked at 100,000 tons per year, Cameroon's annual structural shortfall in crude palm oil now officially stands at 130,000 tons. This is caused by higher investment by refiners, while local production has been stagnating for years.
