Local cooking oil producers decry imperfect competition

They might go out of market if measures are not taken to curb massive importation and implement quality control.

The cooking oil sector is facing unfair competition from unscrupulous importers who smuggled oil of doubtful quality into the country and sell at prices lower than the homologated ones causing a fall in the demand for locally produced oil.

The imperfect competition is further compounded by the Boko Haram insurgencies in the Extreme North and other countries in the Sub Region making it impossible for continued supply. Should the situation persist, there is fear that the over 35,000 direct employees of oil producing company will lose their jobs if the companies close their doors.

Giving the gravity of the situation, Littoral Governor, Joseph Beti Assomo, received a disgruntled 15-man delegation made up of palm oil producers, refineries and soap producing companies, who expressed their disgruntlement on the situation at hand.

After the close to an hour discussion behind closed doors, the local actors expressed their anger telling the press of their unsold goods while others said they have stopped producing because their tanks are full.

Jacquis Kemleu of ASROC, a company that produces Pamol, and vegetable oil, said they occupy the third position in palm oil production after CDC and Socapalm, they boast of over 2,500 direct jobs and 2,000 small holders related to Pamol activities.

“There will be a total disaster if nothing is done to salvage the situation,” he said. Because of the situation, Pamol’s tanks are full “for the next five days, we shall not produce because there is no storage space.

Just imagine the lost in millions if we produce an average of 100 tonnes of palm oil daily, not to talk of big producers like CDC”. To Wonkam Dieudonné of CDC, the market is inundated with oil which does not reflect the 2009 agreement in respect to prices and the Cameroonian norms.

“When oil is sold beyond the production price, there is a serious problem. The Governor alone cannot handle the problem, there is need to set up an Inter-ministerial Committee to work together with local actors for a lasting solution,” he explained.

Calvin Jepmou Nya, President of the National Chamber of Cameroon Consumers, blamed the situation on customs officials who allow the goods into the country and ANOR and the Trade Ministry for lack of quality control and non respect of homologated prices saying each office should assume its responsibility.