Nestlé Cameroon to reduce raw materials imports by 70%

Nestlé

Thu, 5 Jun 2014 Source: businessincameroon.com

The Cameroonian subsidiary of Nestlé is offering, in the medium term, to buy an additional 75% of raw materials, according to internal sources at the company. Mathematically, the project would correspond to a reduction in imports by around 70%.

Currently, 84% of raw materials used in the Douala Nestlé factory as well as 59% of packaging used for processing Nestlé Cameroon products are imported. Imports are primarily cassava starch (1,500 to 1,800 tonnes per year for expenditure reaching 300 million FCfa) and cooking salt, ingredients used in the production of Maggi soup bases.

According to our source, this product represents 90% of Douala Nestlé factory’s total production.

In addition to the contacts already made with two salt production companies based in Douala, with which Nestlé Cameroon plans to source up to 100% of its cooking salt needs, the Cameroonian subsidiary of the Swiss agro-foods Swiss giant is eyeing starch production by Société de transformation de manioc de Sangmélima or the Sangelima Cassava-Processing Company (Sotramas), currently being put in place in the South. Sotramas plans to process 120 tonnes of cassava starch daily.

After taking samples of cassava varieties that can be used by the company across Cameroon, the Nestlé Research Centre in Abidjan chose four varieties that met the company’s quality criteria. These varieties will be cultivated by Sotramas providers which will then provide Nestlé Cameroon with the finished product if the price is competitive.

In this effort to reduce cassava importation, Nestlé is also counting on PIDMA, a Cameroonian government programme financed to the tune of 50 billion FCfa by the World Bank which aims to boost the production of cassava, corn and sorghum in order to facilitate supply to agro-foods companies.

Source: businessincameroon.com