Cameroon’s palm oil sector lost momentum in the second quarter of 2025, with national crude palm oil production falling sharply, according to the Economic Outlook Note published by the Ministry of Finance.
Output declined by 39.7% quarter-on-quarter to 46,826 tons in the second quarter of 2025. The Ministry of Finance attributed part of the drop to seasonal effects, as the first quarter is typically the peak production period.
The slowdown remains significant on an annual basis. Compared with the second quarter of 2024, production fell by 16%. Over the full first half of 2025, the sector recorded a year-on-year contraction of 12.7%.
The Ministry of Finance linked the decline to two structural constraints: aging plantations and growing difficulties faced by Socapalm, the country’s main palm oil producer, in collecting palm nuts from independent growers. These producers are calling for higher purchase prices.
Beyond these factors, the sector continues to face broader challenges. Low plantation productivity remains a major constraint, while efforts to expand planted areas are hampered by land access issues and recurring disputes with local communities. Fraudulent exports also divert part of domestic supply, worsening imbalances between supply and demand on the local market.
In this context, the entry of new players such as Opalm could alter the sector’s outlook. The company plans to begin construction of a palm oil processing plant in the Nyong-Ekellé department, in the Central region, in the first quarter of 2026. According to Opalm chief executive Tarek Daoud, the project aims to support government efforts to better structure rural areas while increasing national production capacity.
Daoud said Cameroon currently faces a palm oil deficit of about 300,000 tons. The Opalm program is expected to add 108,000 tons to supply available for local industries, representing a reduction of around 50% of the current shortfall.
The stakes are also commercial. Expanding local production would help reduce imports and ease pressure on the trade balance. According to Agriculture Minister Gabriel Mbairobe, palm oil imports, estimated at around CFA100 billion each year, rank among the products that most heavily weigh on Cameroon’s trade deficit.
Amina Malloum