MARKET DEVELOPMENT
Palm Oil: Socapalm Champions Price Raise
Palm Oil: Socapalm Champions Price Raise
12/06/2013 (Business in Cameroon) - Leader in the palm oil sector, Socapalm eyes a jump in price from 500 to 525 francs CFA per Kg, it emerged from the corporation’s ordinary general assembly last June 06, 2013 indicates Le Quotidien de l’Economie of Monday.
Socapalm wants government to increase the price of a kg of palm oil, and its General Manager, Jean Pierre Charbon and Board Chair, Michel Noulowe told the shareholders they would met the Minister of Commerce last Friday June 7, 2013, although it is yet to be confirmed.
According to the corporation, a raise in the price of palm oil would permit the company to curb its indebtedness.
Between January and December 2012 the company’s debt skipped from 3, 27 to 8 million francs CFA, Le Quotidien de l’Economie said it saw in the financial report of the company.
Besides cutting debts, Socapalm argues the price increase would nurture social and agricultural investments, notes executives of the company.
In 2012, investments by Socapalm dropped by 45%, according to the 2011 financial report. From 21 billion francs CFA, it plummeted to 12 billion.
Government’s reticence to increase the price of palm oil is linked to the high cost of living. During the extraordinary season of the palm oil sector regulatory commission, CRFHP last March, producers of the rare commodity pushed government to increase the price from CFAF 450 to 550 francs CFA for a Kg, that is a jump of CFAF 100. But the state of Cameroon in its role as a referee refused to give in.
Since February 2008, after the street demonstration against high cost of living, the government surprising condoned the increase from 300F to 450F per kilogram to the advantage of producers.
Make no mistake; the price of palm oil in the local markets never stops increasing. Now it is between 600 and 700 F in some markets, up from 500F few months ago.
Socapalm wants government to increase the price of a kg of palm oil, and its General Manager, Jean Pierre Charbon and Board Chair, Michel Noulowe told the shareholders they would met the Minister of Commerce last Friday June 7, 2013, although it is yet to be confirmed.
According to the corporation, a raise in the price of palm oil would permit the company to curb its indebtedness.
Between January and December 2012 the company’s debt skipped from 3, 27 to 8 million francs CFA, Le Quotidien de l’Economie said it saw in the financial report of the company.
Besides cutting debts, Socapalm argues the price increase would nurture social and agricultural investments, notes executives of the company.
In 2012, investments by Socapalm dropped by 45%, according to the 2011 financial report. From 21 billion francs CFA, it plummeted to 12 billion.
Government’s reticence to increase the price of palm oil is linked to the high cost of living. During the extraordinary season of the palm oil sector regulatory commission, CRFHP last March, producers of the rare commodity pushed government to increase the price from CFAF 450 to 550 francs CFA for a Kg, that is a jump of CFAF 100. But the state of Cameroon in its role as a referee refused to give in.
Since February 2008, after the street demonstration against high cost of living, the government surprising condoned the increase from 300F to 450F per kilogram to the advantage of producers.
Make no mistake; the price of palm oil in the local markets never stops increasing. Now it is between 600 and 700 F in some markets, up from 500F few months ago.