Cameroon’s palm oil production experienced a steep decline in the second quarter of 2025, with crude palm oil output dropping 39.7% quarter-on-quarter to 46,826 tons, according to the Economic Outlook Note published by the Ministry of Finance. The sharp decrease underscores persistent structural and operational challenges within the sector.
Seasonal fluctuations partially explain the slowdown, as the first quarter is traditionally the peak production period. However, the decline also reflects broader structural issues. Compared with the same period in 2024, production fell by 16%, while the first half of 2025 saw a 12.7% year-on-year contraction in the sector.
The Ministry of Finance highlighted aging plantations and operational difficulties faced by Socapalm, the country’s main palm oil producer, as key factors. Socapalm struggles to collect palm nuts from independent growers, who have increasingly demanded higher purchase prices. These issues have compounded the sector’s long-standing productivity challenges.
Other systemic constraints continue to weigh on the industry. Low plantation yields, limited investment in modern cultivation techniques, and difficulties in land acquisition for expansion projects hamper growth. Recurring disputes with local communities over land rights further restrict the development of new plantations.
The sector also faces supply chain leakages, including fraudulent exports that divert part of the domestic output to international markets illegally, worsening domestic supply imbalances and putting pressure on local prices. Analysts warn that without targeted interventions to modernize plantations, improve collection mechanisms, and strengthen regulatory oversight, Cameroon’s palm oil industry risks sustained underperformance despite strong domestic and regional demand.
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