Edible oil companies complain over lack of inputs, market chain problems

The Ethiopian Edible Oil Producers Manufacturing Industry Association said that lack of raw materials and complex market chain are the main challenges of their operations.

The Association consists of more than 100 edible oil companies. Mohammed Youssouf, Vice Board Chairperson of the Association told Origins Media that major problems which are hindering productivity of the factories have been identified through survey.

Accordingly, lack of inputs is the foremost hindrance followed by unable to get receipts to purchase oil seeds, tax policy of the government and shortage of finance have been identified as major impediments by the survey, Mohammed said.

To solve the problems, oil seeds farm expansion and enabling the companies to have their own farmlands are the important steps to be taken to address shortage of raw materials, according to Youssouf.

“Importing oil seeds from neighboring countries is a best option to address lack of raw materials,” he said.

“Even if Ethiopia ceases export of oil seeds and used oil seeds for edible oil production that only covers over 25 percent of what companies want,” he added.

Currently, there are over 1,000 companies that are registered by the Ministry of Trade and Regional integration (MoTRI) to process oil in the country, and over 912 companies import cooking oil.