Editorial: Tackling oil palm production deficit

The Ministry of Food and Agriculture (MoFA), under the Ghana Tree Crops Diversification Project (GTCDP), is trying  to tackle the widening gap between palm oil production and consumption in the country.

Annual domestic consumption of palm oil has reached approximately 250,000 metric tonnes, far outstripping domestic production levels. This imbalance poses both economic and industrial challenges, necessitating targetted interventions to boost output.

GTCDP is expected to stimulate production by promoting better seedlings, expanding cultivation and creating stronger market linkages for producers. In fact, increased investment, improved farming practices and support for smallholder farmers will be critical in bridging the supply gap.

Notably, annual production of the crop is estimated at 50,000 metric tonnes – contributing to the country’s huge food import bill, currently in excess of over US$3billion.

Under the Medium-Term Expenditure Framework (MTEF) 2025-2028 of MoFA, immediate plans to address challenges in the palm oil production value chain have been outlined.

This includes the national palm oil industry policy to offer incentives for growing palm and developing the industry’s entire value chain.

Dubbed the ‘Red Gold’ initiative, government intends to provide 1.5 million oil palm seedlings to farmers and encourage them to actively participate in out-grower palm plantation schemes.

Additionally, in July this year the Tree Crops Development Authority introduced new regulations for palm oil imports. The new regulations are partly to curb substandard imports as  products coming into the country do so without proper scrutiny, which affects local processors and consumer safety.

Trade data obtained from the Oil Palm Development Association of Ghana (OPDAG) indicate that the country imported some US$1.17billion worth of oil palm between 2019 and 2021.

Currently, Ivory Coast is the only net exporter of palm oil on the continent.

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