This estimate suggests about three percent annual increase in palm-oil production if the present production trend continues without any significant and rapid intervention in the next 15 years.
The estimates indicate that the present shortfall in CPO supply will continue and even grow bigger in the future. From a projected low of 32,000 m/t in 2010 it is envisaged that the deficit will hit 127,000 tonnes in 2024.
The current supply-gap for West Africa is estimated at 450,000 tonnes and is bound to grow at the same rate that Ghana’s gap is projected if not higher -- this present a huge opportunity for export if the country increases production in excess of local demand.
Over the last five years, the nation has been a net-importer of CPO with an average of 50,000 tonnes per year.
In 2005 the net import was in the order of 58,000 metric tonnes, being the difference between the 81,000 tonnes of export and the import of 139,000 tones. 2009 saw a widening of the CPO trade gap to a five-year high of 65,000 tonnes.
Mr. Kwesi Ahwoi, Minister of Food and Agriculture, launching the policy document in Accra said: “The implementation of the Oil Palm Master Plan is expected to generate 640,000 new jobs in the country’s agricultural sub-sector over the next 15 years.
“The Plan will outline the set of projects and programmes to be executed for the sector’s growth and is expected to boost the nation’s competitiveness in the global commodities market, and also enable it to meet the local demand for the manufacturing industry and local consumption.
“I entreat private financing institutions to consider participating in the industry, as equity partners to ensure that the project proposed will be developed successfully. Government will also explore additional tax incentives to support these developments.”
Mr. Ahwoi explained that the Master Plan proposes that oil-palm plantation development should occur in both the large-scale estate and small-scale independent smallholder sectors.
“There is tremendous potential for the crop in generating employment, contributing to poverty alleviation, foreign exchange earnings, food security and growth of the gross domestic products; the oil palm industry must benefit from technical, financial and institutional support, ” he said.
Joseph Baidoo-Williams, Head of Tree Crops Development Unit, Ministry of Food and Agriculture (MOFA), told the B&FT in an interview that development of the plan will make it very easy to attract donor support to enhance palm-oil production.
“The policy document is aimed at maximising development outcomes for the communities while supporting smaller businesses, as well as alleviating poverty.
“Government has identified the palm-oil sector as holding tremendous potential to create jobs and reduce poverty, and as such will give the necessary support to enable it contribute to development of the economy.
“Ghana has a very competitive location for oil-palm development compared to its immediate neighbours and the top global producers," Mr. Baidoo-Williams said.
Exports data
Among major palm-oil importers in the region are Benin and Togo, which also serve as transfer hubs to the Nigerian market. Cote d’Ivoire is indeed the only net-exporter of CPO in Africa. In the case of the Cote d’Ivoire, the recent civil war caused exports to plunge from 122,000 m/t to 89,000 m/t -- but they have since picked up in 2009 to 138,000 m/t.
The third-biggest exporter has been Ghana. Cameroon exported between 21,000 m/t to 30,000 m/t of CPO per year over the past five years.
In 2008, local production constituted 55% of the domestic consumption of 6.3 million m/t.
West African countries collectively produced 1.63 million m/t of crude palm-oil in 2010. This represents barely four percent of the global output of the commodity.
West African countries collectively produced 1.63 million m/t of crude palm-oil in 2010. This represents barely four percent of the global output of the commodity.
In Africa, Nigeria accounted for about half of the output; 16% for Cote d’Ivoire; Cameroon and DRC 10% each; and Ghana accounting for 6% as major producers. The other producers are Guinea (3%), Angola (3%), Liberia (2%), Sierra Leone (2%) and Benin (2%).
CPO produced in Africa (by implication West Africa) increased from 1.68 million m/t in 2008 to 1.75 million m/t in 2009 -- a 4.1 percent increase over the previous year’s production. Global production of palm-oil has grown tremendously over the last three decades, with Indonesia overtaking Malaysia as the largest producer in 2006.
Global production of palm-oil is estimated by USDA at 50.28 million m/t in the crop year ending September 2011.
The share of Africa in global commercial palm-oil production has dropped from about 27% in 1980 to about 3% estimated for 2011
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