Spio-Garbrah deepens calls for oil-palm development board

A strong proposal has been made for the establishment of an independent apex body to oversee development of the country’s oil-palm industry.

“The time has come for the country to establish a specialised board made up of industry experts to drive the sector’s growth and to meet international best practice,” said the Minister of Trade and Industry Mr. Ekwow Spio-Garbrah, adding that the establishment of a Palm Oil Development Board (PODB) will oversee policies, regulations, and possible legislation in the industry.

He proposed a national industry stakeholder’s workshop that will include industry experts, operators, consultants, exporters and government officials to help come out with a master-plan to guide the sector’s development.

“The first step will be a palm oil stakeholder’s forum to analyse and outline needs of the various actors, including funding options. It will also seek to examine the growth paths of countries such as Brazil, Malaysia, Indonesia and Ivory Coast to guide the PODB’s mandate and the oil-palm’s value chain to drive growth.”

Mr. Spio-Garbrah was speaking at the official launch of the Oil Palm Development Association of Ghana (OPDAG) in Accra. 

The launch was supported by Solidaridad West Africa in collaboration with the Business Sector Advocacy Fund and Netherlands Embassy, was aimed at effectively promoting and ensuring growth and development of the sector.

According to the Food and Agriculture Organisation (FAO), world production of palm oil is expected to increase from 45 million tonnes to about 60 million tonnes by 2020.

Africa, which holds 30 per-cent of all oil palm agricultural lands, regrettably produces less than 10 percent of the total world production of palm oil -- with Ghana contributing a distant below-1 percent (0.8 percent).

In the West Africa sub-region, the total crude palm oil market demand stands at approximately 1.6 million m/t.

However, aggregated capacity in the region approximately stands at 800,000 m/t, leaving an estimated growing supply-gap of well beyond 850,000 m/t.

 “I must say that these supply shortfalls and the breadth of palm oil based-products -- such as laundry products, soap, domestic and industrial oils and cosmetics -- jointly provide a significant growth opportunity for the oil-palm industry in Ghana,” he said.

In Ghana, an estimated total land area of 305,758 hectares is cropped to oil-palm with a production level for palm oil of under 300,000m/t -- leaving a supply deficit of 35,000mt. 

Mr. Spio-Garbrah said with increasing demand trends, especially in the healthcare, pharmaceutical and body lotion industries, the deficit could hit more than 100,000m/t in the not too distant future.

Mr. Spio-Garbrah said because of prospects for the oil palm sector, the Ministry of Trade and Industry initiated and supported many programmes to engender plantation expansion and increased palm oil production for accelerated industrial growth.

By the end of 2010, approximately 40 - 45,000 hectares had been developed under the plantation expansion programme that was then known as the PSI-Palm Oil.

He said the anticipated benefits of the programme have not been fully achieved, owing principally to inefficient coordination of actors within the palm oil value chain and the nascent state of downstream businesses.

He said the ministry is optimistic that the palm oil industry will play a significant role in improving the country’s balance of payments while creating job opportunities with massive rural employment. 

It is in this regard that palm oil was placed prominently among the 11 non-traditional export commodities and services selected in the National Export Strategy.

He pledged government’s support for the Oil Palm Development Association of Ghana, adding that the ministry will work with other stakeholders to transform the oil palm industry.

Dr. Nana Otuo Siriboe II, a Paramount Chief of Ashanti Juabeng Traditional Area who is also the Patron of the OPDAG, urged government and other relevant stakeholders to prioritise plantation development and processing of oil-palm to enhance industrialisation of the national economy. 

“Oil palm, like cocoa, if given the needed support will be among the highest job-creation avenues for the youth. There is enough land to embark on commercial production, but there is no infrastructural and microfinance support to help the industry grow and become sustainable.’

He therefore urged the government to critically consider the sector as a major job-creation avenue, and hence accord it the needed support and commitment to ensure its development and sustenance.

Nana Siriboe stated that next to cocoa, oil-palm employs the highest number of people; with more than 300,000 people dependent on the sector for their livelihoods.

The Minister for Agriculture, Mr. Fifi Fiavi Kwetey, officially launching the Association in Accra said government's vision for the development of tree-crops is holistic and aims at promoting sustainable growth for the entire sub-sector, taking into account all the differences between crops and the various production areas.

He observed that oil-palm supply value chain production if developed will see increased production and productivity that will promote investment and increase processing capacities -- improving marketing; promoting sustainable practices for environmental protection; and supporting research and development.

He added that currently the agriculture sector employs over 60 percent of the country’s workforce, calling for perseverance in order to move ahead.  He said worldwide demand for palm oil including regional demand is also increasing, thereby offering the possibility of exporting oil-palm products from the country.

The Royal Dutch Ambassador in Ghana, Hans Docter, charged the association to strive hard as the oil-palm business has a lot of financial gains and can generate enormous job employment.

Mr. Isaac Gyamfi, managing director of solidaridad West Africa, said the goal is to increase productivity and profitability of small to medium scale enterprises, farms and mills in the oil-palm sector -- initially in Ghana and thereafter replicated in other West African countries.

Mr. Samuel Avaala, President of the OPDAG, said to ensure promotion and development of the oil palm industry, the Association will undertake strong consultations and advocacy work to ensure that land acquisition -- which is a major constraint to production -- becomes attractive to investors and growers to expand their production.

He said the Association will promote the adoption of best management practices by smallholder farmers to increase their farm yields, and also ensure that farmers adhere to approved sustainable agricultural practices.

The Oil Palm Association of Ghana is a business registered under the laws of Ghana and formed under the umbrella of oil-palm farmers, millers and end-users, while its members comprise all relevant stakeholders and value chain actors in the oil-palm industry of Ghana. They include small and medium to large-scale oil-palm growers and processors, refiners, manufacturers,, marketers, suppliers and distributors along the palm-oil supply chain.