Oil palm industralists urged to meet standards

The ongoing paradigm-shift in the global palm oil sector toward sustainable crop production calls for rapid implementaion of stringent policies with definite timelines to help ensure oil palm is produced sustainably, Fiifi Kwetey, Minister of Food and Agriculture, has said.

Producers of palm oil risk losing out on access to international markets and finance if they do not move to implement sustainability requirements which provide an opportunity to address the social and environmental impacts of the crop’s production. 

Though the sustainable palm oil initiative is still relatively new in Africa, many growers are beginning to adopt the best practice guidelines contained in the standard.

“Consumers worldwide are increasgly demanding assurances that the palm oil in the products they buy from the supermarket shelves -- whether it is a cake of soap, a bar of chocolate, or a packet of biscuits -- is produced in a manner that safeguards the environment, protects biodiversity and does not infringe on the right of workers and indigenous and local people,” Minister Kwetey told Africa’s sustainable palm oil forum in Accra that was spearheaded by Solidaridad West Africa.

The forum, supported by Proforest and the Roundtable on Sustainable Palm Oil (RSPO), brought together stakeholders including oil palm growers, civil society organisations, financial institutions, development partners, governments and key experts to share knowledge and experiences in the oil palm value chain.

The event was under the theme ‘Sustainable Palm Oil in Africa: Getting it Right from the Start’, and was aimed at offering stakeholders a common platform to share experiences and ideas to address challenges in the sector and chart a common path toward achieving sustainability.

Minister Kwetey underscored the need for implemention of sustainable sourcing policies with definite timelines for admitting only certified sustainable palm oil into production lines and certification bodies and standards such as the RSPO, which will help to ensure that oil palm is produced sustainably.

The implication, he said, is that non-certified palm oil will eventually be excluded from international palm oil trade, resulting in less of much-needed export revenue to producer countries, and less income to growers and millers if the necessary measures are not implemented. 

He observed that for Africa to remain competitive in the rapidly-changing palm oil market, there is a need for conscientious efforts by all players to mainstream sustainability into the palm oil production and supply chain; and that small growers and artisanal millers, who contribute about 80% of Africa’s total annual output, must be repositioned to play their roles in a more sustainable manner.

At the end of June 2015, Africa accounted for less than 1% of the total oil palm production area certified globally by RSPO; with plantations in Ghana accounting for 0.66% and in Madagascar 0.07% of globally certified production areas. Africa’s contribution to the certified sustainable palm oil market is even much less.

Salahudin Yaacob, RSPO’s Technical Director, speaking on ‘The RSPO in Africa’ explained that investment in the palm oil sector in Africa is growing, with the potential of improving local economies and reducing rural poverty; and that future growth in the sector is expected to help close the palm palm oil deficit and position the region to be a net exporter of the crop.

He indicated that certification for the palm oil industry is yet to catch on in Africa, as currently less 1% of the total global certified area is on the continent.

“Africa has seen significant investments in the oil palm sector over the past decade. These include new plantation establishment, rehabilitation of abandoned and derelict plantations, investments in more efficient mills and refineries, as well as innovative smallholder initiatives.

“The growing oil palm sector could contribute significantly to economic development and help alleviate rural poverty.  At the same time, the expanding sector could come with significant social and environmental impacts unless adequate safeguards are put in place to conform to international market certification standards,” Yaacob said.

Currently, Solidaridad West Africa and Proforest -- non-governmental organisations -- are providing support and creating awareness on RSPO in the oil palm sector aimed at ensuring sustainable development of farmers and production systems in West Africa, through enhancing value chains of fresh and processed agricultural commodities.

Mr. Delle Kpebessan, Regional Programme Manager Solidaridad, said governments in Africa must create the enabling environment to revive the oil palm industry -- as with best management practices, yields could increase from the average 2.5 tonnes per hectare to between 20 tonnes and 25 tonnes per hectare.

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% 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 stands at approximately 800,000 m/t -- leaving an estimated growing supply-gap of well beyond 850,000 m/t.