Oil palm industry faces 50,000 metric ton deficit

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By Juliet Aguiar DUGBARTEY

Ghana’s oil palm industry is grappling with a significant production shortfall, raising concerns about the sector’s long-term sustainability and competitiveness.

Despite an annual output of approximately 350,000 metric tons, domestic demand has surged to around 400,000 metric tons, creating a deficit of about 50,000 metric tons each year.

Experts warn that this persistent gap not only undermines Ghana’s goal of self-sufficiency but also places local processors at a disadvantage, forcing them to rely on expensive imports to fill the supply gap.

Urgent reforms required

Dr. Isaac Danso, Director of the Oil Palm Research Institute at the Council for Scientific and Industrial Research (CSIR), described the situation as a “wake-up call” for all stakeholders.

In an interview with the Business & Financial Times (B&FT), he stressed the need for a comprehensive overhaul of the value chain from seed production to processing.

“To meet national demand and reduce dependence on imports, we need to strengthen every aspect of the value chain. Access to certified, true-to-type hybrid seedlings is critical. Without it, even the best farming practices will not deliver the desired yields,” he continued.

One of the main constraints, Dr. Danso noted is the widespread use of substandard and adulterated seedlings, which often lead to poor harvests and discouraged farmers.

In response to these challenges, he said, government has established the Tree Crop Development Authority to regulate and certify all players within the oil palm sector. This includes seed producers, nursery operators, farmers, and processors, ensuring that only quality inputs and best practices are applied across the industry.

Dr. Danso highlighted the role of the CSIR’s Oil Palm Research Institute, which was established in 1964 and has since developed over 1,200 technologies aimed at enhancing productivity. “The Institute continues to work with both public and private partners to promote the use of high-quality planting materials and sustainable agronomic practices,” he added.

He further reaffirmed CSIR’s commitment to supporting the industry through technical expertise, training, and the dissemination of research findings. “We are ready to partner with stakeholders to help boost national yield and close the production gap,” he concluded.