Oil Palm farmers and processers in the Western Region have called on the government to establish an oil palm board to address the sector’s needs.
The board, they noted, would help to resolve the many challenges in the sector. Thereby, optimizing the huge potentials in the oil palm value chain.
The farmers made the call at the Agricultural Policy Research in Africa (APRA) Project dissemination workshop organized by ISSER.
The Workshop
The workshop discussed a project by a team of researchers from the University of Ghana who analysed the impact and outcomes of agricultural commercialization on rural poverty, empowerment of women and girls, food and nutrition security in Ghana and six other Sub-Saharan African countries.
Mr Evan Koomson, a farmer from Aketanchie in the Ahanta West Municipal, pointed out that the oil palm value chain had huge potentials. However, the sector faced several barriers. These include the non-availability of ready market, the land tenure system and activities of oil and gas companies. He also noted lack of cooperative associations and board as a challenge of the sector.
He said because most oil palm farmers operated under a land tenure system, land-owners easily take away the lands from them when they get richer tenants like oil and gas companies and illegal miners.
Mr Koomson pointed out that the only solution to the problem is for the government to establish a board like COCOBOD. This board, he said, would effectively monitor and handle the challenges confronting the oil palm industry.
Dr Kofi Takyi Asante, Research Fellow at ISSER, who took the participants through the research findings, explained why oil palm was selected for the research. He said it was considered a national priority crop because of its potential to reduce poverty and the wide geographical coverage.
Dr. Asante pointed out that currently, one out of 10 industrial crops, the oil palm was the second most important. He said output of oil palm grew from 680,781 metric tonnes to 1,896, 760 metric tonnes output between 2007-2019. This created about two million jobs across the value chain, he added. Dr Asante said oil palm has a large growth potential. However, Ghana was unable to meet the global demand for the product.
The Research and its findings
Specifically, the research explored farmers who engaged in oil palm commercialization arrangements. It also analysed the poverty implications of participants in the arrangements and how these outcomes differed across different groups.
Furthermore, it also explained the relationships between different arrangements and resource allocation to other crops. Lastly, the research examined whether the different arrangements have a varying effect on other farm and non-farm enterprises.
According to Mr. Asante, the research sampled 726 farming households from 20 Communities in Mpohor and Ahanta West. On oil palm commercialization, the research found out that 27 per cent farmers had direct sales to oil palm companies. 33 per cent farmers sold their products through agents while 29 per cent independently sold on the local market. Also, 11 per cent processed into palm oil, alcohol and soap.
Moreover, 5.2 per cent of the farmers who had direct sales to Oil Palm Companies (OPCs) had more capital.
On livelihood outcomes, the research showed that farmers who sold their produce directly to the OPCs earned more. However, those who sold through agents and independently sold on local markets earned less.
Furthermore, the research revealed that there was a huge potential for enhancing the sector’s productivity, smallholder performance and welfare access to financial resources.
About APRA
APRA is a five-year research programme, building on more than a decade of research and policy engagement work by the future Agriculture consortium. It is to provide new information and an insight into different pathways of Agriculture commercialization. Also, to assess their impacts and outcomes on rural poverty, women empowerment, food and nutrition security in sub-Sahara African.
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