Collins Sefa The Ministry of Food and Agriculture (MoFA) has rolled out fresh measures under the Ghana Tree Crops Diversification Project (GTCDP) aimed at addressing the growing gap between palm oil production and consumption in the country.
According to the ministry, Ghana consumes about 250,000 metric tonnes of palm oil annually, yet local production stands at only 50,000 metric tonnes. This imbalance, MoFA says, is contributing significantly to the country’s food import bill, which has now exceeded US$3 billion.
Boosting Production Through the ‘Red Gold’ Initiative
MoFA emphasised that the palm oil industry requires urgent investment and transformation. To tackle the shortfall, government will implement the ‘Red Gold’ initiative, which includes:
-
Distribution of 1.5 million improved oil palm seedlings to farmers.
-
Support for out-grower plantation schemes.
-
Stronger market linkages to help smallholder farmers scale up production.
Under the Medium-Term Expenditure Framework (MTEF) 2025–2028, government will also develop a national palm oil industry policy to provide incentives across the value chain, from cultivation to processing.
New Regulations to Curb Substandard Imports
In July, the Tree Crops Development Authority introduced new regulations on palm oil imports to reduce the influx of substandard products. The Authority explained that many imports lacked proper scrutiny, undermining both local processors and consumer safety.
Industry stakeholders believe the regulations will help protect local markets, improve standards, and reduce reliance on imports. Trade data from the Oil Palm Development Association of Ghana (OPDAG) shows that Ghana imported US$1.17 billion worth of palm oil between 2019 and 2021 alone.
Challenges with Smallholder Production
OPDAG warns that without modernisation, domestic production will continue to lag behind demand. The association pointed out that many artisanal millers and small-scale producers operate with outdated methods and low efficiency.
-
A standard palm farm can yield 18–25 tonnes of fresh fruits per hectare annually, but smallholders in Ghana average less than six tonnes.
-
Oil extraction rates should range between 20–25% per tonne, yet artisanal mills produce just 11–13%.
“Intensification must be prioritised to boost output by at least 50%,” OPDAG stressed, urging adoption of best practices both on farms and in processing mills.
Historically, Nigeria was Africa’s top palm oil producer but lost its position after shifting focus to crude oil. Today, Ivory Coast stands as the only net exporter of palm oil on the continent, leaving most African countries—including Ghana—reliant on imports to meet domestic demand.
