The Government of Ghana’s introduction of a minimum price policy for fresh fruit bunches (FFB) in the oil palm sector has been recognized as transforming the livelihoods of smallholder farmers across the country.
This is according to an industry report published by Solidaridad, themed Palm Oil Barometer 2025.
The report cited by The High Street Journal indicates that the policy introduced by the government in 2023 is delivering stability and enhancing the dignity of smallholder farmers in the oil palm farming.
The policy is also recognized as ending the years of exploitation when mills and aggregators offered any price to purchase the FFB to the disadvantage of farmers.
The new pricing model, which was spearheaded through a collaboration between the Tree Crop Development Authority (TCDA), the Oil Palm Development Association of Ghana (OPDAG), and supported by Solidaridad, has brought new hope to rural farming communities that have long struggled under unpredictable and often unfair market conditions.
For instance, Martin Ola, a smallholder in the Western Region, confessed that the policy has been nothing short of life-changing. According to Solidaridad, Martin Ola recounts how his minimum income was tied to the benevolence of the aggregators or mills and was often erratic.
This, he says, made it difficult for him to plan. However, the new arrangement has made it possible to predict his income and effectively plan with it.
Under the new model, aggregators and mills are legally required to pay no less than the government-set monthly minimum price for FFB. This has not only brought predictability to farmer incomes but also injected a new level of transparency and accountability into Ghana’s palm oil supply chain.
As of June 2024, the report indicated that implementation was ongoing smoothly. According to Solidaridad, farmers across major oil palm growing regions are reporting better earnings, enabling them to reinvest in their farms, cover household expenses, and plan for their children’s education with greater confidence.
“The Solidaridad Ghana team noted that implementation was going well. Farmers now receive higher prices and don’t have to accept arbitrary pricing set by aggregators and mills. The mills have also been supportive of the approach thanks to the level of transparency,” parts of the report reads.
The success of the FFB minimum price policy in Ghana is now being hailed as a model for agricultural reform across the region. It underscores the power of well-crafted regulation to protect vulnerable producers, correct market imbalances, and build a more equitable agricultural economy.
