The Ministry of Food and Agriculture (MoFA) has announced bold steps to close Ghana’s widening palm oil production shortfall under the Ghana Tree Crops Diversification Project (GTCDP).
According to MoFA, annual domestic consumption of palm oil has climbed to about 250,000 metric tonnes, while national production lags at roughly 50,000 metric tonnes.
This 200,000-tonne gap, officials warn, poses major economic and industrial challenges, adding to Ghana’s food import bill, which already exceeds US$3 billion annually.
The ‘Red Gold’ Initiative
To tackle the gap, government has introduced the “Red Gold” initiative, which seeks to provide 1.5 million oil palm seedlings to farmers and encourage participation in out-grower plantation schemes.
The initiative also aims to stimulate higher yields through improved seedlings, expanded cultivation, and stronger market linkages.
Under MoFA’s Medium-Term Expenditure Framework (2025–2028), government has also committed to developing a national palm oil industry policy that will offer incentives for growth across the value chain, from cultivation to processing and exports.
Industry and Regulatory Actions
The Tree Crops Development Authority (TCDA) earlier this year introduced new regulations for palm oil imports to address the influx of substandard products that undermine local processors and compromise consumer safety.
While designed to protect the domestic industry, stakeholders say the rules will also encourage farmers and processors to scale up production and reduce reliance on imports.
Trade data from the Oil Palm Development Association of Ghana (OPDAG) reveals that Ghana imported US$1.17 billion worth of oil palm between 2019 and 2021.
The Association argues that unless artisanal millers adopt modern farming and processing techniques, domestic consumption will continue to outweigh production.
“On average, a standard palm farm should yield 18–25 tonnes of fresh fruit per hectare annually, but small-scale producers often harvest less than six tonnes. Similarly, extraction rates should reach 20–25%, but artisanal mills average only 11–13%,” OPDAG noted.
The group has called for greater investment in training, mechanisation, and adoption of best practices, insisting that intensification alone could raise national output by at least 50%.
Regional Context
Ghana’s palm oil struggles reflect a broader African trend. Once the continent’s leader in palm oil, Nigeria lost its dominance after shifting focus to crude oil.
Today, Côte d’Ivoire stands as Africa’s only net exporter of palm oil, highlighting both the challenges and opportunities for Ghana to expand production.
Economic Opportunity
Analysts note that bridging the production gap could not only reduce Ghana’s dependence on costly imports but also create jobs, enhance food security, and open new avenues for agro-industrial exports.
With the government’s renewed focus, stakeholders say the success of the “Red Gold” initiative will hinge on effective collaboration between farmers, processors, regulators, and investors.
