International Research Journal of Plant Science (ISSN: 2141-5447) Vol. 4(6) pp. 158-167, June, 2013 Available online http://www.interesjournals.org/IRJPS Copyright © 2013 International Research Journals Full Length Research Paper Oil Palm and Palm Oil Industry in Ghana: A Brief History Danyo Gilbert Council for Scientific and Industrial Research, Oil Palm Research Institute, P. O. Box 74, Kusi-Eastern Region, Ghana. E-mail: gilday2000@yahoo.com; Tel: +233-(0)243-143-403. Abstract A brief history of the Oil palm in Ghana was carried out, to highlight the importance of oil palm to the economy of Ghana, policy interventions of central governments, the key actors and operations in the oil palm sector, trends and constraints, as well as prospects for commercial oil palm cultivation and palm oil industry in Ghana. The African oil palm (Elaeis guineensis Jacq.) is the most important member of the genus Elaeis in terms of production and economic yield. It produces approximately 23 % of the world’s supply of vegetable oils in the form of palm oil. In Ghana, the oil palm has assumed increasing importance as a non-traditional export commodity. In the hierarchy of economic importance, it is next to cocoa in the agricultural tree crop sector of the economy. An estimated total land area of 305, 758 hectares is under oil palm cultivation in Ghana. Commercial production is restricted predominantly to the forest zones whose climates are ecologically suitable for oil palm cultivation. Five main types of actors are recognized in the oil palm and palm oil industry in Ghana: (1) Large industrial plantations with large-scale processing mills and a network of smallholder and out-grower farmers; (2) Mediumscale plantations with medium-scale industrial mills with a network of out-growers; (3) Small private farmers cultivating less than 10 hectares; (4) Small-scale processors using semi-mechanised mills with capacities of about 6–10 tonnes per day; and (5) Secondary processors who process crude palm oil into refined olein. The industry is supported with scientific research and technical innovations by the Oil Palm Research Institute (OPRI) of the Council for Scientific and Industrial Research (CSIR). The prospects of oil palm cultivation to Ghana’s socio-economic advancement are greater than presently appreciated, if more investments (capital input, prioritized research, and value-addition) are made into its cultivation and industry by governments and corporate bodies alike. There are, however, pertinent socio-economic and environmental issues that if not addressed, may hinder future commercial oil palm plantation development and palm oil industry in Ghana. Keywords: Oil Palm, Plantation Development, Palm Oil industry, Value-addition, and Biodiversity loss. INTRODUCTION The cultivated oil palm was first illustrated by Nicholas Jacquin in 1763, hence its name, Elaeis guineensis Jacq. There is fossil, historical, and linguistic evidence for an African origin of the oil palm (Hartley, 1988). Fossil pollen, similar to the oil palm as it grows today, has been found in Miocene and more recent strata in the Niger Delta. The palm spreads from 16°N in Senegal to 15°S in Angola, and eastwards to Zanzibar and Madagascar. The best production levels are attained in the high rainfall areas between 7°N and 7°S from the equator (Verheye, 2002). The real oil palm belt in Africa runs through the southern latitudes of Guinea, Sierra Leone, Liberia, Ivory Coast, Ghana, Togo, Benin, Nigeria, Cameroun, and into the equatorial regions of Equatorial Guinea and the Congo. The northern limit of this belt varies with the Danyo 159 isohyets of 1200 mm rain per year and with the topography of 400 m altitude. The extension of oil palm in East Africa is irregular. Most of the East and South-East Africa is too dry, and, therefore, the crop appears only at altitudes below 1000 m near lakes or watercourses with reasonable rainfall. Its presence on the eastern coast of Madagascar is due to a local microclimate (Verheye, 2002). From its centre of origin (Gulf of Guinea area), the palm has spread to other developing regions with similar climates particularly, Latin America (Brazil, Honduras, and Ecuador), Southeast Asia (Indonesia and Malaysia), and finally Oceania (Papua New Guinea) (Jacquemard, 1998). The oil palm (Elaeis guineensis) is the most important member of the genus Elaeis in terms of production and economic yield (Jones and Hughes, 1989). For each hectare of oil palm, harvested year-round, the annual production averages 10 tonnes of fruits, yielding 3,000 kg of pericarp oil and 750 kg of seed kernels yielding 250 kg of high quality palm kernel oil as well as 500 kg of palm kernel meal (http://www. Wiki/File: Elaeis_guineensis). Palm fronds and kernel meal are processed for use as livestock feed. It produces approximately 23 % of the world’s supply of vegetable oils in the form of palm oil (Paranjothy, 1989), Table 2. Ghana’s first international commercial trade in oil palm took place in 1820; a direct result of demand generated by the industrial revolution in Europe (Agbodeka, 1992). The British colonialist deliberately encouraged the palm oil trade, and palm oil became the principal cargo for former slave traders and ships after the abolition of the slave trade. Starting from the wild oil palm harvesting, oil palm evolved into an agricultural crop and plantations were established by 1850. This led to palm oil becoming the principal export from the then Gold Coast. By the 1880s, palm oil accounted for 75% of the Country’s export revenue. However, the discovery of mineral oil that could replace palm oil and the opening of European oil palm plantations in Indonesia and Malaysia, led to the collapse of the oil palm industry in the Gold Coast (Adjei-Nsiah et al., 2012). Malaysia which is currently a major player in the world palm oil market, started the establishment of oil palm plantations with planting materials from Ghana. Europeans in Malaysia, also a British colony, travelled to the Sese oil palm estate established in the 1900s by Alexander Cecil Goff at Salt Pond in the Central Region of Ghana, to learn about oil palm cultivation, taking away seeds, and production techniques. Oil palm estates owned by Europeans were established in Malaysia from 1917 onwards (Fold et al., 2012). By the 1860s and 1870s world oil palm price declined and the Gold Coast oil palm industry could not produce competitively. But since national independence in 1957, various governments have promoted oil palm as an industrial crop for local consumption and export (AdjeiNsiah et al., 2012). It is estimated that 243,852 tonnes of palm oil is being produced presently (Agbodeka, 1992). Ghana currently has a supply deficit of approximately 35,000 tonnes of palm oil. The estimated deficit in the ECOWAS sub-region is 850,000 tonnes. This paper recounts the history of oil palm cultivation in Ghana, highlights the economic importance of oil palm to the economy of Ghana, policy interventions of central governments, the key actors and operations in the oil palm sector, trends and constraints, and evaluates prospects for both commercial oil palm cultivation and the palm oil industry in Ghana. Botany of the Oil Palm (Elaeis guineensis) The oil palm is a monocotyledonous crop. Mature trees are single-stemmed, and grow 20 to 30 m tall. The early growth from the seedling results in the formation of a wide stem base. A trunk is not formed until three years old when the apex has reached full diameter in the form of an inverted cone, after which intermodal elongation takes place. Roots arise from the base of the hypocotyls and later from the basal bole of the stem (Verheye, 2002). The palm is monoecious with separate male and female flowers on the same plant. The flowers are produced in dense clusters; each individual flower is small, with three sepals and three petals. Crossfertilization is through successive cycles of male and female flower production. The palm fruit takes five to six months to mature after pollination. The palm fruit is reddish, about the size of a large plum and grows in large bunches. When ripe, each fruit bunch weighs 40-50 kilogram (Figure 1). The pulp of the fleshy fruits yields solid, edible, orange-red oil commonly called palm oil. The endosperm/kernel yields clear, solid, yellowish edible oil called palm kernel oil (Jacquemard, 1998). The productive commercial life of the crop is between 20 and 30 years after which harvesting becomes increasingly difficult and yields decline slowly (Danso et al., 2008). History of Oil Palm Cultivation in Ghana Starting from the wild oil palm harvesting, oil palm evolved into an agricultural crop and plantations were established by 1850 (Agbodeka, 1992). In fact, one the earliest oil palm plantation and mill was established by Alexander Cecil Goff in the 1900s at Salt Pond, near 160 Int. Res. J. Plant Sci. Figure 1. Mature Oil Palm-bearing fruits Cape Coast in the Central Region of Ghana. The aborted legislation of the British colonial government in Ghana to take control over ‘idle’ lands, left intact the pre-colonial communal land tenure arrangements (legislation in the late 1890s, which sought to vest in the British Crown all unoccupied lands, forest lands, and minerals (Gyasi, 1996). The land tenure system in southern Ghana evolved in response to cash crop production by smallholder and small capitalist farmers, but not in ways that favour large-scale agricultural production (Amanor, 2001). Since the colonial administration had not appropriated any large tracks of land, post-independence governments in Ghana did not have ready stocks of land available to use in large-scale agriculture. When the post independent governments in Ghana decided to support plantation production generally, and oil palm in particular, they had to forcefully expropriate land. These forced acquisitions generated serious problems for the largescale oil palm estates. The plantation system therefore, failed to gain a significant hold (Gyasi, 1996). As a result, the cultivation of oil palm in Ghana is dominated by private small-scale farmers who cultivate about 80 % of the estimated total land area of 305, 758 hectares under oil palm cultivation (Fold et al., 2012), leaving the country with a small palm oil industry, by global standards, tailored for the domestic market but looking towards the West African regional market while being unable to compete on the international market (Table 2) (Fold et al., 2012). Commercial production of oil palm in Ghana is restricted predominantly, to the forest zones whose climates are ecologically suitable for its cultivation. van der Vossen (1969) using values of mean annual water deficit delineated in broad terms, this area into three climatic zones: climatically optimum (150 mm water deficit), favourable (250 mm water deficit), and suitable (400 mm water deficit) for economic oil palm cultivation. The areas described by van der Vossen cover six regions namely, Volta, Eastern, Central, Western, Ashanti and Brong Ahafo, with rainfall and temperature being the determining factors. In Ghana, the cultivated oil palm (Elaeis guineensis Jacq.) exists in three different fruit forms: dura, tenera, and pisifera. The dura has a thick shell; tenera has a relatively thin shell; and the pisifera is shell-less (Sparnaaij, 1969). Beirnaert and Vanderweyen, (1964) established the genetic relationship between these fruit forms. Tenera, the monofactorial hybrid of the dura and pisifera palms is the most commercial variety. This high yielding progeny forms the bulk of all planting materials for plantation development in Ghana. In Ghana, oil palm cultivation has a peak season from April to November and a lean season from December to March, which corresponds with the rainy and dry seasons. About 70 percent of annual yield occurs during the peak season. There is a wide variation in the productivity of oil palm in Ghana. The highest productivity of 20 tonnes/ha have been recorded by plantations in valley bottoms. The large estates achieve productivity levels of between 10–15 tonnes/ha. Smallholders and out growers produce between 7–10 tonnes/ha while private small-scale farms produce about 3 tonnes/ha (Table 1). Four of the commercial oil palm estates created by Post-independence governments in the 1960s and 1970s are still viable today (Table 1). They are Ghana Oil Palm Development Company (GOPDC), Twifo Oil Palm Plantations (TOPP), Benso Oil Palm Plantations (BOPP), and Norpalm Ghana (Fold et al., 2012). These were fully or partially privatized in the 1990s and early 2000s, as Danyo 161 Table 1. Major Commercial Oil Palm Companies and Areas Cultivated in Ghana. Company Nucleus (ha) GOPDC Ghana Oil Palm Development Company Ltd. TOPP Twifo Oil Palm Plantations Ltd BOPP Benso Oil Palm Plantations Ltd. NORPALM Norpalm Ghana Ltd JUABENG Juabeng Oil Mills AYIEM Ayiem Oil Mills GOLDEN STAR (A mining company) TOTAL Total (ha) 8000 Outgrower (ha)/ Small holder 14, 352 22, 352 Milling Capacity (Tonnes/hour) 60 4, 234 1, 690 5, 924 30 4, 666 1, 650 6, 316 27 4, 000 - 4, 000 30 424 1, 100 1, 524 15 250 - 250 10 - 720 720 - 21, 574 19, 512 41, 086 172 Source: Directorate of Crop Services, MoFA (2010). part of the structural adjustment policy in the 1980s (Adjei-Nsiah et al., 2012) These commercial estates are primarily involved in oil palm plantation development; harvesting and processing of fresh fruit bunches (FFBs) in the mill to produce crude palm oil (CPO), palm kernel oil (PKO); and palm kernel cake (PKC). Refining/ fractionation of CPO into higher value products such as olein and stearin (major products) and refined bleached deodorized oil and palm fatty acid distillate, as additional, smaller volume products (Stenek , 2011). Perhaps, the biggest shift in policy towards the oil palm industry by any post-independence government was initiated by the New Patriotic Party (NPP) in 2003. The NPP government supported the expansion of oil palm cultivation and palm oil processing as one of four Presidential Special Initiatives (PSI), to meet the large unmet demand in Ghana and the large markets in the West African region (PSI-OP, 2003). The Presidential Special Initiatives (PSI) aimed at creating new pillars of growth. The oil palm initiative in particular, aimed at building rural industry, creating rural employment and empowering smallholder farmers (Fold et al., 2012). The approach was partly shaped by past experiences. Expropriating land was not an option, given the problems it had caused in the past and given ongoing land litigation after privatization of the large estates (Gyasi, 1996). The major achievements of the policy intervention s by the NPP government included: 1. 3,000 ha outgrower project in the Upper and Lower Denkyira Districts of the Central Region, funded by the Agence Francaise de Developpement (AFD). 2. Expansion of the seed nut production capacity of the Oil Palm Research Institute (OPRI) from 2 million to 5 million seed nuts per year under the World Bank sponsored Agriculture Services Sub-Sector Investment Programme (AgSSIP). 3. Cultivation of over 20,000ha small-scale farms under the President’s Special Initiative (PSI) on oil palm. The succeeding National Democratic Congress (NDC) government inspired by the moderate success of the policy initiatives of the NPP administration on oil palm, has in the year 2011, initiated the development of a master plan for the oil palm sector, as well as the development of policy, strategy and implementation manuals for tree crops with funding from AFD. 162 Int. Res. J. Plant Sci. Processing Technology Two kinds of oil are obtained from the oil palm fruit. Crude palm oil is produced from the pulp, and palm kernel oil is produced from the seed kernel. Before the 20th century, oil palm was processed into palm oil only by traditional methods; dropped ripe fruits were collected from the ground or a few ripe bunches were cut from the palm tree for manual processing into palm oil (Hartley, 1988: 694—703). With the rapid twentieth-century growth in West African exports came the introduction of simple machines to reduce labour requirements and increase oil yield from a given quantity of fruit (Hartley, 1988: 694—703). Mechanical devices worth mentioning include the Duchscher press, the perforated cylindrical metal cage, the Colin expeller, the screw press, the hydraulic press (by Stork of Amsterdam) etc. These presses provided a relatively efficient process for the step of pressing out the oily liquid during oil production. st Presently (21 century), however, there is efficient machinery in sophisticated factories converting the large volume of fruits produced on modern plantations into high standard palm oil for the global market (Kriemhild, 2000). Whatever the scale and sophistication of the process, the following main steps are required (Figure 2a and b): 1. Separation of individual fruits from the bunch either manually or mechanically; 2. Softening of the fruit flesh by steaming or boiling; 3. Pressing out of the oily liquid from the fruit pulp and; 4. Purification of the oil mostly by heating or use of artificial clarifiers. Small-scale Processing (Traditional Processing) The small-scale processes are suitable for the processing of FFB from wild oil palm groves or from smallholdings. The main objective is to produce palm oil (red oil) for traditional food use. Whole, ripe, fresh fruit bunches (FFB) are cut from the palm, divided into a few sections (spikelet), heaped together, moistened, and covered with leaves. Natural fermentation during 2–3 days loosens the fruits so that they are picked-out of the bunch sections by hand- picking. For oil production, the separated fruits are boiled with water for about 4 hours to soften the fibrous fruit pulp. The cooked fruits are emptied into a large container, which may be a pit lined with clay, an iron drum, or a large wooden mortar. They are reduced to pulp with pestles or by treading it under foot. The resulting mash may be diluted with water, and the oil skimmed off or squeezed out of the fibrous mash by hand. Finally, the oil is heated to boil out the residual water. In Ghana, an interesting operating procedure has been developed, in which the small-scale mill owner provides mill facilities to the farmers, who are then responsible for the bunch stripping and cooking of the fruit. Mill operatives carry out digesting and pressing procedures, after which the farmers take away the oil from their own fruit for clarification. The advantages for the farmers are numerous: They need no capital investment in mill equipment; there are no arguments regarding purchase price of FFB; if farmers produce high-quality Tenera fruit, they retain the full benefit; and farmers pay only a processing charge. Their net profits are higher than those obtained selling FFB, even if they employ labour to carry out their share of the processing. Large-Scale Processing Processing the large quantities of fruits produced by plantations or by large smallholder cooperatives, however, requires a progressively greater degree of mechanization and mechanical handling. Furthermore, since oil produced on a large scale is usually intended for export or for local refinery processes, the ultimate objective is a neutral oil of bland flavour and nearly white color. To attain this quality, the processes (including the handling of FFB) are designed to minimize the development of free fatty acids and oil oxidation (Figure 2a and b). Many of the oil palm mills in Ghana have fully mechanized power-operated mills. The principal steps in commercial production of palm oil today are the following (Figure 2a and b): 1. Harvest at optimum ripeness. 2. Transport FFB to an oil mill with minimum bruising. 3. Transfer FFB to sterilizing cages. 4. Sterilize FFB by steam under pressure. 5. Transfer cooked FFB to a bunch stripper. 6. Transfer fruit to a digester. 7. Press in single-screw or twin-screw press. 8. The oily discharge from the press, containing water and fruit debris, is passed through screens and settling tanks. 9. The oil phase from the settling tanks is passed to a clarifying centrifuge. The sludge, or heavy phase, from the settling tanks is centrifuged and the recovered oil returned to the settling tanks. Danyo 163 Figure 2a. Figure 2a. Schematic diagram of a modern Palm Oil processing plant Figure 2b. A modern Palm Oil processing plant with composite machinery. Credit: www.china-huasong.en.aliba.com/productgruoplist Commercialization/Oil Palm Industry Palm oil is the most versatile vegetable oil in the world due to its numerous food and nonfood uses. Palm kernel oil can also be used as an edible fat in manufactured foods. Kernel oil is also used in the oleo-chemical industry to manufacture products such as cosmetics. The structure of the palm oil industry in Ghana has been shaped by the presence of two different markets: home consumption and industrial use in domestic manufacturing (Figure 3). As a result, Ghana’s 164 Int. Res. J. Plant Sci. FUNCTIONS Consumption ACTORS Import of SUPPORTERS Export of CPO to regional markets Consumers CPO International Financial Institutions Institution Manufacturing Companies Processing (5)Secondary Processors And Equipment Suppliers Trading Large-scale Processors (2)Mediumscale Processors (4)Small-scale Processors Banks (1)Large Industrial Estate Medium-scale Farms Ministry of Food and Agriculture and CSIR Production And Bulking Small-holder Farms Out grower Farms (3)Small Private Farms Input Providers (OPRI) Figure 3. Value Chain Diagram for the Oil Palm Industry in Ghana Key: Material Flow Financial Flow industry has two sub-sectors which are largely separate (Fold et al., 2012). The industrial sub-sector consists of medium- and large-scale oil palm plantations and mills. It is characterized by more efficient technology, economies of scale, higher productivity on farms (in terms of yields of oil palm bunches) and in mills (in terms of quantity of oil extracted), and by its better quality of crude palm oil as well as further refined palm oil products, which are sold to companies for use in manufacturing. The small-scale sub-sector consists of private smallholder oil palm cultivators, who largely sell their fruit bunches to small-scale mills or household (largely manual) processors. It is characterized by low-yielding oil palm variety, low productivity of farm and mill, and low quality crude palm oil which is sold in the village or at small town markets. There are four large-scale oil palm plantations that have their own processing mills (they are Ghana Oil Palm Development Company (GOPDC), Twifo Oil Palm Plantations (TOPP), Benso Oil Palm Plantations (BOPP), and Norpalm Ghana, eight medium-scale mills (most of which have small oil palm plantations), and about 400 small-scale processing units. There are a few palm kernel mills producing only palm kernel oil, which emerged because many estates did not have palm kernel Danyo 165 processing capacities in the past. None of the mills currently operate at 100 percent capacity, mainly because of short supply of fruit bunches (Fold et al., 2012). Medium and large-scale mills sell to a small number of industrial companies, with Unilever being the dominant buyer until recently. Unilever’s factory in Ghana produces a large range of consumer goods marketed in the West African region. Unilever (formerly Lever Brothers), PZ Cussons (Patterson Zacchonis), Ameen Sangari and now GOPDC have refinery and fractionation facilities. There are a few other buyers of crude palm oil who use it in manufacturing soaps and other products. The volume of crude palm oil produced in Ghana is not enough to meet the needs of these factories, so they also import crude palm oil or substitutes for it. However, small quantities of crude palm oil are exported to European and US niche markets such as ethnic foods or organic palm oil. The three major importers of palm oil are China, India and the European Union (Table 2). Presently, there is growing interest in palm oil for use in biodiesel production. RESULTS AND DISCUSSION st The first decade of the 21 century was characterized by policy fragmentation resulting from weak state organization where groups of politicians or groups of donors support new initiatives without linking them together or learning from past experiences (Gyasi, 1996). In the 2000s, there were three government initiatives on palm oil organized by three different state institutions with no connections to each other. The Ministry of Food and Agriculture (MoFA), in collaboration with donors supported a large out grower scheme for Twifo Oil Palm Plantation (TOPP). The Presidential Special Initiatives (PSI) Secretariat was in charge of implementing the oil palm PSI described above. And the Micro, Small and Medium Enterprises (MSMES) project funded by the World Bank and implemented by a separate project unit positioned within the Ministry of Trade and Industry (MoTI) paid for value chain studies, including one on palm oil with an eye to creating interventions in that industry but with no linkages to what the PSI did. The PSI portfolio has subsequently been moved to the Ministry of Trade and Industry. Palm oil is the most versatile vegetable oil in the world due to its numerous food and nonfood uses. Palm kernel oil can also be used as an edible fat in manufactured foods. Kernel oil is also used in the oleochemical industry to manufacture products such as cosmetics. The structure of the palm oil industry in Ghana has been shaped by the presence of two different markets: home consumption and industrial use in domestic manufacturing. As a result, Ghana’s industry has two sub-sectors which are largely separate (Fold et al., 2012). The industrial sub-sector consists of medium- and large-scale oil palm plantations and mills. It is characterized by more efficient technology, economies of scale, higher productivity on farms (in terms of yields of oil palm bunches) and in mills (in terms of quantity of oil extracted), and by its better quality of crude palm oil as well as further refined palm oil products, which are sold to companies for use in manufacturing. However, the volume of crude palm oil produced in Ghana is not enough to meet the needs of these factories, so they in addition import crude palm oil or substitutes for use. In the last few years, foreign investment in palm oil mills has increased, and a few new mills (either foreign or domestic investment or both) are being built. The recent interest is attributed to the high price of crude palm oil and surging interest in oil palm for biodiesel. Lastly, the Oil Palm Research Institute (OPRI); the public research institution specializing in oil palm has been neglected over the years. The Oil Palm Research Institute is supposed to provide seedlings and technical assistance to small farmers. The oil palm PSI sought to strengthen the Institute by increasing funding for it to produce improved seed nuts and germinate them into seedlings for PSI nurseries and eventually given to smallholders. However, the PSI initiative did not support the Institute long enough for it to have really upgraded seeds. CONCLUSIONS AND RECOMMENDATIONS In summary, five main types of actors are recognized in the oil palm and palm oil sectors in Ghana. 1) Large industrial plantations with large-scale processing mills and a network of smallholder and outgrower farmers. 2) Medium-scale plantations with medium-scale industrial mills with a network of out-growers. 3) Small private farmers cultivating less than 10 hectares. 4) Small-scale processors using semi-mechanised mills with capacities of about 6–10 tonnes per day; and 5) Secondary processors who process crude palm oil into refined olein (Figure 3). The industry is supported with scientific research and technical innovations (i.e., use of improved/hybrid planting materials, optimal planting distance, soil mineral nutrition, pests, diseases and weed management as well as other scientific cultural and agronomic practices by the 166 Int. Res. J. Plant Sci. Table 2. Palm oil: production, export, import, and consumption in 2009/10 (million tonnes) Country Indonesia Malaysia Thailand Columbia Nigeria EU USA Pakistan Bangledesh India China Others TOTAL Production 21.00 17.00 1.30 0.80 0.80 3.10 44.80 Export 16.00 15.50 3.30 35.00 Source: The AOCS Lipid http://lipidlibrary.aocs.org/market/palmoil.htm. Oil Palm Research Institute (OPRI) of the Council for Scientific and Industrial Research (CSIR) (Adjei-Nsiah et al., 2012). The prospects for the oil palm plantation and industry are great. However, the anticipated gains from the industry should be balanced against the potential social and environmental impacts of commercial oil palm development and palm oil industry in Ghana. Oil palm is a valuable economic crop and provides a major source of employment. It allows many small landholders to participate in the cash economy and often results in the upgrade of the infrastructure (schools, roads, hospitals, market centres, telecommunications etc) within the catchment area. However, industrial oil palm plantation development requires the expropriation of large expanse of land; the clearing and often massive felling of trees in pristine forest concessions, culminating in land tenure conflicts (local ownership of lands) on the one hand, and ecological problems (biodiversity loss) on the other hand. Where native/customary lands are expropriated by oil palm plantations without any form of consultation or compensation, social conflict between the plantations and local residents may result. Furthermore, the potential demand for ‘skilled’ imported labour or illegal immigrants, on oil palm plantations (foreign-owned), may create concerns about the employment conditions and social impacts of these practices. Biodiversity loss (including the potential extinction of charismatic species) is one of the most serious negative Import 2.70-5.00 1.00 2.20 1.00 6.60 5.80 13.00 34.60 Library, Consumption 4.70 3.60 1.30 1.20 2.70-5.00 1.00 2.10 0.90 6.80 5.90 12.00 44.70 accessed at effects of oil palm cultivation. Large areas of already threatened tropical rainforest are often cleared to make way for plantations. Lack of enforcement of forest protection laws or compliance to environmental legislation, may result in corporate irresponsibility leading to encroachment of plantations into protected areas, open burning of plantation wastes and release of palm mill pollutants such as palm oil mill effluent (POME) in the environment. Furthermore, the recent liberation of the mining sector in Ghana has brought in hordes of local and foreign investors into the mining sector. Large oil palm plantations are given as concessions for gold and diamond prospection. Near-virgin rain forests ideal for oil palm cultivation are similarly ceded out. The surface mining operations degrade the otherwise arable lands beyond reclamation for agricultural purposes. Demand for palm oil has increased in recent years due to its use as a biofuel, increasing the environmental impact of cultivation as well as causing a food versus fuel dilemma. Using palm oil as biofuel is perverse because it encourages the conversion of natural habitats such as forests and peatlands, into large plantations, releasing large quantities of greenhouse gases. Finally, the ever-evolving phenomenon of climate change and its attendant climate variability suggests that, the hitherto climatically suitable areas for oil palm cultivation in Ghana may, either be expanding or diminishing. This is worth investigating to re-delineate these areas. 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