Presented as part of the seminar: South at the Steering Wheel - Improving sustainability in land investment for bioenergy in sub-Saharan Africa 29th May 2012, 08:00 - 17:30 Naturvårdsverket (Swedish EPA), Stockholm, Sweden Speaker: Dr. Sylvester Dery, Palm Oil Research Institute (Ghana) Sylvester Dery discusses Palm Oil bioenergy development issues as including land acquisition (State or Community/Stool /family own lands, including purchase vs. outgrower schemes) or the use of abandoned/expired mining lands land suitability regarding rainfall/climate, soil fertility and chemical contamination legal protection of the investor and of the landowner incentives as well for large scale investors (to facilitate transfer of capital, technology, skills and management) as for smallholders (to maintain the palms for e.g. 25 years) Finding funding also for the provision of additional basic Infrastructure (e.g schools, electricity, water, roads) which in some cases should precede the creation of farms or plantations. Facilitate interministerial collaboration on these issues. Establishing and maintaining clear rules and regulations on environmental protection for a sustainable oil palm industry

1. DR. SYLVESTER K. DERY
CSIR –OIL PALM RESEARCH INSTITUTE,
GHANA
e-mail: sylvesterdery@yahoo.com
Presentation at the: SOUTH AT THE STEERING WHEEL WORKSHOP.
STOCKHOLM ENVIRONMENT INSTITUTE (SEI)
May 2012
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2.  Among oil bearing plants, the oil palm Eleis
guineensis has the highest oil yield per hectare.
 According to Global Petroleum Club/Biofuel
International (2007); it yields 5,000 kg/oil/ha. or 5,950
ltr/oil/ha.
 Palm oil therefore, should play an important role in
Biofuel feedstocks.
 It is the only crop that has two destinct oils
- Palm oil
- Palm kernel oil
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3.  The oil palm takes 3 years to start fruiting, and has an
economic life span of 25 years.
 There is a 5 years lead time before significant volumes
of fruits are harvested, and 11 years to cash break even.
 Several factors need to be considered when discussing
sustainable investment in oil palm.
 Price volatility of the palm oil markets further
complicates economic forecasting.
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4.  (suitable, unencumbered, relatively cheap, easy process
of acquisition).
 two issues immediately come to mind.
- Land acquisition issues
- Land suitability issues
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5.  This to my mind is the most frustrating issue.
 It is misleading to generalize land acquisition in Africa.
 Different countries have different laws/ regulation.
 In Ghana; Government does not own land.
- Stool Lands:
i. The allodial title is vested in the stool (Chief), but
occupants of the land (subjects) have rights.
Therefore: Family land, Private land etc.
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6. - Government Land:
 This is land acquired by gov’t for a specific purpose,
normally through an Executive Instrument, and
payment of compensation.
 Very difficult to get 10,000ha of unencumbered land
without negotiating with different owners.
 Because of this problem investors go into outgrower
schemes.
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7. - Nucleus Estate:- plantation owned and managed by a
milling company
- Smallholder: - a grower allocated land owned by the
milling company.
- Outgrower:- a grower on land not owned by milling
company; but milling company supplies inputs and
extension services on credit. Grower is contracted to supply
FFB to the mill.
- Independent smallholder:- a grower who produces FFB
from his own land; does not have a contract with anybody
and sell his fruits to whoever he sees fit.
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8.  Not all land in the tropical forest is suitable for oil palm
cultivation.
- Rainfall/Climate: 1,800mm or more but with
sunshine.
- Soil:
i. Fertility/acidity
ii. Gradient
iii. Drainage
- Chemical contamination. (Palm oil is edible)
i. From mining operations
ii. From oil spillage
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9.  Because of the long term nature of oil palm investment
(50 years plus). Regulations/laws are required to ensure
i. Protection of the investor
ii. Protection of the landowner
Dissatisfaction by any of these stakeholders means
trouble unsustainable investment.
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10.  Oil palm is indegenous to Africa. It has socio cultural
uses in local cuisine and traditions.
i. How to encourage smallholders to maintain the
palms for 25 years, rather than fell for palm wine.
(15yrs + palm tree sells for GH¢10.00 = US$ 6-7).
ii. Not to divert FFB to artisanal mills etc.
iii. How do you attract large scale investors to facilitate
transfer of capital, technology, skills and
management.
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11.  The tendency of smallholders to revert to their age old
ways is high.
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12.  Provision of basic infrastructure which cannot be left to the
investor.
e.g. Roads:
- A 60tph mill, will take about 1,000mt FFB a day (24hr).
- Ave. truck load = 8mt = 125 truck loads a day.
This does not include transport of fertilizers, evacuation of
CPO, staff, fuel, spares, EFB (30% of FFB weight), palm
kernels.
Poor roads, results in increased cost.
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13.  Power supply:- (medium size mills). Large mills are
self sufficient.
 Water:- Mills use a lot of water
Before large scale investors can go in, funding is required.
 Infrastructural Development needs to preceed the
creation of plantations and mills.
Collaboration between Ministries is required to get this
done.
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14.  A large Estate requires about 200 skilled and
permanents staff, and up to 2,000 seasonal workers.
 Also competitive skills in Research & Development.
 Agronomy of production (developed and maintained).
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15. 6. Sustainable Oil Palm Industry requires clear Rules and
Regulations on Environmental Protection
RSPO?
Thank you
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