DR. SYLVESTER K. DERYCSIR –OIL PALM RESEARCH INSTITUTE,GHANAe-mail: sylvesterdery@yahoo.comPresentation at the: SOUTH AT T...
 Among oil bearing plants, the oil palm Eleisguineensis has the highest oil yield per hectare. According to Global Petro...
 The oil palm takes 3 years to start fruiting, and has aneconomic life span of 25 years. There is a 5 years lead time be...
 (suitable, unencumbered, relatively cheap, easy processof acquisition). two issues immediately come to mind.- Land acqu...
 This to my mind is the most frustrating issue. It is misleading to generalize land acquisition in Africa. Different co...
- Government Land: This is land acquired by gov’t for a specific purpose,normally through an Executive Instrument, andpay...
- Nucleus Estate:- plantation owned and managed by amilling company- Smallholder: - a grower allocated land owned by themi...
 Not all land in the tropical forest is suitable for oil palmcultivation.- Rainfall/Climate: 1,800mm or more but withsuns...
 Because of the long term nature of oil palm investment(50 years plus). Regulations/laws are required to ensurei. Protect...
 Oil palm is indegenous to Africa. It has socio culturaluses in local cuisine and traditions.i. How to encourage smallhol...
 The tendency of smallholders to revert to their age oldways is high.6/4/2012presentation by: Dr. S. K. Dery 11
 Provision of basic infrastructure which cannot be left to theinvestor.e.g. Roads:- A 60tph mill, will take about 1,000mt...
 Power supply:- (medium size mills). Large mills areself sufficient. Water:- Mills use a lot of waterBefore large scale ...
 A large Estate requires about 200 skilled andpermanents staff, and up to 2,000 seasonal workers. Also competitive skill...
6. Sustainable Oil Palm Industry requires clear Rules andRegulations on Environmental ProtectionRSPO?Thank you6/4/2012pres...
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Sustainable investment for biofuel feedstocks: Oil palm

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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

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Sustainable investment for biofuel feedstocks: Oil palm

  1. 1. DR. SYLVESTER K. DERYCSIR –OIL PALM RESEARCH INSTITUTE,GHANAe-mail: sylvesterdery@yahoo.comPresentation at the: SOUTH AT THE STEERING WHEEL WORKSHOP.STOCKHOLM ENVIRONMENT INSTITUTE (SEI)May 20126/4/2012presentation by: Dr. S. K. Dery 1
  2. 2.  Among oil bearing plants, the oil palm Eleisguineensis has the highest oil yield per hectare. According to Global Petroleum Club/BiofuelInternational (2007); it yields 5,000 kg/oil/ha. or 5,950ltr/oil/ha. Palm oil therefore, should play an important role inBiofuel feedstocks. It is the only crop that has two destinct oils- Palm oil- Palm kernel oil6/4/2012presentation by: Dr. S. K. Dery 2
  3. 3.  The oil palm takes 3 years to start fruiting, and has aneconomic life span of 25 years. There is a 5 years lead time before significant volumesof fruits are harvested, and 11 years to cash break even. Several factors need to be considered when discussingsustainable investment in oil palm. Price volatility of the palm oil markets furthercomplicates economic forecasting.6/4/2012presentation by: Dr. S. K. Dery 3
  4. 4.  (suitable, unencumbered, relatively cheap, easy processof acquisition). two issues immediately come to mind.- Land acquisition issues- Land suitability issues6/4/2012presentation by: Dr. S. K. Dery 4
  5. 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), butoccupants of the land (subjects) have rights.Therefore: Family land, Private land etc.6/4/2012presentation by: Dr. S. K. Dery 5
  6. 6. - Government Land: This is land acquired by gov’t for a specific purpose,normally through an Executive Instrument, andpayment of compensation. Very difficult to get 10,000ha of unencumbered landwithout negotiating with different owners. Because of this problem investors go into outgrowerschemes.6/4/2012presentation by: Dr. S. K. Dery 6
  7. 7. - Nucleus Estate:- plantation owned and managed by amilling company- Smallholder: - a grower allocated land owned by themilling company.- Outgrower:- a grower on land not owned by millingcompany; but milling company supplies inputs andextension services on credit. Grower is contracted to supplyFFB to the mill.- Independent smallholder:- a grower who produces FFBfrom his own land; does not have a contract with anybodyand sell his fruits to whoever he sees fit.6/4/2012presentation by: Dr. S. K. Dery 7
  8. 8.  Not all land in the tropical forest is suitable for oil palmcultivation.- Rainfall/Climate: 1,800mm or more but withsunshine.- Soil:i. Fertility/acidityii. Gradientiii. Drainage- Chemical contamination. (Palm oil is edible)i. From mining operationsii. From oil spillage6/4/2012presentation by: Dr. S. K. Dery 8
  9. 9.  Because of the long term nature of oil palm investment(50 years plus). Regulations/laws are required to ensurei. Protection of the investorii. Protection of the landownerDissatisfaction by any of these stakeholders meanstrouble unsustainable investment.6/4/2012presentation by: Dr. S. K. Dery 9
  10. 10.  Oil palm is indegenous to Africa. It has socio culturaluses in local cuisine and traditions.i. How to encourage smallholders to maintain thepalms 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 facilitatetransfer of capital, technology, skills andmanagement.6/4/2012presentation by: Dr. S. K. Dery 10
  11. 11.  The tendency of smallholders to revert to their age oldways is high.6/4/2012presentation by: Dr. S. K. Dery 11
  12. 12.  Provision of basic infrastructure which cannot be left to theinvestor.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 ofCPO, staff, fuel, spares, EFB (30% of FFB weight), palmkernels.Poor roads, results in increased cost.6/4/2012presentation by: Dr. S. K. Dery 12
  13. 13.  Power supply:- (medium size mills). Large mills areself sufficient. Water:- Mills use a lot of waterBefore large scale investors can go in, funding is required. Infrastructural Development needs to preceed thecreation of plantations and mills.Collaboration between Ministries is required to get thisdone.6/4/2012presentation by: Dr. S. K. Dery 13
  14. 14.  A large Estate requires about 200 skilled andpermanents staff, and up to 2,000 seasonal workers. Also competitive skills in Research & Development. Agronomy of production (developed and maintained).6/4/2012presentation by: Dr. S. K. Dery 14
  15. 15. 6. Sustainable Oil Palm Industry requires clear Rules andRegulations on Environmental ProtectionRSPO?Thank you6/4/2012presentation by: Dr. S. K. Dery 15

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