The document discusses three models of private sector-led oil palm commercialization in Southwestern Ghana: large-scale buyer model (LSBM), independent model, and mixed model. It analyzes the different types of farmers engaged in each model, the welfare implications for participants, and lessons that can be learned from these models compared to direct state interventions. The study uses surveys conducted in 2017 and 2019 and qualitative interviews to assess indicators like commercialization levels, income, and food security outcomes under the various oil palm commercialization arrangements.

1. Oil Palm Commercialisation Models
and Outcomes in South-Western Ghana
Fred Dzanku, Louis Hodey, William Quarmine, Charity Osei-Amponsah, Samuel
Dakey, Dzifa Tovieke
The Dynamics of Agricultural Commercialisation, Diversification and Rural Change in
Sub-Saharan Africa: Lessons from Multi-Country Studies of the Afrint and APRA Programmes
Afrint-APRA Seminar, IDS, Brighton - 3 October 2018
Funded by UK aid from the UK Government
www.future-agricultures.org/apra

2. www.future-agricultures.org/apra
Introduction
• State interventions in agricultural
commercialisation in Ghana dates back to pre-
colonial era
• Study focuses on private sector-led oil palm
commercialisation (OPC)
• Main objective is to study livelihood outcomes
(poverty, food security, women’s empowerment)
that result from different OPC models

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Introduction
• Oil palm 2nd most important commercial
crop, after cocoa
• Unlike cocoa, oil palm production and
marketing takes place under varying
arrangements, even within the same district,
town or village
• Larger downstream processing industries can
contribute to employment & poverty
reduction

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MAP of Major Oil Palm Producing Areas
APRA study area

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Hypothesis & Questions
• OPC models yield varying livelihood outcomes
because of differing entry and capital requirements
• What categories of farmers engage with which OPC
model and why?
• What are the welfare implications of participation
in the different OPC models, and how do they
differ by sub-groups?
• What can we learn from the OPC models compared
with direct state interventions?

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OPC Arrangement
Mpohor Ahanta West Total
Large scale buyer 114 111 225
(16.5) (16.0) (32.5)
Independent 21 210 321
(3.0) (30.4) (33.4)
Mixed 77 159 236
(11.1) (23.0) (34.1)
Total 212 480 692
(30.6) 69.4) (100)

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Methods & Indicators
• Methods
o Two surveys: 2017 and 2019
o Qualitative interviews
• Indicators
o Household commercialisation index
o Net income per capita
o Food security

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• High levels of specialisation

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• High levels of commercialisation:
district

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High average incomes

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Food insecurity
77.1 84.5 86.7
22.9 15.5 13.3
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
LSBM MARKET MIXED
Food secure Food insecure