366 Rebuilding West Africa’s food potential
Oil palm producers in the district mostly sell their FFBs to open market processors and large estate mills
such as Obooma and GOPDC. Currently, no formal contracts exist between the estate buyers and the
smallholder oil palm producers. These producers used to sell to GOPDC but, according to the farmers,
GOPDC promised to transport their produce from the farms and then did not fulfil this agreement. Due
to low output, GOPDC was losing revenue, so GOPDC asked the farmers to bring their FFBs to the
factory; however, this arrangement was not appealing to the farmers because they had to pay the cost of
transportation. Interaction between the farmers and GOPDC has weakened because producers want to
be paid immediately after harvest. The only way harvesters can get their money upfront is for the farmers
to sell to the local buyers. In addition, sometimes the local buyers are able to advance some money to
the farmers, in anticipation of a harvest. The farmers do not have this type of arrangement with GOPDC.The main reasons why oil palm producers would want to belong to a group would be to obtain improved
seedlings, fertilizers and agro-chemicals. Currently, the nature of interactions among FFB producers,
between producers and input suppliers and between producers and processors is mainly informal,
through individual contacts; there are no formal contract arrangements.Table 10. Cost Estimate for Maintaining an Acre of Oil Palm to Fruiting (FGD estimates)
Activity
(Ghana Cedis)Kwae Otumi Pramkese (1) Damang Pramkese (2)(Ghana Cedis)
Leasing of land 150/acre/5 yrs
Clearing 250 30 50 50 50
Felling 100 30 100 50 30
Burning and
stumping (GHC)^150103315020
Lining and pegging
(GHC)^50404025
Labor cost involved
in planting (GHC)^5460503025
Cost of seedlings
(GHC)3.50*60
seedlings (210)4ghc*60
seedlings (240)4ghc*60
seedlings (240)
Cost of nets (GHC) 60
Weeding (GHC) 60 90 100 120 75
Fertilizer application
(GHC)^30
Farm Maintenance
Pruning (GHC) 30 60 30 50 42
Weeding (GHC) 60 90 100 120 75
Harvesting (GHC) 47 32 36 20 36
Total Farm main-
tenance cost/acre^137182166190143
Source: Summary by authors from focused group discussions.