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Systemic imbalances leave West African oil palm farmers struggling despite crucial role in production – Report

By Ibrahim Abubakar
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Systemic imbalances leave West African oil palm farmers struggling despite crucial role in production – Report

A new report, Palm Oil Barometer 2025: Procurement for Prosperity, is calling for a major overhaul in global palm oil procurement practices to ensure fairer value distribution for smallholder farmers in West Africa.

The report, developed by Solidaridad and endorsed by smallholder representatives and industry experts, highlights systemic imbalances that leave farmers struggling despite their crucial role in production.

Smallholders bear the brunt of an unbalanced system

Oil palm is a lifeline for millions in West Africa, providing food security and income while offering a pathway out of poverty. However, the report reveals that smallholders – who manage the majority of production – receive only a fraction of the profits.

In Ghana, smallholders cultivate 81% of oil palm areas but face low yields and poor market access. Similarly, in Nigeria, they contribute 80% of production but grapple with outdated processing methods and insufficient infrastructure. Côte d’Ivoire and Sierra Leone rely heavily on small-scale farmers, who manage 73% and 70% of production, respectively.

Despite this, West Africa remains a net importer of palm oil, with systemic barriers preventing smallholders from boosting productivity and incomes.

Sustainability efforts undermined by unfair practices

The report finds that smallholders struggle to invest in sustainable farming due to low incomes, volatile prices, and climate change impacts.

Michael Opong, an oil palm farmer in Ghana’s Eastern Region, explains: “Most farmers lack proper tools and infrastructure, leading to low yields. Even with training, incomes are too low to invest in improvements. We need consistent support to break these barriers.”

Without fair pricing and financial support, farmers resort to short-term survival tactics, sometimes worsening environmental degradation. Land tenure insecurity further discourages long-term sustainability investments.

A Call for “Procurement for Prosperity”

The report proposes a shift from traditional sourcing to “Procurement for Prosperity,” built on four principles – Policy, Pricing, Partnerships, and Programmes.

Senior Policy Advisor at Solidaridad Europe, Marieke Leegwater emphasized that “demanding sustainability isn’t enough. Companies must ensure fair prices and include smallholders in the value chain.”

With new regulations like the EU Deforestation Regulation (EUDR) taking effect, the report urges a balanced approach that combats deforestation while safeguarding smallholder rights.

The Path Forward

The Palm Oil Barometer 2025 provides actionable steps for governments, businesses, and financial institutions to create a more inclusive and resilient palm oil sector. Ensuring fair value distribution is not just ethical, it’s essential for the industry’s future.

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Ibrahim Abubakar is a writer with 3news.com. Follow him on X, @ibrahim-abubakar and LinkedIn: Ibrahim Abubakar

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