Economic Analysis of Processing Palm Kernel in Kwaebibirem District, Ghana

Rebecca Sarku

Department of Geography and Resource Development

University of Ghana, Legon, Accra

Email: rsarku@yahoo.com  

ABSTRACT

Increasing demand for fats and oil for industrial production has resulted in net import of palm oil. In order to resolve this problem, various interventions have been implemented to boost palm oil production. Despite the application of numerous initiatives in the oil palm sector in Ghana, palm kernel oil production continued to decline. This study examined the profitability of processing palm kernel oil in order to identify gaps and possible ways palm kernel oil production can be enhanced to supplement demand for palm oil. Quantitative and qualitative methods were used to elicit information for the study. Respondents indicated that they were no longer producing palm kernel oil but rather, they were only engaged in it treatment. Palm kernels were sold to other groups of processors who own modified equipment purposely designed to generate palm kernel oil. Findings on the profitability of this activity revealed that though women no longer generate oil from their activity, they earned average income of GH¢ 126.59 on a tonne of palm kernel. The viability of this activity was tested with a benefit-cost ratio, at a rate of 1.67. The test proved that treatment of palm kernels without the production of palm kernel oil is a profitable business.  It was discovered that this menial activity generates employment for 10-14 number of people in a mill. Processors called for state and private sector investment in the industry.

Keywords: Palm Nuts, Palm Kernel, Palm Oil, Kwaebibirem District, Palm Kernel Oil