Palm Kernel Processing for Income and Employment in the Kwaebibirem District, Ghana

Abstract

Increasing demand for fats and oil for industrial production has resulted in net import of palm oil. To resolve this problem, various interventions have been implemented to boost palm oil production in the small scale sector in Ghana. Yet, palm kernel oil production in the small scale sector is in a continual decline. This study examined gaps in processing palm kernel oil and ways to enhance production to supplement the demand for palm oil. Quantitative and qualitative methods were used to generate information for the study. Respondents indicated that they were only engaged in the treatment of palm kernels and not in the production of palm kernel oil. Treated palm kernels were sold to other group of processors who owned modified equipment purposely designed to generate palm kernel oil. Findings about the profitability of this activity revealed that though women no longer produce oil, they earn average income of GHȼ 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. In spite of the profitability of this activity, processors used the income derived from this economic activity to provide for various socio-economic needs. The study recommended that extension officers in the district should play a lead role by assisting processors to form cooperatives in order to gain access to innovative technologies, processing equipment, business skill development and other resources that are necessary for the growth of palm kernel processing industry.