Palm oil and fractions market in Ghana

Earlier Report Observations

Between 2018 and 2020, the market for palm oil and fractions in Ghana experienced notable volume swings. A sharp 48.9% rise in international demand for Ghanaian palm oil in 2019 drove exports higher, reducing the amount available domestically and contributing to a smaller market size that year. Subsequently, export prices fell to zero in 2020, likely due to broader market disruptions, which dampened export activity and helped domestic supply recover as imports increased.

Local production began a steady climb from 2021, aided by industry efforts to adopt more energy-efficient processing technology and a government-led focus on yield improvement. This growth in output, however, was overshadowed in 2022 by a dramatic collapse in imports, which caused the overall market volume to contract despite higher domestic production. During this period, the sector's revival was also characterized by a growing emphasis on sustainability certifications to access premium international markets.

The later years were defined by significant capital inflows and a strategic policy shift to curb reliance on imports. New market entrants, such as Onesta Ghana Ltd. with a $50 million plantation development, alongside a national plan for a $500 million sectoral investment, targeted long-term capacity expansion. Simultaneously, compliance with regulations like the EU Deforestation Regulation began to directly influence trade patterns and market requirements.

Production palm oil and fractions in Ghana

In kind, 2017-2020, K t

Globally, Ghana ranked as the 16th largest producer of palm oil and fractions from 2017 to 2020.

Top producers of palm oil and fractions, 2017-2020

World map of production of palm oil and fractions, 2017-2020

In 2020, Ghana produced 264.5 K t of palm oil and fractions, marking a 2.6% increase from 2019. Over the 2017-2020 period, production grew by 10.7%, with a compound annual growth rate of 3.5%. The highest production level was in 2018 at 312.5 K t, which saw the largest increase of 30.8%. In contrast, 2019 experienced the most significant decline of 17.5%.

Annual dynamics of production in Ghana in kind, 2017-2020, K t

In value, 2017-2020, M $ US

In 2020, the output of palm oil and fractions in Ghana was valued at 251.4 M $ US, showing a 21.9% rise compared to the previous year. From 2017 to 2020, production increased by 3.9%, translating to an annualized rate of 1.3%. The lowest value was recorded in 2019 at 206.3 M $ US, which also saw the largest decline of 26.6%. The peak value occurred in 2018 at 280.8 M $ US.

Annual dynamics of production in Ghana in value, 2017-2020, M $ US

Exports palm oil and fractions from Ghana

Exports in kind, K t

In 2020, Ghana exported 115.4 K t of palm oil and fractions, representing a 15.1% year-over-year decrease. Over the 2017-2020 period, exports grew by 13%, with a compound annual growth rate of 4.1%. The lowest export volume was in 2018 at 88.7 K t, while the highest was in 2019 at 135.9 K t, which also saw the largest increase of 53.3%.

Annual dynamics of product's exports from Ghana in kind, 2017-2020, K t

From 2017 to 2020, Senegal, Niger, and Benin were the top destinations for Ghana's palm oil and fractions exports in kind. Senegal accounted for 56.2% of exports, Niger for 14.4%, and Benin for 10.9%, together making up 81.5% of total flows.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Ghana in kind, 2017-2020

Exports in value, M $ US

Palm oil and fractions exports from Ghana increased for the second consecutive year in 2020, reaching 109.7 M $ US, up by 0.9% from the previous year. Between 2017 and 2020, exports rose by 6%, equating to an annualized rate of 2.0%. The lowest value was recorded in 2018 at 79.7 M $ US, which also saw the largest decline of 23.0%. The largest increase occurred in 2019 at 36.5%.

Annual dynamics of product's exports from Ghana in value, 2017-2020, M $ US

From 2017 to 2020, Senegal, Niger, and Benin led the value-based export structure for palm oil and fractions from Ghana. Senegal held 56.7% of exports in value terms, Niger 14.2%, and Benin 10.3%, collectively accounting for 81.2% of total flows.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Ghana in value, 2017-2020

Imports palm oil and fractions to Ghana

Imports in kind, K t

After two years of decline, palm oil and fractions imports into Ghana increased in 2020, amounting to 293.7 K t, a moderate 3.2% rise from the prior year. Between 2017 and 2020, imports decreased by 20.6%, with an annualized rate of 7.4%. The lowest import volume was in 2019 at 284.5 K t, while the largest decline was in 2018 at 14.2%.

Annual dynamics of product's imports to Ghana in kind, 2017-2020, K t

From 2017 to 2020, imports of palm oil and fractions into Ghana were heavily concentrated on Malaysia, which accounted for 75.3% of total flows in kind; other countries made up the remaining share.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Ghana in kind, 2017-2020

Imports in value, M $ US

Following a two-year decrease, palm oil and fractions imports into Ghana rose in 2020, registering 210.9 M $ US, a steep 54.4% increase from the previous year. Between 2017 and 2020, imports fell by 26.3%, with an annualized rate of 9.7%. The lowest value was in 2019 at 136.6 M $ US, which also saw the largest decline of 39.4%.

Annual dynamics of product's imports to Ghana in value, 2017-2020, M $ US

From 2017 to 2020, Malaysia dominated the partner structure for imports in value terms, holding a 77.3% share of total flows; other markets had relatively smaller shares.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Ghana in value, 2017-2020