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Production Estimates and Crop Assessment Division
Foreign Agricultural Service

 

 

September 13, 2002

Favorable Palm Oil Production for Cote d’Ivoire

Cote d’Ivoire’s palm oil production for MY 2002/03 is forecast to rise resulting from good rainfall for the past two years, adequate fertilizer applications, and a successful replanting  program which will bring higher yields from younger trees.  PALMCI, the largest palm oil company in Cote d’Ivoire, claims they have replaced nearly 60 percent of the aged plantations during the past 6 years.  The replanted palm trees older than four to five years are now bearing fruit and are being harvested.  In addition, palm oil yields are also expected to increase from the good rains received for the past two years (NDVI charts).

Chart showing palm oil production over time.  Lower production is due to aging plantations, privatization, and poor rainfall. 

Figure 1.  Palm Oil Production for Cote d'Ivoire

As indicated in Figure 1, palm oil production in Cote d’Ivoire decreased after privatization in 1997. The decrease in production from 1998-2000 was largely due to low yields from the large proportion of aged trees, increased area out of production from replanting, initial reorganization problems from privatization in 1997, and disruption of fruit delivery in 2000.  Privatization involved selling the larger assets of the parastatal PALMINDUSTRIE and these assets were bought by three large private enterprises: 1) PALMCI, which acquired two-thirds of the production capacity, including nine processing plants and 35,000 hectares of industrial plantations 2) SIPEF-CI bought two processing plants at Bolo and Soubré, and 12,700 hectares of industrial plantations and 3) PALMAFRIQUE, with three processing plants and 7500 hectares of plantations. 

PALMCI processes over 70 percent of the total palm oil in Cote d’Ivoire, with nine processing plants listed in Table 1 (Ehania palm oil factory).  Major PALMCI plantation areas in Cote d’Ivoire are shown in Figure 2 and major PALMCI stakeholders include Blohorn, Unilever, Cosmivoire, SIFCA, and the Government of Cote d’Ivoire (GOCI).  Socfin is PALMCI’s technical partner from Belgium and they also own palm oil plantations in Southeast Asia (FAS 1997 Attaché Report). 

The smallholder owned plantations is the result of the Plan Palmier launched in 1963, which outlined the establishment of state owned nuclear estates and surrounding land belonging to contracting smallholders.  Funds provided by the World Bank and the European Fund played an important role in enabling the implementation of the plan.  By 1984, the parastatal PALMINDUSTRIE owned 60 percent of the area devoted to oil palm production and contracting smallholders owned 40 percent (WRM bulletin No. 47).  Current landownership estimates indicate the companies hold 30 percent of palm oil plantation area in Cote d’Ivoire and smallholders own 70 percent of palm oil plantation area (Table 1). 

 Map showing location of palm oil plantations. 

Figure 2.  Location of PALMCI Plantations and Processing Plants

 

Table 1.  Ownership of Cote d’Ivoire Palm Oil Plantations

Table showing ownership of palm oil plantations.

 

The basic structure of oil palm plantations in Cote d'Ivoire is a central plantation and mill which are owned by a company.  The mill also serves the nearby plantations which are owned by contracting smallholders or village cooperatives.  The company that owns the mill also furnishes the smallholders with seedlings, fertilizers, pesticides, and technical help.  The mill also sets up a weekly collection schedule and the smallholder is paid on a weight basis. The palm fruit harvest period in Cote d’Ivoire is year-round, but the primary (or greatest) peak harvest season occurs from February-March and a secondary peak harvest period occurs between October-December.

Palm Oil in West Africa

The palm oil tree is indigenous to West Africa, with natural stands occurring along a 300-mile wide coastal belt ranging from the Gambia to Angola.  Oil palm also extends eastward through central Africa and into eastern Africa.  The African countries which hold large areas covered by oil palms are Nigeria (2.6 million ha), Guinea (310,000 ha), D.R. of Congo (formerly Zaire) (220,000 ha), Cote d’Ivoire (190,000 ha), Ghana (125,000 ha), Cameroon (80,000 ha), and smaller areas in Benin, Burundi, Central African Republic, Republic of Congo, Equatorial Guinea, Gabon, Gambia, Guinea Bissau, Liberia, Senegal, Tanzania, Togo, and Uganda.

Annual water requirements are 1500-4000 mm, without pronounced dry periods, although less high-yielding trees have been grown in less than optimal conditions with annual rainfalls ranging from 1200-8000 mm (Annual Rainfall for Cote d'Ivoire). Mature palm trees reach peak production or yields after 12-years of growth and need to be replaced after 25-30 years due to lower production potential caused by aging.

Oil palm production in West Africa are of two basic types: 1) wild groves and 2) groves that have been systematically planted either in plantations or smallholder plots (Palm Oil Plantation at Ehania, Cote d’Ivoire).  Wild groves often are harvested by subsistence farmers who extract the oil by traditional methods and sell or consume the oil locally.  Oil palm fruit from wild groves are not always destined for the subsistence market, as fruit from the wild groves may also be sold to nearby processing mills.  Palm oil from plantations is mostly aimed at the production of oil for the commercial sector which is typically exported or utilized by local industries in urban areas.  The fruit harvested from smallholder plantations is sold to large mills where the oil is extracted and sold for commercial use. 

Oil palm uses and processing methods also differ between the subsistence and commercial markets.   For example, palm oil for the subsistence market in Africa is mainly used as a food crop while the commercial market is aimed towards industrial uses.  In west Africa, palm oil is a major food item and it is typically used for making food stuffs with its natural flavor having a distinguishable effect on dishes.  Traditional extraction methods are typically done in the villages and quality is poor due to low oil extraction efficiencies.  Palm oil is also used to make palm wine and local medicines.  The leaves may also be used to make thatches, which are often used as roofing material in certain areas. 

Once the fruit is harvested for commercial markets, oil is extracted from the fleshy part of the fruit, while the palm kernel is extracted from the shell.  Commercial extraction of palm oil from the fruit bunch requires five basic operations: 1) sterilization of the bunches; 2) stripping of the palm fruit from the bunch; 3) maceration of the palm fruit; 4) oil extraction; and 5) oil clarification.   (Palm Oil Factory at Ehania, Cote d’Ivoire).  The processing of the crude oil gives rise to two different products: 1) palm stearin and 2) palm olein.  The stearin (which is solid at room temperature) is used entirely for industrial processes such as cosmetics, soaps, detergents, candles, lubricating oils, while the olein (liquid at room temperature) is used exclusively in food stuffs such as cooking oil, margarines, creams, cakes, ice creams, chocolates, and pastries.  

Palm oil is the world’s best selling vegetable oil, representing 40 percent of the total global trade in edible oils.  It is much more important than soy, which represents 22 percent of the world market (FAS online, 1998).   Palm oil differs from its major competitors (soybean, sunflowerseed, and rapeseed oil) in that is obtained from a perennial tree crop and drought impacts are less severe in comparison to annual oilseed crops. 

Drought impacts on oil palm yields are experienced 10-12 months later (through the abortion of the female inflorescence), 20-24 months later (through a change in sex ratio), and most severely 30-36 months later (through the abortion of flower primordias).  As a rule of thumb, rainfall of less than 100-mm for two consecutive months  (or less than 150-mm for four consecutive months), can lower the cumulative 3-year oil palm yields by more than 5 percent.  A severe drought of six consecutive months of rainfall less than 150-mm, can lower the 3-year cumulative yields by more than 20 percent.  These are only rough estimates and the actual yield reduction for specific areas must be calculated using standard water balance equations, correct soil water holding capacity, local evapotranspiration rates, and accurate crop yield data. 

Related Links with the Foreign Agricultural Service (FAS)

FAS Attaché Reports for Oilseeds at Cote d’Ivoire

    2002     2001    2000    1999    1998    1997    1995

    Crop Tour to West Africa
 

    Palm Oil Plantation at Ehania, Cote d’Ivoire
 

    Palm Oil Factory at Ehania, Cote d’Ivoire
  

Internet Sites about Palm Oil in West Africa

Oil Palm Market Information
http://www.arabis.org/arab/arab_mkt_op.htm

PALMCI
http://www.afribourse.com/fiches/PALMCI.html

Société ivoirienne de palmiers à huile (SIPEF-CI)
    http://www.sipef.be/pdf/country.pdf
    http://www.sipef.be/continents.html

“All you wanted to know about Palm Oil”
http://www.newafrica.com/agriculture/articlepg2.asp?ID=2200&CountryID=10

“Bitter Fruit of Oil Palm”
http://www.wrm.org.uy/plantations/material/oilpalm.html


For more information, contact Curt Reynolds
with the Production Estimates and Crop Assessment Division, at Curt.Reynolds@fas.usda.gov or (202) 690-0134.

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