Smallholder Farmers Demand Fair Share in Palm Oil Industry as Solidaridad Report Exposes inequities
Smallholder farmers across West Africa, who produce the bulk of the region’s palm oil, are calling for urgent reforms to the global value chain that continues to exclude them from fair profits and investment.
Despite contributing up to 80% of palm oil production in countries like Nigeria, Ghana, Côte d’Ivoire, and Sierra Leone, these farmers remain trapped in poverty and face mounting challenges.
A new report released by Solidaridad West Africa, Palm Oil Barometer 2025: Procurement for Prosperity, highlights how low incomes, poor access to tools, and limited infrastructure are preventing smallholders from improving yields or adopting sustainable practices.
The report urges governments and companies to adopt a new model that ensures fair value distribution and farmer inclusion.
“Oil palm production in our communities faces serious challenges,” said Michael Opong, a smallholder farmer from Ghana’s Eastern Region. “Most farmers lack access to proper tools, equipment, and infrastructure. Even with training, our incomes are too low to invest in improvements.”
The report acknowledges that while smallholders produce the majority of palm oil, they receive the smallest share of its economic value. Many also face the effects of climate change, insecure land tenure, and price volatility that further weaken their position in the market.
Solidaridad West Africa is advocating for a shift to a “Procurement for Prosperity” model that prioritizes four key areas: inclusive policy, fair pricing, equitable partnerships, and targeted support programmes. The aim is to make it possible for smallholders to earn a living income and participate meaningfully in the supply chain.
“Simply demanding sustainable production is insufficient. Companies need to commit to an inclusive value chain that integrates smallholder voices and rewards sustainable practices fairly.” Marieke Leegwater, Senior Policy Advisor at Solidaridad Europe. “ said
As global sustainability regulations like the EU’s deforestation rule tighten, Solidaridad warns that excluding smallholders will increase risks across the palm oil industry. The report calls on all stakeholders to work together to ensure a more equitable and resilient future for the farmers who form the backbone of the sector.