Economic Analysis of Palm Kernel Nut Processing: Evidence from Ogun State, Southwestern Nigeria

Oyeyode Obalola; Kazeem Aboaba; Dare Akerele; Samson Oluwaseyi Afolayan

doi:10.18016/ksutarimdoga.vi.1331002

TR EN

Economic Analysis of Palm Kernel Nut Processing: Evidence from Ogun State, Southwestern Nigeria

Öz

Prior to ramping up advocacy for palm kernel nut processing as a means to diversify livelihood source, it becomes germane to look into the economic analysis of palm kernel nut processing as a way of proffering empirical based evidence on the status of the enterprise. The study was conducted in Ipokia Local Government Area, Ogun State, Nigeria. To select 40 palm kernel processors for the study, a multistage sampling approach was used. The study employed both descriptive and inferential statistics. The findings showed that the majority of processors were engaged in the extraction of palm kernel cake and oil from palm kernel nuts. Profit realized from the extraction of oil and cracking of palm kernel nut per ton per week was ₦57, 378.66 (USD 145.26) and ₦24, 775.11 (USD 62.72) with a return on investment of 1.37 and 1.32 respectively. Thus, the enterprise is profitable. In addition, the regression analysis showed that household size (p<0.05), processing experience (p<0.01) and processing stage (p<0.05) significantly influenced the profit of the palm kernel nut processors. The study therefore recommends effort be made to attract investors to support the smallholders in order to improve their livelihood and export funding.

Anahtar Kelimeler

Economic Analysis of Palm Kernel Nut Processing: Evidence from Ogun State, Southwestern Nigeria

Abstract

Prior to ramping up advocacy for palm kernel nut processing as a means to diversify livelihood source, it becomes germane to look into the economic analysis of palm kernel nut processing as a way of proffering empirical based evidence on the status of the enterprise. The study was conducted in Ipokia Local Government Area, Ogun State, Nigeria. To select 40 palm kernel processors for the study, a multistage sampling approach was used. The study employed both descriptive and inferential statistics. The findings showed that the majority of processors were engaged in the extraction of palm kernel cake and oil from palm kernel nuts. Profit realized from the extraction of oil and cracking of palm kernel nut per ton per week was ₦57, 378.66 (USD 145.26) and ₦24, 775.11 (USD 62.72) with a return on investment of 1.37 and 1.32 respectively. Thus, the enterprise is profitable. In addition, the regression analysis showed that household size (p<0.05), processing experience (p<0.01) and processing stage (p<0.05) significantly influenced the profit of the palm kernel nut processors. The study therefore recommends effort be made to attract investors to support the smallholders in order to improve their livelihood and export funding.

Keywords

References

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Details

Primary Language

English

Subjects

Farm Enterprises , Sustainable Agricultural Development

Journal Section

Research Article

Authors

Oyeyode Obalola ^*
0000-0002-2015-431X
Nigeria

Kazeem Aboaba
0000-0002-9486-6758
Nigeria

Dare Akerele
0000-0003-4725-035X
Nigeria

Samson Oluwaseyi Afolayan
0000-0001-6692-4175
Nigeria

Early Pub Date

January 21, 2024

Publication Date

April 1, 2024

Submission Date

July 21, 2023

Acceptance Date

November 12, 2023

Published in Issue

Year 2024 Volume: 27 Number: 2

DOI

https://doi.org/10.18016/ksutarimdoga.vi.1331002

IZ

https://izlik.org/JA93KY23MT

Cite

RIS / Bibtex

APA

Obalola, O., Aboaba, K., Akerele, D., & Afolayan, S. O. (2024). Economic Analysis of Palm Kernel Nut Processing: Evidence from Ogun State, Southwestern Nigeria. Kahramanmaraş Sütçü İmam Üniversitesi Tarım Ve Doğa Dergisi, 27(2), 453-459. https://doi.org/10.18016/ksutarimdoga.vi.1331002