Towards Alleviating Threat Factors in Small Scale Palm Oil Enterprises in the Tropics: Evidence from Nigeria

Smallholder palm oil enterprises dominate the vegetable oil industry in Nigeria but their operational continuity and growth have been under serious threat. This study analysed the threat factors in small scale palm oil firms with data collected from 84 palm oil processors. The finding indicates that the enterprise is profitable (₦486,745) but could be wipe out by external environmental factors. Further result indicates that the most significant threat factor to traditional palm oil extraction firms is climate hazards, particularly bush burning, product competitiveness with substitutes, theft of palm bunches, non-participation of youths, aging farmers and aged farmers’ quit tendencies. It was recommended among others that environmental protection policies and regulations by relevant agencies should be intensified against bush burning and reduce the external threats to small scale palm oil extraction firms in Nigeria. Advocacies for climate change mitigation measures should be intensified so as to reduce the external threats to small scale palm oil extraction firms in Delta State, Nigeria

Smallholder palm oil enterprises dominate the vegetable oil industry in Nigeria but their operational continuity and growth have been under serious threat. This study analysed the threat factors in small scale palm oil firms with data collected from 84 palm oil processors. The finding indicates that the enterprise is profitable (₦486,745) but could be wipe out by external environmental factors. Further result indicates that the most significant threat factor to traditional palm oil extraction firms is climate hazards, particularly bush burning, product competitiveness with substitutes, theft of palm bunches, non-participation of youths, aging farmers and aged farmers’ quit tendencies. It was recommended among others that environmental protection policies and regulations by relevant agencies should be intensified against bush burning and reduce the external threats to small scale palm oil extraction firms in Nigeria. Advocacies for climate change mitigation measures should be intensified so as to reduce the external threats to small scale palm oil extraction firms in Delta State, Nigeria.