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
- Akinniran, T.N., Ojedokun, I.K., Sanusi, W.A. & Ganiyu, M.O. (2013). Economic Analysis of Oil Palm Production in Surulere Local Government Area of Oyo State, Nigeria. Developing Country Studies 3(13), 8-16.
- Anderson, D.P. & Hanselka, D. (2013). Risk Management: Adding Value to Agricultural Product. AgriLife Extension Texas A&M System 1-3.
- Edem, T.K. (2012). Palm Oil Marketing and Distribution Pattern in Imo State, Nigeria: An Application of Linear Programming Model. Journal of Agriculture and Development 2(1), 234-244.
- Gourichon, H. (2013). Analysis of Incentives and Disincentives for Palm Oil in Nigeria, Rome: Monitoring African Food and Agricultural Policies (MAFAP), Food and Agriculture Organization (FAO).
- Ibitoye, O., Akinsorotan, A., Meludu, T. & Ibitoye B. (2011). Factors affecting oil palm production in Ondo State of Nigeria. Journal of Agriculture and Social Research 11 (1), 97-105.
- NPC (2006). National Population Commission report.
- Nwalieji, H.U. & Ojike, H.U. (2018). Characteristics of Small-Scale Palm Oil Production Enterprise in Anambra State. Journal of Agricultural Extension 22(1), 22-34.
- Obalola, T.O., Agboola, B.O. & Odum, E.B.E. (2017). Profitability and Constraints to Irrigated Onion Production in Wamakko and Kware Local Government Areas, Sokoto State, Nigeria. Journal of Global Agriculture and Ecology 7(3), 106-110.
- Obalola, T.O. &Tanko, L. (2016). Comparative Economic Analysis of Irrigated and Rainfed Spinach (Amaranthus cruentus) Production in Minna Metropolis, Niger State, Nigeria. Journal of Agriculture, Food and Development 16(1), 91- 98.
- Ofosu-Budu, K. & Sarpong, D.B. (2013). Oil Palm Industry in Africa: A Value Chain and Smallholder’s Study for Ghana. In: Rebuilding West Africa’s Food Potential: Policies and Market Incentives for Smallholder-Inclusive Food Value Chains (eds Aziz, E.) pp. 349-390. FAO, Rome.
- Okoli, J.U. (2003). Optimum Drying Time for Palm Nuts for Efficient Nut Cracking in Small Scale Oil Palm Fruit Processing Mills. Global journal of engineering research 2(1&2), 7-10
- Owutuamor, Z.B., Iruo, F. & Ologidi, C. (2019). Value Addition in Oil Palm Processing in Anyama District, Ogbia Local Government Area (LGA) of Bayelsa State, Nigeria. Paper presented at the 6th African Conference of Agricultural Economists, September 23-26, 2019, Abuja, Nigeria.
- Palm Oil Analytics (2017). Essential Palm Oil Statistics, Singapore: Palm Oil Analytics.
- Sanusi, M.M., Idowu, S.D., Akerele, D. & Olabode, T.S. (2022). Economic Analysis of Palm Oil Processing in Odogbolu Local Government Area, Ogun State, Nigeria. Agro-Science Journal of Tropical Agriculture, Food, Environment and Extension 21(2), 130-135.
- Sarku, R. (2015). Economic Analysis of Processing Palm Kernel in Kwaebibirem District, Ghana. Journal of Agriculture and Veterinary Sciences 7(2), 83-101.
- Shashi, K., Rajwinder, S. & Amir, S. (2017). Value-Adding Practices in Food Supply Chain: Evidence from Indian Food Industry. Agribusiness 33(1), 116-130.
- Soewu, D.A., Bakare, O.K. & Ayodele, I.A. (2012). Trade in wild mammalian species for traditional medicine in Ogun State, Nigeria. Global Journal of Medical Research 12(3), 6-22.
- Verheye, W. (2002). Growth and Production of Oil Palm. Soil, Plant Growth and Crop production Journal (2), 1-10.
- Yinusa, B. (2015). Investigation of women's palm oil processing in some villages of Nigeria. International Journal of Manufactring, Material and Mechanical Engineering Research 2 (1), 7-11.
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
- Akinniran, T.N., Ojedokun, I.K., Sanusi, W.A. & Ganiyu, M.O. (2013). Economic Analysis of Oil Palm Production in Surulere Local Government Area of Oyo State, Nigeria. Developing Country Studies 3(13), 8-16.
- Anderson, D.P. & Hanselka, D. (2013). Risk Management: Adding Value to Agricultural Product. AgriLife Extension Texas A&M System 1-3.
- Edem, T.K. (2012). Palm Oil Marketing and Distribution Pattern in Imo State, Nigeria: An Application of Linear Programming Model. Journal of Agriculture and Development 2(1), 234-244.
- Gourichon, H. (2013). Analysis of Incentives and Disincentives for Palm Oil in Nigeria, Rome: Monitoring African Food and Agricultural Policies (MAFAP), Food and Agriculture Organization (FAO).
- Ibitoye, O., Akinsorotan, A., Meludu, T. & Ibitoye B. (2011). Factors affecting oil palm production in Ondo State of Nigeria. Journal of Agriculture and Social Research 11 (1), 97-105.
- NPC (2006). National Population Commission report.
- Nwalieji, H.U. & Ojike, H.U. (2018). Characteristics of Small-Scale Palm Oil Production Enterprise in Anambra State. Journal of Agricultural Extension 22(1), 22-34.
- Obalola, T.O., Agboola, B.O. & Odum, E.B.E. (2017). Profitability and Constraints to Irrigated Onion Production in Wamakko and Kware Local Government Areas, Sokoto State, Nigeria. Journal of Global Agriculture and Ecology 7(3), 106-110.
- Obalola, T.O. &Tanko, L. (2016). Comparative Economic Analysis of Irrigated and Rainfed Spinach (Amaranthus cruentus) Production in Minna Metropolis, Niger State, Nigeria. Journal of Agriculture, Food and Development 16(1), 91- 98.
- Ofosu-Budu, K. & Sarpong, D.B. (2013). Oil Palm Industry in Africa: A Value Chain and Smallholder’s Study for Ghana. In: Rebuilding West Africa’s Food Potential: Policies and Market Incentives for Smallholder-Inclusive Food Value Chains (eds Aziz, E.) pp. 349-390. FAO, Rome.
- Okoli, J.U. (2003). Optimum Drying Time for Palm Nuts for Efficient Nut Cracking in Small Scale Oil Palm Fruit Processing Mills. Global journal of engineering research 2(1&2), 7-10
- Owutuamor, Z.B., Iruo, F. & Ologidi, C. (2019). Value Addition in Oil Palm Processing in Anyama District, Ogbia Local Government Area (LGA) of Bayelsa State, Nigeria. Paper presented at the 6th African Conference of Agricultural Economists, September 23-26, 2019, Abuja, Nigeria.
- Palm Oil Analytics (2017). Essential Palm Oil Statistics, Singapore: Palm Oil Analytics.
- Sanusi, M.M., Idowu, S.D., Akerele, D. & Olabode, T.S. (2022). Economic Analysis of Palm Oil Processing in Odogbolu Local Government Area, Ogun State, Nigeria. Agro-Science Journal of Tropical Agriculture, Food, Environment and Extension 21(2), 130-135.
- Sarku, R. (2015). Economic Analysis of Processing Palm Kernel in Kwaebibirem District, Ghana. Journal of Agriculture and Veterinary Sciences 7(2), 83-101.
- Shashi, K., Rajwinder, S. & Amir, S. (2017). Value-Adding Practices in Food Supply Chain: Evidence from Indian Food Industry. Agribusiness 33(1), 116-130.
- Soewu, D.A., Bakare, O.K. & Ayodele, I.A. (2012). Trade in wild mammalian species for traditional medicine in Ogun State, Nigeria. Global Journal of Medical Research 12(3), 6-22.
- Verheye, W. (2002). Growth and Production of Oil Palm. Soil, Plant Growth and Crop production Journal (2), 1-10.
- Yinusa, B. (2015). Investigation of women's palm oil processing in some villages of Nigeria. International Journal of Manufactring, Material and Mechanical Engineering Research 2 (1), 7-11.
Details
| Primary Language | English |
|---|---|
| Subjects | Farm Enterprises, Sustainable Agricultural Development |
| Journal Section | RESEARCH ARTICLE |
| Authors | |
| 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 2024Volume: 27 Issue: 2 |
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