ECONOMICS OF PALM OIL PRODUCTION BY SMALLHOLDER OIL PALM FARMERS IN EMOHUA LOCAL GOVERNMENT AREA, RIVERS STATE, NIGERIA

G I WILCOX, C M TASIE

Abstract


 

This study examined the economics of palm oil production from oil palm in Emohua Local Government Area of Rivers state, Nigeria. There is a huge prospect in the palm oil production enterprise but with little attention as it is left in the hands of smallholder farmers with inadequate technological know-how, low finance, etc. Its overall productivity remains low evidenced by the low standard of living of these farmers which is why this study is carried out. Data was obtained through the administration of copies of structured questionnaire to interview 60 respondents selected by purposive and random sampling methods. The study described the socio-economic characteristics of the farmers, considered the method of palm oil production, estimated the cost and returns in palm oil and identified the constraints to palm oil production. Descriptive and gross margin analyses were used to analyze the data. Majority (83.3%) of the farmers were males, with formal education (about 70%), with a mean age of 45 years. The gross margin of production was ₦1,387,128.33 per hectare showing that palm oil production is profitable. Production was constrained by finance, high cost of fresh fruit bunch and transportation. Policies to boost palm oil production to maximize profit should be encouraged in the study area. Palm oil producers should be supported and encouraged to establish plantations in the area with modern facilities. Credit and transport facilities should be made available to palm oil producers.


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References


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