ECONOMICS OF SMALL-SCALE OIL PALM PRODUCTION IN KOGI STATE, NIGERIA
Table Of Contents
- <p> <b>TABLE OF CONTENTS </b></p><p>Cover page - i </p><p>Title page- ii </p><p>Declaration - iii </p><p>Certification - iv </p><p>Dedication - v </p><p>Acknowledgement - vi </p><p>Table of contents - viii </p><p>List of tables- xiii </p><p>List of figures- xv </p><p>Abstract - xvi </p><p>
Chapter ONE
INTRODUCTION
- 1.0Introduction- 1 </p><p>
- 1.1Background information- 1 </p><p>
- 1.2The problem statement- 9 </p><p>
- 1.3The objectives of the study- 13 </p><p>
- 1.4Hypotheses- 13 </p><p>
- 1.5Justification of the study- 13 </p><p>
- 1.6Limitations of the Study - 15 </p><p>
- 1.7Basic Assumptions - 16 </p><p>
Chapter TWO
LITERATURE REVIEW
- 2.0Literature Review- 17 </p><p>
- 2.1The small-scale farms- 17 </p><p>
- 2.2Origin and distribution of oil palm- 18 </p><p>
- 2.3Oil palm development in Nigeria- 20 </p><p>
- 2.4Social and economic value of oil palm- 22 </p><p>2.
- 4.1Social value- 22 </p><p>2.
- 4.2The economic value- 23 </p><p>
- 2.5Methods of oil palm production in Nigeria- 23 </p><p>2.
- 5.1Sources of planting material- 23 </p><p>2.
- 5.2Agronomy of the oil palm- 24 </p><p>2.5.
- 2.1Germination- 25 </p><p>2.5.
- 2.2Nursery- 25 </p><p>2.5.
- 2.3Harvesting- 27 </p><p>
- 2.6Resource use in oil palm industry- 28 </p><p>
- 2.7Oil palm processing in Nigeria- 31 </p><p>2.
- 7.1Local method- 31 </p><p>2.
- 7.2Modern method- 32 </p><p>
- 2.8Funding - 32 </p><p>
- 2.9Costs and returns in oil palm industry- 34 </p><p>
- 2.10The importance of oil palm in Nigerian economy- 35 </p><p>
- 2.11Uses of oil palm products- 36 </p><p>
- 2.12Conceptual framework- 36 </p><p>
- 2.13Theoretical framework- 38 </p><p>
- 2.14Analytical framework- 39 </p><p>2.
- 14.1Farm budgeting technique- 39 </p><p>2.
- 14.2Resource use efficiency- 40 </p><p>2.
- 14.3Capitalization Techniques - 40 </p><p>2.
- 14.4Optimum replacement model- 41 </p><p>2.
- 14.5Price Instability and Production- 42 </p><p>2.
- 14.6Production function- 43 </p><p>2.
- 14.7Regression Analysis- 43 </p><p>
- 2.15Empirical studies- 47 </p><p><b>
Chapter THREE
RESEARCH METHODOLOGY
- 3.0Research Methodology- 50 </b></p><p>
- 3.1The study area- 50 </p><p>
- 3.2Sampling procedure- 53 </p><p>
- 3.3Method of data collection- 54 </p><p>
- 3.4Analysis of data- 55 </p><p>3.
- 4.1Descriptive statistics- 55 </p><p>3.
- 4.2Farm budgeting technique- 55 </p><p>3.
- 4.3Model specification- 56 </p><p>3.
- 4.4Optimum Replacement Model- 58 </p><p>3.
- 4.5Price Instability and Production - 59 </p><p><b>
Chapter FOUR
DATA PRESENTATION AND ANALYSIS
- 4.0Results and Discussions - 61 </b></p><p>
- 4.1Socio-Economic Characteristics of Small-Scale Oil Palm Producers - 61 </p><p>4.
- 1.1Age of Respondents - 61 </p><p>4.
- 1.2Marital Status - 62 </p><p>4.
- 1.3Distribution of Respondents According to Occupation - 63</p><p> 4.
- 1.4Household Size - 63 </p><p>4.
- 1.5Level of Education - 64 </p><p>4.
- 1.6Experience of Oil Palm Production - 65 </p><p>4.
- 1.7Income - 66 </p><p>
- 4.2Oil Palm Production - 68 </p><p>4.
- 2.1Field Planting Period by Respondents - 68 </p><p>4.
- 2.2Success Rate of Field Planting - 69 </p><p>4.
- 2.3Field Maintenance Activities - 71 </p><p>4.
- 2.4Interest in Oil Palm Production - 72 </p><p>4.
- 2.5Relative Contribution of Variables to Production Using Linear and Double Log Functions - 73 </p><p>4.
- 2.6Loans and Credit - 77 </p><p>
- 4.3Yield of Oil Palm - 79 </p><p>4.
- 3.1National Output of Oil Palm 1998 – 2008 - 81 </p><p>4.
- 3.2The Optimum Replacement Age of Oil Palm - 82 </p><p>
- 4.4Productivity of Oil Palm - 88 </p><p>4.
- 4.1Gross Margin Analysis - 88 </p><p>4.
- 4.2Cost and Returns in Oil Palm - 89</p><p>4.
- 4.3Capitalization of Annual Net Returns on Oil Palm at 22% Discount Rate 1998 – 2007 for the Four Zones of The Study Area - 94 </p><p>
- 4.5Price Instability and Production - 96 </p><p>4.
- 5.1Declining Productivity of Oil Palm - 98 </p><p>
- 4.6Products of the Oil Palm- 100 </p><p>4.
- 6.1Uses of Oil Palm Products - 101 </p><p>
- 4.7The Constraints of Oil Palm Production - 103 </p><p><b>
Chapter FIVE
SUMMARY, CONCLUSION AND RECOMMENDATIONS
- 5.0Summary of Findings, Conclusion and Recommendations- 106</b> </p><p>
- 5.1Summary of Findings - 106 </p><p>
- 5.2Suggestions for Further Studies………………....................................… 108 </p><p>
- 5.3Conclusion - 109 </p><p>
- 5.4Recommendations - 109 </p><p>References - 113 </p><p>Appendices - 119 <br></p>
Project Abstract
<p> <b>ABSTRACT</b> </p><p>The study was conducted to examine the Economics of Small-scale Oil Palm Production in Kogi State of Nigeria. The objectives of the study are to determine the factors affecting resource use efficiency by Oil Palm Producers in the study area and determine the optimum replacement age of oil palm. The tools of analysis used are- simple descriptive statistics, multiple regression analysis, optimum replacement model and gross margin analysis. From the estimate of oil palm in the state,40,30,20 and 30 oil palm farmers were proportionally and purposively sampled from the four (4) Agricultural Zones, A,B,C and D with their headquarters at Ayetoro-Gbede, Anyigba, Koton-Karfe and Alloma respectively, to give a sample size of 120 oil palm producers. The oil palm producers were interviewed with structured questionnaire to obtain information on oil palm production. Data for optimum replacement age were obtained from NIFOR oil palm plantation, Acharu substation. The data collected were analysed using the tools of analysis as specified. The t-values and F-statistics are significant up to 5 percent level of significance. The oil palm currently on the fields were planted over 26 years ago, most of which are over 45 years, already having impaired productivity. The gross margin analysis shows a margin of N2,046,844.00. The benefit-cost analysis shows a ratio of 11.56, indicating that one naira invested in oil palm production will yield N1.56. The production has not been able to keep pace with consumption demand, hence Nigeria has to import palm oil to fill the deficit gap. The highest output recorded in research station was 13.50tonnes of fresh fruit bunch (ffb) per hectare. The study shows that optimum replacement age of oil palm is 35 years for the production to enjoy a flow of output. The major constraint being lack of good policy direction and inadequate financial support and other incentives to boost oil palm produce economy. It is recommended that there should be conscious desire to implement research findings. The need to commission agency(ies) to undertake the establishment of oil palm farms by government and after tending it to certain age shall hand them over to private individuals on charge is imperative. There is a need for credit policy to offer credit assistance to oil palm producers. Oil palm producers should be encouraged to cut down their oil palm at the age of 35 years <br></p>
Project Overview