Economic analysis of palm oil processing in Odogbolu Local Government Area, Ogun State, Nigeria

  • M.M. Sanusi
  • S.D. Idowu
  • D. Akerele
  • T.S. Olabode
Keywords: Palm oil, processors, enterprise, socioeconomic factors, Ogun State

Abstract

The study analyzed economic implication of palm oil processing in Odogbolu Local Government Area, Ogun State, Nigeria. A purposive sampling procedure was employed to select 90 respondents for the study with the aid of a questionnaire. Data generated were analyzed using descriptive statistics, budgetary technique and regression analyses. The majority (81.10%) of the palm oil processors were female, 51.10% had no formal education and most (78.90%) of the processors used the traditional method of processing. The costs and returns analysis indicates that palm oil processing is a profitable venture with an average gross margin of ₦158, 404.00 and net return of ₦125, 301.00 per processing cycle. The profitability index (0.32) revealed that for every one Naira invested in the enterprise, a profit of 32 kobo was obtained. Furthermore, the regression analysis showed that the factors affecting net returns obtained from palm oil processing were processing method (p < 0.10), processing experience (p < 0.01), marital status (p < 0.01), education (p < 0.01) and household size (p < 0.05). It was concluded that palm oil processing is a profitable enterprise in the study area. Thus, the study recommends that processors should be educated on improved/modern methods of processing.

Published
2022-06-23
Section
Articles

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eISSN: 1119-7455