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Economics Of Small-Scale Palm Oil Processing In Ikwerre And Etche Local Government Areas Of Rivers State, Nigeria

DI Ekine
ME Onu


Palm oil is one of the most common products used by almost everybody in Nigeria. Small holders constitute the major producers of palm oil in Ikwerre and Etche Local Government Areas. This study was conducted in Ikwerre and Etche Local Government Areas of Rivers State to determine the economic analysis of small-scale palm oil processing in the study area. 93 palm oil processors were randomly selected from 10 Agricultural blocks in Rivers State Agricultural Development Programme. Descriptive statistics, frequencies tables and gross margin model were used for the analysis. The result revealed that the age bracket between 31-40 years (31.3%) dominated the palm oil processing enterprise in Ikwerre while the age bracket between 41-50 years (53.3%) dominated the enterprise in Etche local government area. Majority of the respondents were male in both Ikwerre and Etche local government areas with 62.5% and 68.9% respectively. Most of the participants were holders of WASC with 39.6% and 51.1% in Ikwerre and Etche L.G.As., respectively. The study revealed that the minimum cost of construction, procurement of equipment and installment of a small scale palm oil processing mill in the two LGAs was estimated to be N873,750 and the cost of processing 1000 Fresh Fruit
Palm Bunches (FFPB)was estimated to be N84,000.00 with a gross margin of N16,000.00 including N5,200.00 as the price for the sales of uncracked palm kernel in Ikwerre LGA while in the Etch LGA cost of processing 1000 FFPB was N76,100.00 with a gross margin of N16,000.00 including the sales of uncracked palm kernel of N4,800.00. The sum of N2,988,270.00 and N1,524,420.00 was estimated as the participants monthly gross margin in Ikwerre and Etche LGAs respectively. In order to increase the revenue earnings of the participants in the study area, government should assist them by granting loans and subsidizing cost of buying
processing equipment. Also participants should activate small- scale palm oil producers cooperative and make it more functional to earn higher revenue.