Economics of alternative palm oil processing technologies in Imo State

Abstract

This study was designed to analyse the costs and returns of alternative palm oil processing techniques in Imo State. Data were collected with structured questionnaire from 120 randomly selected palm oil processors, and analysed using both descriptive and inferential statistics. Results showed that there was a significant difference in the net returns of palm oil processors using traditional and hydraulic processing technologies. Farm size, producer price and palm oil output positively and significantly influenced net returns, while costs of marketing, harvesting, and processing as well as season of processing negatively and significantly influenced the net returns of both traditional and hydraulic technologies users. Palm oil output is positively related to processing stage, capital inputs, variety of palm fruit, and harvesting time, and negatively related to mandays of labour and processing technology used. Output of Palm oil and consequently net returns would increase if palm oil processors retain or increase the level of use of factors which positively influence output and reduce the level of use of factors that negatively influence output.Keywords: economics, palm oil processing, technologies

Journal of Technology and Education in Nigeria Vol. 9(2) 2004: 56-64