Economics of palm oil marketing in Owerri, Imo State, Nigeria

  • NC Ehirim Department of Agricultural Economics Federal University of Technology, Owerri, Nigeria


This study was done to estimate the marketing efficiency and factor affecting the Marketing margin in Palm oil marketing in Owerri, Imo State. Data on trades socio economic factors, marketing cost and marketing margin were collected from 80 traders randomly selected from the area. The data were fitted into a linear model and a multiple regression analysis was used to determine the relationship between costs of performing marketing services and some socio economic factor and marketing margin. The result obtained revealed that 31.2 percent of the traders were young, active and capable of taking risks in the business, while the old traders were gradually quitting the trade. There is a very high cost of (57.5 percent) and processing (15.8 percent) an indication that price fluctuation in eminent in the marketing. There is an indication that changes in cost of marketing services and socio economic factors have a strong explanation to variations in the marketing margin. An inverse relationship exited between marketing margin and traders level experience in the trade. Cost of storage and depreciation were directly related to marketing margin and strongly significant at 5 and 1 percent respectively. There is a strong need to encourage more youths to join the business while extension education is strongly recommended for old traders on the use of cost serving techniques by improve there marketing efficiency and reduce marketing margin. The net profit level was high (38 percent) and the marketing efficiency index of 1.87 which implied that the level of satisfaction derive in consuming a unit volume of palm oil at a reduce cost was high. More traders are advice to join the business now to enjoy the good opportunities the trade has created for consumers.

Keywords: economics, palm oil marketing

Journal of Technology and Education in Nigeria Vol. 9(1) 2004: 71-81


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eISSN: 1118-5570