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Apr 30, 2026Keywords:
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Main Article Content
Profitability of Palm Oil Processing and Marketing among Rural Households in Southeast Nigeria
Abstract
The study analyzed the cost and returns of palm oil processing and marketing among rural farmers in Southeast Nigeria. The specific objectives were to examine the methods of processing oil palm produce, estimate the costs and returns from processing oil palm produce, examine the various marketing channels used by rural households in the marketing of oil palm produce, and estimate the costs and returns from the marketing of oil palm produce. The study used a multi-stage random sampling procedure to select 540 respondents. Data for the study were collected with the use of a structured questionnaire and analyzed with the use of frequency, percentage, mean, and gross margin models. The major results revealed that a fairly large proportion (58.1%) of the respondents used semimodern/mechanized methods for palm fruit processing. The estimated gross margin from oil palm fruit processing was N562,401.7, while the benefit-cost ratio was 2.40. The major markets available for rural households in the marketing of their oil palm produce were rural markets (78.7%) and urban markets (76.3%). The estimated gross margin (GM) from the marketing of oil palm produce was N572,086.1, while the benefit-cost ratio (BCR) was 2.08. The study concluded that oil palm processing and marketing were profitable, which assures a return on investment for rural farmers in Southeast Nigeria. Rural households in Southeast Nigeria should engage in oil palm production, processing, and marketing since the industry is profitable with a very high gross margin. This will help to improve the living standard of the rural households as well as create employment for both skilled and unskilled labour.
