ISSN 2329-9797
International Journal of Agricultural Economics and Extension Vol. 1 (4), pp. 017-023, April, 2013. © International Scholars Journals
Full Length Research Paper
Factors affecting performance of palm oil processors in the South-South Region of Nigeria
Ini-mfon V. Patrick1, Sunday B. Akpan1, Samuel J. Udoka1 Daniel E. John2 and Ubong E. Etokeren3
1Department of Agricultural Economics and Resources Management, Akwa Ibom State University Ikot Akpaden, Akwa Ibom State, Nigeria.
2Department of Agricultural Economics and Extension, University of Uyo, Akwa Ibom State, Nigeria.
3Department of Crop Science, University of Uyo, Akwa Ibom State, Nigeria.
*Corresponding author. E-mail: [email protected]
Accepted 08 March, 2013
Abstract
This research assessed the socioeconomic characteristics of palm oil processors and determined factors affecting the performance of the business in Ikot Ekpene area of Akwa Ibom state, southern Nigeria. Thirty (30) oil palm processors were randomly sampled and used for data collection. The analysis of the socio-economic characteristics of processors reveals that respondents were all males who are approaching their old age. Majority of them have some levels of formal education and moderate family size. The OLS regression result showed that farmer’s education, experience, membership of a social group, income from other sources, labor cost and initial cost of mills are significant policy variables affecting both on-season and off- season performances (gross margins) of palm oil processors in the study area. Based on the finding, it is recommended that policies which focus on education of farmers or processors will promote performance in the sub sector. Also, Capital intensive method of processing should be introduced as a way to curb the rising cost of labour. In addition, farmers should be encouraged to form cooperatives or other social groups to enable them pool resources that will enhance acquisition of equipment with better efficiency. Organized market for palm oil mill products in Ikot Ekpene area is also strongly advocated.
Keyword: Palm oil, Ikot Ekpene, gross margin, Akwa Ibom, processor.