Acadres Consulting

International Journal of Social Sciences & Economic Environment

ECONOMIC ANALYSIS OF OIL PALM VALUE CHAIN ENTERPRISES IN KOGI STATE, NIGERIA

*Adejo, P.E. **Opaluwa, H.I., ***Opeyemi, G., ****Anthony, N., Oyewole, B.O.

*HOD, Department of Agricultural Economics and Extension, Prince Abubakar Audu University, Anyigba, Kogi State, Nigeria. ORCID: https://orcid.org/0000-0002-2940-0118

**Professor, Department of Agricultural Economics and Extension, Prince Abubakar Audu University, Anyigba, Kogi State, Nigeria, ORCID: https://orcid.org/0000-0002-9161-9639

***Department of Agricultural Economics and Extension, Prince Abubakar Audu University, Anyigba, Kogi State, Nigeria, ORCID: https://orcid.org/0000-0002-8275-2023

****Director, Raw Material Research and Development Council, Abuja, Maitama, District, Nigeria

*****Department of Animal Production, Prince Abubakar Audu University, Anyigba, Kogi State, Nigeria ORCID: https://orcid.org/0000-0002-3931-6868

DOI : http:// doi.org/10.53882/IJSSEE.2023.0802004 Page No : 46-66

Published Online : 2023-12-30

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ABSTRACT

Aim of the study: The study analysed the value chain of oil palm and examined the determinants of each actor`s net return across the value chain in Kogi State North central, Nigeria.

Design/Methodology: Primary data was used for the study. A multistage sampling technique elicited information from 383 respondents across the oil palm value chain. The study utilized descriptive statistics, gross marginal analysis, and an ordinary least square model.

Findings: The result of the study revealed the net returns from oil palm production, processing and marketing in the study area were N259733.3, N 136,681.05 and N982, 591.64 respectively. The result showed a return-cost ratio of 1.91, 1.36, and 1.47 respectively for oil palm producers, processors, and palm oil marketers in the study area.

Practical Implications: This study indicated that enterprises across the oil palm value chain were profitable and feasible. It was found that oil

palm farming experience, technology/processing machine, cost of storage, transportation cost, depreciation expenses, price of palm oil, labour cost, and marketing experience were the factors influencing the farmers`, processors’, and palm oil marketers’ net returns.

Originality/value: The drive for this work is hinged on the fact that there is a need for technical and economic improvement across the oil palm value chain. The study makes an immense contribution to the existing literature on the oil palm value chain. Factors propelling maximization of profit and income generation were made bare. This is imperative to attract and successfully sustain investments in the oil palm sector.

Keywords: Oil palm, Value chain, Enterprise, Profitability, Kogi State, Nigeria

Paper Type: Research Article

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Cite this Article as: Adejo, P.E., Opaluwa, H.I., Opeyemi, G., Anthony, N., & Oyewole, B.O. (2023), “Economic Analysis of Oil Palm Value Chain Enterprises in Kogi State, Nigeria”, International Journal of Social Sciences & Economic Environment, Vol. 8, Issue 2, 2023, pp 46-66, DOI: http:// doi.org/10.53882/IJSSEE.2023.0802004

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REFERENCES

Edem, T.K. (2012). Palm oil marketing and distribution pattern in Imo State, Nigeria: An application of linear programming model. Journal of Agriculture and Development, 2(1): 234-244.

Murphy, D.J., Goggin, K. & Paterson, R.R.M. Oil palm in the (2020) and beyond: challenges and solutions. CABI Agric Biosci 2, 39 (2021). DOI: https://doi.org/10.1186/s43170-021-00058-3.

Omonona, B.T, Agboje I.A (2013): Growth in oil-palm value chain under microenterprises in delta state, Nigeria. International journal of research in management, economics and commerce. 3: 5.

Statista (2020). Leading producers of palm oil worldwide from 2012/13 to 2019/20. Statista. 2020. Retrieved From: https://www.statista.com/statistics/856231/palm-oil-top-global-producers/

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